BTCI’s privatization is official, it is now IB Bank Togo

Banking

Tuesday, 14 December 2021 15:44

BTCI’s privatization is official, it is now IB Bank Togo

(Togo First) - BTCI, a fully public Togolese bank, has been officially privatized. It is now part of IB Holding, which is owned by Malian construction mogul Mahamadou Bonkoungou.

Announced last August by the council of ministers, the deal was approved on September 20th by WAEMU’s banking commission. On November 11, the ministry of finance, in a decree obtained by Togo First, authorized the change of ownership and the change of corporate name. According to this decree, IB Holding acquired 90% of the bank’s shareholding, leaving the remaining 10% stake to the State. However, the amount of the deal was not disclosed.

The decree also specifies that IB Holding’s management must finalize two capital increases equivalent to CFA20 billion before the year ends. This would bring BTCI’s capital to CFA27 billion, thus above the prudential requirements.

Another clause states that Mamadou Bonkoungou has to transfer, latest by June 30, 2022, holdings of his largest subsidiary IB Burkina to IB Holding, a financial company under Togolese law created last June 29 and dedicated to "taking stakes in companies in the banking and financial sector."

It is also required of IB Holding to open up to "other investors with the necessary financial capacity to support its strategy." Mahamadou Bonkoungou has also committed to making available to the group, throughout 2023, CFA10 billion in the form of blocked shareholder account to stabilize the financial health of the group.

While at the end of December 2019, BTCI had negative equity (-11 billion FCFA), Lomé requires a strengthening of the institution's equity by the end of the first half of 2022.

Since November 11, BTCI became International Business Bank Togo or IB bank Togo.

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