DAR ES SALAAM, April 29 -- MWALIMU Commercial Bank (MCB) is set to raise 20.4bn/- through a rights issue following regulatory approval, in a move aimed at reinforcing its capital base and accelerating lending growth amid rising competition in the banking sector.

The lender announced that the Capital Markets and Securities Authority (CMSA) has approved the issuance of 185,474,760 new ordinary shares at a price of 110/- each, paving the way for one of the more notable capital-raising exercises in the countrys banking industry this year.

Structured at a ratio of three new shares for every one share held, the offer gives existing shareholders the first right to participate, allowing them to preserve ownership while injecting fresh capital i...