Dfcu Bank’s pioneering shareholder CDC Group, has after 6 years, completed sale of all its shares in the leading Ugandan bank.
The British development finance institution announced Friday that it had sold its remaining 9.97% stake in dfcu Limited (“DFCU”) to IFU, a Danish development finance institution.
CDC made its first investment in DFCU in 1964 as a founding partner to the bank and has played an integral role in its long-term growth over the last six decades, through a number of equity and debt funding rounds.
In that period DFCU has grown to become a major player in the Ugandan banking sector, a champion of SMEs and a committed supporter of financial inclusion and female entrepreneurship through a Women in Business programme created by CDC. CDC however, has been reducing its stake in DFCU over the last six years – from 60% to 15% in 2013 and then to just under 10% in 2017 following a rights issue at the bank.
Speaking on the sale of the shares today, CDC’s Chief Executive, Nick O’Donohoe said their investment in Dfcu had been demonstrably successful.
“Our partnership with DFCU has perfectly demonstrated our credentials as a provider of patient capital. And I am delighted that in IFU, we are passing the baton to a like-minded investor that, alongside Arise, the largest existing shareholder in DFCU, will be as equally committed to DFCU’s long-term stability and success,” he said.
“DFCU is now a stalwart of the Ugandan economy so we felt it was the appropriate time to deploy our capital elsewhere. Uganda is an incredibly important country for CDC and we look forward to the opportunity to reinvest the proceeds from the sale of our DFCU stake into other businesses here.”
On his part, IFU´s Chief Executive Officer, Torben Huss expressed optimism about their new venture.
“IFU is pleased to become a shareholder in DFCU as we share the ambition to expand access to financial services, which will lead to productive investments, the creation of decent jobs and improve people’s welfare. Moreover, we see this acquisition as a strategic step to increase our engagement in the private sector in Uganda and further promote the Sustainable Development Goals.
Dfcu Board Chairman Elly Karuhanga, hailed the bank’s contribution to the economic development and transformation of Uganda, over the last 55 years, which he said was thanks largely to the shareholders.
With IFU as one of the shareholders, we are confident that dfcu is […]