Regional financial institution, ABC Holdings is set to raise US$50 million through rights issue to enable the institution to embark on expansion projects this year.

The rights issue came out during the presentation of ABC Holdings’ financial results for 2011.

Speaking to ZBC News on the sidelines of the results presentation, ABC Holdings Group Chief Executive Officer, Mr Douglas Munatsi confirmed the rights issues, saying it is anticipated to be complete by May while expansion projects are anticipated to begin by June.

The local institution posted a profit of 55 million Botswana pula, which is 106% higher than 2010 and this has been attributed to strong business growth.

With the local financial institutions facing liquidity constraints attributed partly to non-performing loans, the bank has 5,87% of bad loans.

The bank’s deposits increased by 50% from 4,9 billion pula to 7,4 billion pula while loan advances doubled from 3,1 billion to 6,1 billion pula with total income increasing by 21 percent from 546 million to  659 million pula.