nigel chanakira 23-10-11.jpgKingdom Financial Holdings Limited (KFHL) says it has identified four foreign investors who are set to inject capital into the entity in line with its recapitalisation drive aimed at strengthening the financial position of the institution.

The investing partners, who are set to be unveiled before the end of the year, are set to inject a significant proportion of equity into the financial institution which is currently working on a plan to raise US$25 million.

The partnership between Kingdom and the four investors comes at a time economic analysts have called upon financial institutions to consider alternative means of raising capital including offshore funding and mergers.

KFHL Director, Mr Nigel Chanakira confirmed the development and said the institution is in the process of finalising the investment deal which is expected to strengthen the bank’s capital position and restore depositors’ confidence.

Meanwhile, Mr Chanakira also confirmed that the recent US$4,5 million rights issue, meant to raise capital for the bank, received an overwhelming response from the shareholders with a 55,6% subscription rate.

The Reserve Bank of Zimbabwe (RBZ) gave a special dispensation to Kingdom Bank early this year to comply with the minimum capital requirements by February 2012.

The financial institution is optimistic that the recapitalisation drive will enable it to meet the RBZ capital threshold and increase its market share which in June this year stood at 5%.