Cavmont Bank

Cavmont Bank Limited was a commercial bank headquartered in Lusaka, Zambia, and licensed by the Bank of Zambia, the country's central bank and banking regulator. The institution was created on 1 January 2004 through the merger of Cavmont Merchant Bank Limited and New Capital Bank Plc. The two predecessor institutions had been incorporated in 1992, giving the combined bank roots in Zambia's merchant- and commercial-banking sector. The bank operated across several customer segments. Its stated activities included community banking, retail banking, investment banking and corporate banking. This placed Cavmont within the group of locally focused Zambian financial institutions offering deposit accounts, lending, transaction services and business-banking support rather than operating as a narrowly specialized investment or payments company. Publicly documented branch locations indicate a broad domestic footprint, with branches and agencies in Lusaka and in multiple provincial centres, including the Copperbelt, Eastern, Northern, Luapula and North-Western provinces. Cavmont's corporate structure was connected to Capricorn Investment Holdings, a Southern African financial-services investment group with interests in Zambia, Namibia and Botswana. Cavmont Bank was held through Cavmont Capital Holdings Zambia Plc. Capricorn Investment Holdings became a strategic investor in the holding company after acquiring a 44.2 percent interest in 2007. The investment was associated with a recapitalization programme and a repositioning of the bank. The holding company subsequently remained an important part of the ownership and governance framework surrounding Cavmont. Capital adequacy and ownership structure were recurring strategic issues in the bank's development. Following changes to Bank of Zambia capitalization requirements for local and foreign-owned banks, the holding company arranged for 51 percent of its shares to be warehoused in Makumbi Investments Limited, a special-purpose vehicle intended to facilitate an offer to local investors. By the end of 2013, the bank was reported to have met the applicable equity ownership and capital requirements for local banks. The bank's main office and principal branch were located at Cavmont House in Piziya Office Park on Thabo Mbeki Road in Lusaka. Its documented network also included Lusaka Square, Tazara, Kalingalinga, Garden and Industrial branches in Lusaka, as well as locations in Mansa, Mwense, Chipata, Ndola, Kitwe, Chingola, Chililabombwe, Mbala, Mpulungu, Kasama, Solwezi and Mufumbwe. This network suggests an emphasis on accessible domestic banking and service to individuals, small businesses and corporate clients outside the capital. Public information gives a snapshot of the bank's scale in 2016. In June of that year, Cavmont was described as a retail bank with assets of approximately ZMW 946.8 million and shareholders' equity of about ZMW 118.1 million, while employing 245 people. By December 2016, reported total assets had risen to approximately ZMW 1.064 billion. These figures are historical and should not be treated as a measure of the bank's current financial position. Available reference material does not establish the institution's present operating status, successor arrangements or current ownership, so those points require verification against current regulatory or corporate records.

