I&M Bank Rwanda rights issue oversubscribed

I&M Bank Rwanda recently conducted a successful rights issue that saw an oversubscription of 112 percent. The bank's Managing Director, Robin Bairstow, expressed his delight at the outcome of the rights issue, highlighting the strong confidence that shareholders have in the organization. Bairstow emphasized that despite the challenging times, I&M Bank Rwanda continues to provide opportunities for investors to be part of a company with a proven track record and stable earnings. The oversubscription of the rights issue signals a significant shift in investor sentiment in Rwanda compared to previous years. Bairstow noted that institutional investors in Rwanda played a major role in driving the oversubscription, indicating growing confidence in the local market and listed companies. With 10 listings on the Rwanda Stock Exchange, investors are presented with a variety of attractive opportunities. Bairstow also discussed the market interest generated by the rights issue, attributing it to the bank's previous corporate actions, including a bonus issue earlier in the year. The bank's virtual shareholder roadshow attracted a high level of attendance, not only from Rwanda but also across the East African region, showcasing the bank's growing appeal. In terms of the deployment of the capital raised, I&M Bank Rwanda is focused on maintaining a stable growth rate, particularly in the SME sector, which plays a crucial role in driving job creation and economic opportunities. The bank plans to invest in enhancing its technology offerings to streamline its services and improve customer experience. Additionally, the capital infusion will strengthen key financial ratios and provide a buffer against potential challenges, such as those posed by the ongoing COVID-19 pandemic. Speaking of the pandemic, Bairstow addressed the impact on non-performing loans, highlighting the bank's proactive approach in supporting customers facing financial difficulties. Through loan rescheduling and financial support programs, I&M Bank Rwanda has managed to mitigate the rise in impairments, particularly in sectors like hospitality and tourism, which have been significantly affected by the crisis. Looking ahead, Bairstow discussed the bank's focus on digital banking and the shift towards remote transactions, accelerated by the pandemic. While emphasizing the importance of branch networks, the bank acknowledges the increasing reliance on digital channels and the need for convenient and efficient services. Despite the shifts in transaction behavior, branch banking remains a vital part of the bank's operations, providing a balance between traditional and modern banking services. In conclusion, I&M Bank Rwanda's oversubscribed rights issue not only reflects investor confidence in the bank but also points to a maturing and evolving investment landscape in Rwanda. The bank's strategic focus on growth, technology, and customer-centric solutions positions it well for the future, amidst both industry challenges and opportunities.