Kina Takes 15% Stake In MiBank Partnership
Kina Bank has taken a 15 per cent stake in MiBank partnership by making a capital investment K2.5 million into microfinance institution MiBank.
Kina and MiBank jointly announced they are looking to working together in a strategic partnership to empower and significantly help the expansion of financial inclusion in the country.
Kina bank CEO Greg Pawson said they are pleased to announce that Kina bank will acquire a 15 per cent stake or shareholding in MiBank.
Mr Pawson said with Kina is going through a significant transformation June in 2018 when it acquired ANZ’s retail and commercial business, it is at the final stages of completing that transaction.
“As we have worked through that particular program and thought of about our strategic plan moving forward, one of the gaps we have always been conscious of or identified is that we haven’t actually been doing a great deal around financial inclusion and many Papua New Guineans know today that still remains quite a significant problem with over seven percent of PNG still unable to access banking and financial services.”
“So as a dualistic financial services company in PNG, we are on the Australian stock exchange and also on PNG X; we felt we have the moral and social obligations to certainly be thinking about financial inclusion and what we can do for the betterment of our Papua New Guineans moving forward,” said Mr Pawson.
“Thus, the decision ultimately rather than us building something for our self, we work partner with existing organisations or banks that are already does exceptionally well. So for the past several months we have been talking with MiBank about developing strategic partnerships that we could work together and hopefully deliver more financial inclusions for Papua New Guineans across the country.”
Mr Pawson in a statement released also stated that this is an important milestone for both our organisations and for PNG. “Our aspiration is to be PNG’s leading digital bank so we are making a huge investment in new technology hence, we will share this technology with MiBank to support their growth and expansion for the benefit of all Papua New Guineans.”
Mr Pawson stated that they will be able to offer MiBank customers access to debit cards and our nationwide ATM network. MiBank CEO Tony Westaway said they (MiBank) are very thrilled and welcome this investment by Kina bank.
“We are 100 per cent Papua New Guinean owned company and our target market segment is those citizens that are at the bottom of the economic pyramid like women, subsistence farmers, rural dwellers and those in the informal sector. “And our mission is to go out and bank those people and bring them into the formal financial services sector and make them grow economically,” Mr Westaway said.
“And this partnership is very important for us as we move forward and work in partnerships with Kina bank.”
“So is a win-win situation and we are looking forward for the many opportunities the partnerships will bring to the customers of both organisations.”
The investment will see the two financial institutions enter into a mutual referral agreement for respective customers.
Under this agreement, Kina bank will refer small to medium enterprises (SMEs) falling outside of its customer limits to MiBank while MiBank will also refer SMEs who have lending requirements exceeding MiBank limits to Kina bank. Under the agreement Kina bank will subscribe for 2,239,148 ordinary shares to be issued by MiBank worth K2,575,020 which represent a 15 per cent stake.
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