Capital raising

Advised a leading East African bank on an equity stake sale to strengthen capital adequacy 

PwC was commissioned by a leading commercial bank in East Africa to help raise capital. The transaction is aimed at supporting growth and ensuring compliance with revised capital adequacy requirements. The bank offers a full suite of wholesale, retail, investment, and transaction banking services to governments, institutions, multinationals, corporates, SMEs, and individuals. 

• Preparation and positioning: We began by conducting a detailed diagnostic of the bank’s financial performance, capital position and growth strategy to establish a clear foundation for the transaction. Consequently, we crafted a compelling equity story and investment thesis that showcases the bank’s strong market positioning, growth potential, and alignment with the revised regulatory capital requirements. To bring the opportunity to market, we also prepared high-quality marketing materials – including an Information Memorandum, investor teaser, and a robust financial model – that effectively communicates the opportunity and attracts a diverse pool of credible investors
• Investor outreach: We mapped and prioritized a diverse pool of potential investors, ranging from regional and international banks, development finance institutions, pension funds, family offices, and private equity funds. With the targeted pipeline in place, we launched a focused engagement process designed to generate strong interest and create a competitive dynamic among investors, ultimately securing the most strategic partner for the bank
• Transaction structuring: We advised on the optimal transaction structure to ensure a balance between capital adequacy requirements, shareholder objectives, and investor appetite. Our support included tailored guidance on pricing, as well as navigating regulatory structuring considerations 
• Due diligence: We coordinated and managed the due diligence process, providing investors with the transparency they require while safeguarding sensitive information and protecting the bank’s strategic interests 
• Regulatory and closing support: We engaged with the relevant regulators to ensure full compliance with capital adequacy and ownership requirements. In parallel, we are overseeing the execution of the deal, ensuring a seamless and successful closing

The sale of the equity stake is expected to enhance the bank’s capital base, capital adequacy, and ensure compliance with revised regulatory requirements supporting sustainable growth. By engaging a diverse pool of potential investors – including regional and international banks, development finance institutions, and family offices – the process is designed to secure partners who bring both capital and strategic value. The structured due diligence and negotiation process also enforces transparency, strengthens internal controls, and elevates investor confidence in the bank, positioning it for long-term success.