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GetBucks Eyes Two-Tier Banking Status

Zimbabwe Stock Exchange (ZSE) listed diversified micro-finance institution, GetBucks has cast its eyes on tier two banking status to include other forms of core banking as demand for its financial products has greatly improved since 2016, 263Chat Business has established.

To achieve this, the company is set to raise up to RTGS$ 42 million through sale of shares under the control of the Board of Directors.

“Demand for loans has grown consistently since 2016, as the company has diversified its offering to include micro-mortgages and SMEs loans.  The company requires new capital injection to continue to grow its loan offering to productive sectors of the economy namely agriculture and manufacturing,” GetBucks chief finance officer, Paul Soko told shareholders at an extra-ordinary general meeting this morning.

“To achieve this, the company seeks to obtain a tier two banking license which will enable the company to offer a variety of core banking services not currently available under the micro finance banking license,”

“With the placement of 350 million shares under the control of the directors, the company can potentially raise up to an additional RTGS$ 42 million in capital,”

“This new capital will also allow the company’s assets to grow through as mix of funding including debt and deposits,” added Soko.

As of December 2018, capital of the company was $ 20 million against a minimum requirement for the tire two banking license of $ 25 million.

An employee share purchase scheme as recommended by shareholders was also adopted at the meeting.

The bank has undergone tremendous growth over the years transforming from a micro lender to a fully-fledged microfinance bank with an array of banking services.

However, Soko could not pre-empt the company’s trading performance for the year saying the company’s financial year ends this June, and it will soon release its results in the next few weeks but stated that the company’s loan book  remains in balance as repayments are well on course.

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