(Ecofin Agency) - BMCE Bank of Africa announced June 26 it has received approval from the Moroccan capital market authority AMMC to increase its capital by MAD1.89 billion ($199 million). The green light was given a week after British development finance agency CDC Group announced it has acquired a near 5% stake in the bank for $200 million.

BMCE will first mobilize a first instalment, including share premium, of MAD897.3 million which will be released exclusively by the full or partial optional conversion of dividends into shares for shareholders. The amount will be raised through the issue of 4.9 million new shares at MAD180 each, split into par value of MAD10 and an issue premium of MAD170 per share.

A second instalment targets MAD1 billion, via a public offering with preferential subscription rights for shareholders. This time, monies will be mobilized through the issue of 5.5 million new shares at MAD180 each. Subscription period is from July 9 to 31.

Let’s note that the capital increase targets four objectives: to enable longstanding shareholders to consolidate stake in the company's capital (if they so wish); to finance the strategic development plan for the period 2019-2021 while supporting the group's growth strategy in Morocco and abroad; to encourage the strengthening of the Bank's equity capital to comply with banking regulatory requirements; and to finance current operations relating to the bank's business.