GetBucks Microfinance Bank Limited is now inviting the company’s existing shareholders to purchase additional new shares also known as right issues as part of a capital raise initiative for the company to continue operating.
The microfinance bank was sitting on a net equity position of ZWL474 million translating to USD4.4 million at the official exchange rate as at 31 December 2021, which is not enough for the company to continue operating under the Reserve Bank of Zimbabwe regulations.
GetBucks Chairman Dr Mbire said, “The capital raised will help the Microfinance Bank address the regulatory minimum capital requirement of USD 5million equivalent.”
The chairman went on to say that the raised capital will also reduce the Microfinance Bank’s cost of funding, as well as capacitate the Microfinance Bank’s expansion drive.
GetBucks recorded a net profit of ZWL192 million in 2021 representing a 366% increase from the prior year’s loss of ZWL 72 million.
Mbire said, “This (net profit) was largely as a result of a reduction in the net monetary loss from ZWL48 million in 2020 to close at net monetary profit of ZWL 25 million in 2021, largely due to the Microfinance Bank’s assets being predominantly monetary.”
The company’s operating expenses increased by 55% during the year under review from ZWL258million to ZWL399million.
Revenue for the year increased by 206% to ZWL588 million compared to ZWL192million for the comparative period.
None of the microfinance institutions operating in Zimbabwe managed to meet the RBZ US$5 million minimum capitalisation requirement when the deadline came.
GetBucks has up until 31 December 2022 to meet the US$5 million minimum capitalisation requirements.
