Kenyan lender Equity Bank has concluded plans to invest KES200bn ($2.2bn) to expand across 10 countries in Africa over the next five years.
The bank has entered into loan agreements for KES36bn ($400m) and has created additional shares worth KES20bn.
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The bank will raise the remaining KES140bn through a rights issue or a secondary initial public offering (IPO).
Equity Bank CEO James Mwangi said: "For acquisition we will give shares in Equity Bank instead of cash.
"In some countries it is difficult to start from scratch because they are too big so we will enter by acquiring a medium-tier bank and upscale it."
Equity Bank will open operations in Ethiopia, Burundi and the Democratic Republic of Congo in the next two years before expanding southwards to Mozambique, Malawi, Zambia and Zimbabwe.
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By GlobalDataThe bank will venture into West Africa after five years, eyeing Nigeria, Ghana and Cameroon.
Mwangi said: "In some countries it is difficult to start from scratch because they are too big so we will enter by acquiring a medium-tier bank and upscale it. For acquisition we will give shares in Equity Bank instead of cash which is why we are asking you to create new shares."
