The National Bank of Canada (NBC) has snapped a 9.5% stake in AfrAsia Bank Limited (ABL), the major shareholder in AfrAsia Bank Zimbabwe.
The move is expected to support ABL’s efforts to revive its local unit which has been facing liquidity constraints with depositors failing to withdraw their monies.
ABL said that getting NBC as a shareholder would provide a boost to its growth plans and strategic vision, and would support its initiatives to have new shareholders on board for its Zimbabwe operations.
James Benoit, CEO of ABL said, "While this strategic partnership may not translate immediately into an injection of liquidity, it shows our faith in the Zimbabwean economy and country, and we shall continue to pursue avenues to grow our business here."
"This partnership will give us an impetus for further growth and will reinforce the position of AfrAsia Bank in international markets," added Benoit.
NBC offers financial services to retail, commercial, corporate and institutional clients and offers a various services, including banking and investment solutions, securities brokerage, insurance and wealth management.