GETBUCKS Microfinance Bank (GetBucks) which recently approached the Reserve Bank of Zimbabwe for extension of the December 31, 2021 deadline for the compliance with the regulatory US$5million minimum capital requirement, is scrambling for new financing amid revelations it has approached another listed financial services group for a bail out facility.
Legal secretary Wimbayi Chigumbu recently indicated that they were pursuing quite a number of options, including equity transactions, to fix the capital gap.
“Given the limited amount of time until December 2021 it is unlikely that the regulatory capital will be met and the regulator has been approached with a request to extend the deadline,” he said in a recent trading update.
Company managing director George Nheweyembwa could not comment on the development.
Another firm closely linked to Getbucks, Harava Solar, is also reported to be battling liquidation by approaching the courts to halt an in-situ sale or auctioning of its assets and Arden Capital (Arden) – formerly Brainworks Limited – has recently filed for voluntary bankruptcy and a delisting in South Africa.
With an inflation-adjusted regulatory capital base of $192million as at September, GetBucks has joined a few other institutions by approaching the Reserve Bank of Zimbabwe for a reprieve over its US$5 million minimum capital-adequacy and requirement for deposit-taking micro lenders.
For its third quarter, Chigumbu said the company had recorded a revenue of $170 million, although its after tax profit had fallen by 49 percent to $17 million – and a decrease from the $30 million in the comparative period.
However, GetBucks was hoping to leverage on its foreign currency trading licence – granted in 2020 – to broaden its earnings and income.