Kingdom Financial Holdings seals deal with AfrAsia Bank
January 24, 2012
Kingdom Financial Holdings Limited has reached an agreement with Mauritius-based financial services group AfrAsia Bank Limited which will invest US$9.5 million for an 35 percent equity in the group.
The investment completes the recapitalisation of KFHL and paves the way for the group to accelerate its strategic initiatives to consolidate the operations of its key subsidiaries.
Kingdom has been pursuing several initiatives to recapitalise its operations by raising US$25 million, comprising US$15 million equity and US$10 million debt finance.
The capital-raising model sought to raise the required amount through a combination of a rights issue, private placement and public offering.
The equity capital raised is largely required to recapitalise Kingdom Bank Limited, the flagship banking subsidiary in the Kingdom stable.
“After months of hard work by Kingdom directors, management team and advisors, we are pleased to advise all our stakeholders, and most importantly our valued clients, that Kingdom and AfrAsia Bank Limited have reached agreement.
AfrAsia will invest US$9.5 million in Kingdom 35 percent equity stake,” Kingdom said in a statement to Herald Business.
“We, Kingdom and AfrAsia, are pleased with this development and are optimistic about the future of the company as we prepare a new chapter in the future of Kingdom through the various strategic initiatives that were outlined when the capital raising programme was announced.”
The investment by AfrAsia and the US$2,8 million raised through the rights issue will be used to recapitalise Kingdom Bank, which together with the existing capital will result in Kingdom Bank having core capital in excess of the minimum capital requirements set by the Reserve Bank of Zimbabwe.
Kingdom said it had already received approvals from the Ministry of Finance, the Exchange Control and the Bank Licensing, Supervision and Surveillance divisions of the Reserve Bank of Zimbabwe and the Ministry of Youth Development, Indigenisation and Empowerment.
“Kingdom is working towards securing an outstanding approval which the group is confident will be granted,” the group said.
“We take this opportunity to thank our stakeholders, the relevant regulatory authorities and our valued clients for their continued loyalty, support and confidence in the company.”
AfrAsia is a rapidly growing and significant banking group in Mauritius. Mauritius has become an increasingly important market for international capital seeking opportunities in Africa.
Group chief executive officer Mrs Lynn Mukonoweshuro said: “This is a momentous and important occasion for us as we embark on a new future in the history of Kingdom. The past few years have been challenging but by God’s grace, through the continued loyalty of our customers and the support of the relevant stakeholders, including our regulator, we have persevered.
“Kingdom will never be the same again and we face the future with renewed confidence of achieving the strategic objectives we are pursuing to grow our business.”
The founder and anchor shareholder of Kingdom, Mr Nigel Chanakira, said he was never in doubt that Kingdom would be able to raise the required capital.
“We are led by this unwavering faith that we achieve anything that we set our minds to accomplish.
It has been a challenging yet exciting period since we embarked on this capital raising exercise, and never a moment did I doubt that we would succeed as has been vindicated by the investment in Kingdom by AfrAsia.
“The AfrAsia Bank transaction will open new channels of much needed capital, lines of credit and deal flow for our loyal client base. I am excited about the prospects beckoning on our horizon. ”
NGY: Successful completion of Muara Enim CBM well
January 16, 2012
SUCCESSFUL COMPLETION OF MUARA ENIM COAL BED METHANE (CBM) WELL
Highlights
1. Successful completion of coring and logging at Muara Enim reaching a depth of 733 metres.
2. A total of 38.2 metres (net) of coal was confirmed from coring and logging operations.
3. One contiguous 19 metre coal seam identified.
4. Gas content calculation by Geoservices & Geogas is expected to be completed during next month.
Muara Enim Results & the 2012 Muara Enim PSC Drilling Plan
1. Results of the Muara Enim well are consistent with the previous estimates for prospective gas-in-place provided by PT Trias Energy Perkasa (2011) and RISC (June 2010).
2. After completion of the next well NuEnergy, together with Netherland Sewell and Associated Indorporated (NSAI), plan to generate an independent report confirming the prospective and contingent gas resources in NuEnergy’s Muara Enim CBM concession.
3. The drilling rig is currently preparing to move to the second Muara Enim drill site located 5 kilometres to the west and it is planned to drill to a depth of 1,000 metres.
4. After the completion of the second Muara Enim well, NuEnergy will consider fast-tracking the extraction process by drilling a pilot production well to be completed in 2012 in the Muara Enim Production Sharing Contract (PSC) area.
Muara Enim, Muara Enim II & Rengat PSC’s
Muara Enim PSC is located in the prolific South Sumatra coal basin and the PSC covers an area of 652.6 km2. Mura Enim PSC is adjacent to the NGY operated Muara Enim II PSC which covers an area of 1170.9 km2.
Both PSC’s and the surrounding areas have been drilled for over 100 years and the basin has been subjected to extensive seismic and drilling operations during that period. The continuity of the thick Mangus and Subam coal seams has been proven over this period. Both PSC’s have major power and gas lines running through them providing immediate market access.
Muara Enim PSC is operated by the wholly owned subsidiary of NuEnergy Gas, PT Trisula CBM Energi. NuEnergy Gas’s joint venture partner under the PSC is Indonesia’s National oil and gas corporation, PT Pertamina (60%).
Rengat PSC, 100% NuEnergy Gas controlled and operated, is located in the central Sumatra coal basin. This PSC covers an area of 3000km2 and is in the vicinity of major gas pipeline infrastructure. The company plans to seek a JV partner for this PSC in Q1/2 2012.
Location Map – Muara Enim & Muara Enim II PSC’s
