Rand Merchant Bank (RMB) had, through its parent FirstRand Bank, secured an investment banking licence from the Central Bank of Nigeria with an initial capital investment of $100 million (R887m), the investment bank confirmed yesterday.
RMB has been operating in Nigeria from a representative office since January 2010 and is already a meaningful player in the Nigerian investment banking sector. Alan Pullinger, the chief executive of RMB, says the licence will allow RMB to rapidly build out its franchise, provide products and services to the corporate and institutional client segments and employ talented bankers in the country.
FirstRand chief executive Sizwe Nxasana said that this development was in line with FirstRand’s strategy to build a presence in high-growth markets.
“This move is consistent with our strategy as we often enter a new market through the appropriate operating franchise, in this case RMB, and the rest of the banking group may then follow.”
RMB shares closed 0.7 percent down at R38.35 yesterday and FirstRand ended 1.5 percent lower at R28.93. – Staff reporter