The Zambia National Commercial Bank (Zanaco) will float stock on the Lusaka
Stock Exchange on in November in the hope of raising 26 million US dollars.


LUSAKA, ZAMBIA (OCTOBER 1, 2008) REUTERS -
Zambia National Commercial Bank (Zanaco) part-owned and managed by
Rabobank of the Netherlands said on Wednesday (October 1) it would float
shares on the Lusaka Stock Exchange on November 17, and hopes to raise 119
billion kwacha (25.78 million US dollars).
Zanaco is majority owned by the Zambian government, 49 percent is held
by Rabobank with management control and 0.2 percent is held by minority
shareholders.
Mark Wiessing, managing director of Zanaco, said the funds raised
through the initial public offer (IPO) would increase the bank's capital base
and also go towards restructuring, expansion and growth of what is the
country's largest retail bank by branch network.
"The bank was partially privatised last year with the government
of the Republic of Zambia selling 49 percent of the shares of ZANACO to
Rabobank after an international competitive tender. The privatisation was
expected to help the bank as a full service retail bank with a rural and urban
presence serving the needs of all Zambians and we have now arrived in the
second and final stage of the privatisation of ZANACO. This stage consists of
selling of a further 25.8 of the bank to the Zambian public in line with the
Zambia privatisation trust fund," said Wiessing.
After the IPO, Rabobank will keep its stake and management control.

The Zambian government will reduce its interest to 25 percent and the
Zambian public will own a 26 percent stake.
Rabobank would also reduce its stake by offering shares to farmers. The
bank is in talks with the Zambia National Farmers Union on a possible sale of
4.0 percent of its stake.
"It is worthwhile to recall that Rabobank is also in discussion
with the Zambia National Farmers Union on a possible sale of four percent of
its stake which will reduce the Rabobank stake to 45 percent as originally
also intended by the parties," said Wiessing.
Wiessing added that Zambia's financial markets have been growing strong
at between 20-30 percent in assets and revenues, which provided an opportunity
for people to use banking services.
Zanaco has already introduced mobile telephone banking in Zambia and
plans to introduce internet banking and other products to improve service
delivery to the customers.