BGFIBank Eyes IPO, Aims for Image Reboot After Leak

Key Takeaway

• BGFIBank plans IPO, floating 5-10% of shares on Central Africa Stock Exchange, to rebuild image after 2021 data breach.
• Achieved anti-money laundering certification in 2022, enhancing compliance and transparency across its operations.
• Expanding in Africa with strategic acquisitions; reported a 9% growth in assets to $8.7 billion in 2023.

BGFIBank's IPO Ambitions

BGFIBank Group S.A., a leading bank in central Africa, is revisiting its plans for an initial public offering (IPO) as part of its strategy to enhance its public image, which was tarnished by a significant data breach in 2021. The Gabon-based financial institution, which is among the largest in the region, initially considered going public in 2019, but the plan was postponed due to the global pandemic. The proposed IPO aims to demonstrate the bank's commitment to reform and transparency following the leak, which exposed the misuse of its Congolese unit for siphoning state funds to associates of the former President Joseph Kabila. CEO Henri-Claude Oyima emphasized the bank's efforts in bolstering anti-money laundering protocols and enhancing security measures. The IPO could see the bank floating between 5% and 10% of its shares on the Central Africa Stock Exchange (BVMAC) in Douala, Cameroon.

Strengthening Compliance and Transparency

Following the data leak, BGFIBank has undertaken significant steps to revamp its image and operations. The bank achieved an anti-money laundering certification in 2022, a move that Oyima describes as putting on "a new face" for the bank. This certification extends to its subsidiaries across Gabon, Ivory Coast, Senegal, Cameroon, Republic of Congo, France, and Equatorial Guinea, with the remaining units in the process of obtaining the same. The initiative underscores BGFIBank's commitment to compliance and operational integrity, reflecting a broader effort to restore stakeholder confidence.

Strategic Expansion and Financial Performance

Amidst a backdrop of retreating European banks from Africa, BGFIBank is seizing the opportunity to expand its footprint on the continent. The bank is exploring acquisitions and equity deals in the Democratic Republic of Congo, Cameroon, and Ivory Coast to bolster its market share. This expansion strategy is part of BGFIBank's broader vision to develop financial products "by Africans, for Africans," leveraging its understanding of local markets and risk. Financially, the bank reported a 9% growth in assets to 5.3 trillion CFA francs ($8.7 billion) in 2023, with net banking income and net interest income also seeing significant increases. These figures reflect the bank's robust financial health and strategic positioning for growth.

Management Quotes

• Henri-Claude Oyima, CEO of BGFIBank Group S.A.:

  "We put in place measures to combat money laundering, review security and tighten controls." "An anti-money laundering certification in 2022 has since allowed the bank to put on a new face." "The move is more about showing the bank’s transparency than about raising capital. We have enough equity capital." "Part of the capital will be deployed to complete payment to the Republic of Congo for Societe General Congo... If the deal is approved by the regulator, the former SocGen asset would be absorbed into BGFIBank Congo by the end of 2024." "We’ll be looking to tap any opportunity that comes up in any of these countries. This could be through an acquisition or through equity." "We’re developing products by Africans and for Africans. We understand the local environment better and appreciate risk differently." "We would love to get a credit rating from a global agency on the strength of our own capacity to repay. But a corporate rating can only be as good as the rating of the country where you are domiciled."