Divestment of Esiloans to MiBank
Kina Securities Limited announces the divestment of its Esiloans portfolio to Nationwide Microbank Limited (MiBank)
- The divestment supports the strategic partnership between the two institutions
- Kina Securities has a 15% stake in MiBank
- The decision is in line with Kina’s group strategy to increase financial inclusion in PNG
Kina Securities Limited (ASX:KSL) announced today the divestment of its Esiloans portfolio to Nationwide Microbank Limited (MiBank). The transaction is in line with the strategic partnership between the two institutions to provide greater financial inclusion, increased micro-finance and improved services for small and medium business.
MiBank is the largest microfinance institution in the South Pacific. The Esiloans portfolio aligns with the MiBank brand and the transfer of business will assist MiBank subsidise and expand their financial inclusion programs. Customers will have access to more micro-finance products and services and will benefit from MiBank’s growth priorities for them. Staff serving the Esiloan portfolio will be given the option to transfer to MiBank on the same terms and conditions or remain with Kina.
The Esiloans portfolio at K35m represents only 2.5% of Total Gross Loans.
The divestment is part of the broader strategic partnership which also sees Kina provide POS services, ATM interchange, produce debit cards and offer central bank clearance for MiBank.
Kina Securities Managing Director and CEO, Greg Pawson, said: “Through the transfer of the Esiloans portfolio to MiBank, we’re able to direct our focus on our core target markets of retail, SME and commercial customers, in line with our ANZ PNG acquisition. We will also be able to play an active and constructive role in strengthening the PNG financial services sector by supporting MiBank complete this transformative acquisition. One that will allow MiBank to materially improve its capabilities to offer micro-finance and to secure greater financial inclusion across the country.”
Authorised for lodgement: by Greg Pawson, Chief Executive Officer.