BONI is confident agreement will soon reached over Investrust to ensure Zambia’s international reputation remains intact

Advanced discussions between BONI, Afreximbank and Investrust Senior Management to secure the investment were already in place and shared with ZCCM-IH, the largest shareholder of Investrust
LUSAKA, Zambia, December 9, 2024/ — International bank BONI (www.BONILtd.com) notes media coverage around the Company’s historical investment in Investrust Bank Plc (“Investrust”), a bank based in Zambia.

It has been widely reported and acknowledged by the Bank of Zambia, that regulatory delays meant BONI was never recognised as a shareholder in Investrust. This despite more than three years elapsing following the first purchase of shares.

Had BONI been allowed to take up an Investrust Board seat, to which it should have been entitled, new capital would have been brought into Investrust. Advanced discussions between BONI, Afreximbank and Investrust Senior Management to secure the investment were already in place and shared with ZCCM-IH, the largest shareholder of Investrust. This would have averted any crisis at Investrust at no cost to Government or the sacking of staff and disruption of so many lives.

BONI now sits at the centre of a dilemma. Despite purchase of shares since 2021 through registered broker Pangea Securities Limited on the Lusaka Securities Exchange (LuSE), the Bank of Zambia advised BONI, some three years later it is not and was never recognised as a shareholder.

Regarding the transaction, a spokesperson for BONI, said:

“The facts in the public domain are that BONI between 2021 and 2022, bought through a licensed regulated broker, Pangae Securities Limited, a significant shareholding in Investrust through the Lusaka Securities Exchange.

“We are sensitive to the plight of the really hard-working professionals at Investrust that we’ve gotten to know over the years. Our prayers are with them and we wish each of them well.

“What is clear here is that a mistake was made. We are in communication with relevant stakeholders and are confident that mechanisms for BONI to be fully compensated will be agreed by year end.

“It is important that a line is drawn under this matter. Investors must feel comfortable and confident that their investment in Zambia remain safe and safe, at all times. Mr President has done a extraordinary job galvanising and reassuring the investment community that Zambia is open for business. His efforts underpin the current investment momentum Zambia is enjoying. This incident must not be allowed to fester and or pollute that investment narrative.”

Regarding investing in Zambia:

“Its land-linked attributes and stable political environment, makes Zambia an extraordinary hub and provides an opportunity to reach 380 million regional consumers with its eight direct neighbours alone. These attributes were front and centre of our thinking when considering Investrust as an investment proposition.”

Zambia is ‘open for business’. That carries a responsibility to shield investors from being caught in the cross-fire of regulatory mistakes that call into question the fair treatment of investors and their investments, as well as the healthy operation of the Securities Exchange (LuSE) and the Securities Commission. Perception for investors is everything.
Distributed by APO Group on behalf of BONI.
Notes to Editors:
The timeline of BONI Ltd.’s investment in Investrust Bank Plc is as follows:
In March 2021 BONI begins buying shares in Investrust on the Lusaka Securities Exchange (LUSE), via registered broker Pangaea Securities Limited.
November 2022 BONI completes its share purchases in Investrust, believing that it held 1,991,288 shares, or 24.4% of Investrust.
In line with what it believed to be a significant shareholding (over 10% according to LUSE rules) BONI sought to nominate a Board Director to Investrust and attend Board meetings but was never allowed to do so.
In April 2024 it was announced that the Bank of Zambia was taking possession of Investrust and that it would enter an insolvency process. Investrust Staff challenges this decision in the High court of Zambia.
In July 2024 Investrust’s branches and accounts were absorbed by Zambia Industrial Commercial Bank Limited (ZICB).
In December 2024 the Bank of Zambia sought legal permission to serve proceedings on all shareholders of Investrust.
SOURCE
BONI