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Amhara Bank Secures 90.6min Share in ESX

ADDIS ABABA – Amhara Bank purchased a 90.7 million Birr share in the Ethiopian Securities Exchange (ECX) as the nascent bourse continues to attract more private investors.

Amhara is now the sixth equity acquirer from the banking industry after Awash, Hibret, Global, Siinqee and Zemen banks.

ESX, established as a share company by the government and private sector, has actively engaged in a roadshow, aiming to raise 625 million Birr from the private sector.

In recent days, the Exchange was able to attract a significant number of investors particularly from the insurance industry.

Lion Insurance purchased a 10 million birr equity share on Thursday, becoming the third private insurer to acquire a stake this week after Zemen and United.

On Friday, the Exchange’s roadshow bid received a major boost, reaching a 90.6 million Birr equity investment deal with Amhara Bank.

The acquisition, which allowed Amhara Bank to hold a 10% stake in the ESX, is the highest of all private financial institutions, to date.

Amhara bank secures 10 percent equity share in the Exchange
Amhara Bank secures 10 percent equity share in the Exchange

The Exchange said the investment signals “a significant step towards strengthening” Ethiopia’s capital markets.

The Private sector will have a 75% share in the Exchange with an issued capital share of about 900 million Birr.

The remaining 25 percent has already been secured from Ethiopian Investment Holdings (EIH) and four of its subsidiaries.

The Exchange aims to launch a secondary market in the country at the end of the current fiscal year with its trading floor set to be located in the former Ethiopian Broadcasting Corporation Building.

The Corporation handed over the building, located at the center of Addis Ababa, to the Ethiopian Capital Market Authority (ECMA), ESX and EIH.

“Renovations to tailor the building to our needs while preserving its historic structure will begin shortly,” ECMA said on Friday.

The building, apart from serving as the future exchange trading floor, will house the head offices of EIH and ECMA.