KCB to open investment banking subsidiary

Apr 04, 2011

KCB has announced it will open an investment banking subsidiary within the next three months.

According to Business Daily, the move will introduce greater competition within an industry that is currently "in the tight grip of a handful of players".

Furthermore, it could give KCB the opportunity to earn transaction advisory fees as a deal-maker in a number of project financing contracts.

Deputy Chief Executive Peter Munyiri explained that the Kenyan government is currently seeking funds for capital-intensive infrastructure projects, such as roads, railways and dams, thus influencing public development expenditure in the future.

The lender will be returning to the capital market intermediary and transaction advisory services business after a break of almost 30 years.

By re-entering the sector, it will be able to access revenue from the secondary trading of treasury bonds, the news provider continued.

Additionally, the bank believes the change will allow it to enter into lead transaction arranger roles within debt capital markets as the East Africa Community pushes to become a common market.

KCB's aim is to become Africa's preferred financial solutions provider, while still maintaining a global presence.