FNB Eswatini increases Eswatini Stock Exchange’s (ESE) market capital by 42.2 per cent to reach E6.7 billion overnight. This was shared at the FNB Eswatini Listing on the stock exchange event held at the bank’s headquarters in Ezulwini.
On December 4, 2023, FNB Eswatini listed 100 per cent of its shares on the ESE and issued 24. 99 per cent of six organizations and the bank’s employees. Before reaching 6.7 billion, the ESE market capital was at E4.7 billion.
ESE Chief Executive Officer (CEO) Joyce Dlamini said having the bank listing on the exchange meant a lot to them as more local organizations will now want to list at ESE.
Dlamini stated that the journey to listing the bank wouldn’t have been a success if all the relevant institutions didn’t come together to collaborate.
She said as the exchange there were many initiatives that they were doing not only locally but even at the regional level and continental level.
“My challenge to FNB is to consider maximizing their capital structure by bringing in debts to your capital structure needs. As an exchange they were encouraging the listing of green for sustainability grants,” she said.
FNB Eswatini CEO Dennis Mbingo said the success of the investments is now on the investors and the roles that they will play in collaborating with the bank in terms of finding new business opportunities.
He stated that as a bank they took this milestone seriously and respected its value as they knew the role it would play in improving the country’s economy.
Initiatives
The CEO said for them it has been an extremely busy year that has involved the parallel management of multiple large scale initiatives on many fronts, including the completion of this main campus and coordination of major operational deliverables that are meant to overhaul the bank and significantly enhance our Customer Experience.
He stated that whilst the executive team would readily admit that these operational outcomes have stretched everyone, none has matched the complexity, attention to detail, and relationship building that has been required to have FNB Eswatini listed on the local Stock Exchange.
“We have made many new friends, tested the depth and patience of a few old friends, and gave many people we may not have even spoken to sleepless nights in helping to review and approve this project,” he said.
Mbingo said they have worked hard as a team to ensure that we strengthen the balance sheet and that we create a strong base for sustainable earnings growth.
“We would like to assure our new shareholders and our regulators that the Management team recognizes its obligation to all stakeholders to maintain and build upon the hard work of prior years,” he said.
The CEO added that they were planning more products, access to more customers, and a banking experience that would be second to none.
He said they have always said that they do not set out to seek profit, but profit is the fruit of doing the right things the right way, living their promise of HELP to customers, and bringing our community along through the many initiatives we support.
“Being a well-established bank in Eswatini with a 28-year track record, and one that is a proud member of the First Rand Group, we can assure the investment community and the public at large that the values and work ethic that has brought us this far shall be maintained,” he assured.
He further expressed the bank’s deep appreciation to the FirstRand Group for considering the collective of FNB Eswatini employees as beneficiaries of this transaction through the shareholding of the FNB Eswatini Employee Share Trust.
He stated that FirstRand has allocated 4.99 per cent of the issued capital of FNB Eswatini, which amounts to 6 636 700 shares valued at E98.4 million.
Meanwhile, Central Bank Eswatini (CBE) Deputy Governor Felicia Dlamini-Kunene said what FNB has done was important as it allows other emaSwati to own a strong and successful financial institution.
She expressed gratitude that not only has the bank decided to sell 20 per cent to emaSwati investors, but it has also made a commitment to allocate 4.99 per cent to employees of the bank, and then list the entire share capital on the ESE.
The deputy governor stated that the presence of the CBE today is not just a regulator to FNB Eswatini, as it was the CBE, together with the Ministry of Finance, that identified FNB as a prospective investor in the country through an advisory team hired by the CBE.
She also acknowledged FirstRand Limited, who through FirstRand EMA Holdings (Pty) Ltd, found the courage and the confidence to support this transaction.
“I am referring to courage because they did this without the pressure of legislation or regulation, and they did it at a time when the bank was performing very well,” she said.
She added that it was a common human practice to keep and protect what is valuable, but FirstRand was open to the possibility of new shareholders who were not only emaSwati but representative of a large base of participants in this economy.
She said they acknowledged this courage and the direct appeal to a deserving investor base.
© Eswatini Daily News