By Our Reporter
British Fund Development Finance Institution (CDC) has sold its remaining shares in Uganda’s Dfcu Bank to a Danish Fund known as Investment Fund for Developing Countries (IFU)
CDC officially announced on Friday that it will be selling all its 9.97% stake in Dfcu Limited (“DFCU”).
CDC made the initial investment in DFCU in 1964 as a founding partner to the bank.
It has over the years made a number of equity and debt funding advancements to the bank, which is now the second-largest in Uganda.
However, the British Fund started getting rid of its shares in the bank over the last six years – from 60% to 15% in 2013 and then to just under 10% in 2017
“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,” said CDC’s Chief Executive, Nick O’Donohoe
“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.”