Unguka Investment Group, Incofin and Progression Eastern Africa Microfinance Equity Fund (together, the “Shareholders”) have sold a controlling stake in Unguka Bank Plc (“Unguka Bank”), a leading microfinance bank in Rwanda, to LOLC Mauritius Holdings Limited, a subsidiary of LOLC Holdings Plc (“LOLC”).

Verdant Capital (IMAP South Africa) is pleased to have acted as the financial advisor to the Shareholders for this transaction.

Unguka Bank was founded in 2005 and operates as a microfinance bank with 14 branches across Rwanda. The bank offers a broad range of products and services which include loans, savings, and other offerings such as money transfer services. Key focus areas include SME lending which accounts for over 60% of Unguka Bank’s loan portfolio and other loan products such as micro-lending products, and personal and agricultural loans.

LOLC Holdings Plc is a Sri Lankan conglomerate listed on the Colombo Stock Exchange. Originally starting as a non-banking financial company, LOLC has grown into a leading Asian conglomerate with a footprint across Asia. LOLC has identified Africa as a focus region and the acquisition of Unguka Bank fits with this strategy. The transaction with LOLC highlights Verdant Capital’s expertise brining leading strategic investors from our outside Africa into processes the firm manages for its clients.

The transaction reinforces Verdant Capital’s position as a leading advisor to private equity clients in Africa, builds on its competence in advising on transactions in the financial institutions sector.