Bank to buy shares worth K2.5m

KINA Bank Ltd will purchase 2,239,148 ordinary shares worth K2.5 million representing a 15 per cent stake in MiBank.
This was jointly announced on Friday by Kina Bank chief executive officer Greg Pawson and MiBank CEO Tony Westaway.
According to statements from both banks, through this acquisition, Kina Bank intends to significantly help the expansion of financial inclusion in the country.
In welcoming the investment, Westaway said MiBank had been working in the financial inclusion space for more than 10 years and had a strong focus on women and low income earners.
“This investment by Kina Bank recognises that MiBank is at the forefront of providing inclusive financial services, and as result believes MiBank is the right institution to partner with,” he said.
Westaway said both banks were digitally aware and there was an opportunity for both organisations to leverage off each other’s platforms for mutual benefit.
“The opportunity for MiBank to collaborate with a larger commercial bank can only add value for MiBank’s customers, in terms of the number of financial services access points and latest technology,” westaway said.
Meanwhile, Pawson said this was an important milestone for both organisations and for the country.
“Our aspiration is to be PNG’s leading digital bank so we’re making a huge investment in new technology,” he said.
“We’ll share this technology with MiBank to support their growth and expansion – for the benefit of all Papua New Guineans. We’ll be able to offer MiBank customers access to debit cards and our nationwide automated teller machine (ATM) network.”
The investment would see the two financial institutions enter into a mutual referral agreement for respective customers.
Under this agreement Kina Bank would refer micro and small enterprises, falling outside its customer limits, to MiBank.
While MiBank would refer small medium enterprises (SMEs) who have lending requirements exceeding MiBank’s limits to Kina Bank.
The referral process creates a graduation pathway for businesses to help them grow and become more successful.
Under the agreement, Kina Bank would subscribe for 2,239,148 ordinary shares to be issued by MiBank, for consideration of K2,575,020.
The Bank of PNG has provided regulatory approval for the two banks to effect the transaction.