Cavmont Bank was formed on 1 January 2004 through the combination of Cavmont Merchant Bank Limited and New Capital Bank Plc. The predecessor companies had both been incorporated in 1992: Cavmont Merchant Bank in October and New Capital Bank in June. The merger created a Zambian commercial bank with a broader platform for retail, community, corporate and investment banking. In 2006, Cavmont's holding company, Cavmont Capital Holdings Zambia Plc, began seeking a strategic investment partner. It identified Capricorn Investment Holdings Limited, a Southern African financial-services group with interests in Namibia, Botswana and Zambia. Capricorn acquired a 44.2 percent interest in the holding company in 2007. During the same period, discussions with the Bank of Zambia concerning recapitalization were completed, and Capricorn underwrote a rights issue. The holding company raised more than K15.4 billion in additional share capital, after which the bank began a repositioning programme. The bank's ownership and capital structure later had to accommodate revised Bank of Zambia requirements applying to local and foreign banks. To support compliance with local ownership rules, 51 percent of the holding company's shares was warehoused in Makumbi Investments Limited, a special-purpose vehicle intended for a forward offer to local investors. By 31 December 2013, Cavmont was reported to have met the equity ownership and capital requirements applicable to local banks. Cavmont developed a domestic branch network centred on Lusaka and extending to several provincial towns. By May 2018, documented locations included the head office and Makumbi Commercial Branch at Cavmont House in Piziya Office Park, together with branches in Lusaka, Mansa, Mwense, Chipata, Ndola, Kitwe, Chingola, Chililabombwe, Mbala, Mpulungu, Kasama, Solwezi and Mufumbwe. The network included a Kitwe agency in addition to full branches. The bank's historical scale was illustrated by figures reported for 2016. In June, it was described as a retail bank with total assets of ZMW 946.8 million, shareholders' equity of ZMW 118.1 million and 245 employees. Reported assets had increased to ZMW 1.064 billion by December 2016. These figures are historical snapshots rather than current financial information. Cavmont was part of the wider Capricorn Group structure. Capricorn Investment Holdings held interests in financial institutions in Zambia, Namibia and Botswana, including Bank Windhoek in Namibia and Bank Gaborone in Botswana. Reference material identifies Cavmont Bank as a subsidiary of Cavmont Capital Holdings Zambia Plc, while also describing Capricorn's strategic interest in the holding company. The available material does not conclusively establish the bank's current status, any later merger or acquisition, or whether its historical branch network remains active.

1. 2018Branch network documented across Zambia

   A May branch listing recorded locations in Lusaka and a range of provincial towns, including a Kitwe agency.

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2. 2016Assets surpass one billion Zambian kwacha

   Reported total assets rose from ZMW 946.8 million in June to approximately ZMW 1.064 billion in December.

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3. 2013Local-bank capital requirements reported as satisfied

   By 31 December, Cavmont was reported to have met the applicable equity ownership and capital requirements for local banks.

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4. 2007Capricorn becomes strategic investor

   Capricorn Investment Holdings acquired a 44.2 percent stake in Cavmont Capital Holdings Zambia and underwrote a recapitalization rights issue.

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5. 2004Cavmont Bank established through merger

   Cavmont Merchant Bank and New Capital Bank combined to form Cavmont Bank on 1 January.

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6. 1992Predecessor institutions incorporated

   Cavmont Merchant Bank Limited was incorporated in October, while New Capital Bank Plc was incorporated in June.

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A locally focused Zambian commercial bank combining retail, community, corporate and investment-banking services with a multi-city branch network.

• Retail bankingPersonal banking

  Cavmont's retail-banking business served individual customers through deposits, everyday transaction services and lending-related products. The bank was described as a retail bank in 2016, and its branch network supported delivery in Lusaka and provincial centres. Specific account names, fees and product terms are not identified in the available reference material.

• Community bankingCommunity banking

  Community banking was one of the business areas publicly associated with Cavmont Bank. It represented the institution's role in extending formal banking access beyond major corporate centres, supported by branches and agencies in a number of Zambian towns. The available sources do not provide a detailed catalogue of community-specific products.

• Corporate bankingBusiness banking

  The corporate-banking offering addressed companies and other institutional customers through business accounts, financing and banking services. Cavmont's corporate activity formed part of a broader commercial-bank model alongside retail, community and investment banking. Detailed loan categories, sector specializations and service-level information are not available in the supplied sources.

• Investment bankingInvestment banking

  Investment banking was included among Cavmont's stated service areas, reflecting the institution's origins in part as a merchant-bank successor. The reference material does not specify particular advisory, underwriting, capital-markets or securities products, so the offering is documented only at the business-line level.

• 2013Adjustment to local ownership and capitalization structureStrategy

  The Bank of Zambia revised capital and ownership requirements for local and foreign banks.

  What changed. Cavmont's holding company warehoused 51 percent of its shares in Makumbi Investments Limited, a special-purpose vehicle intended for a future offer to local investors.

  Aftermath. By the end of 2013, the bank was reported to have met the equity ownership and capital requirements for local banks.

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• 2007Recapitalization and strategic repositioningStrategy

  Cavmont Capital Holdings Zambia sought a strategic investor and held discussions with the Bank of Zambia about strengthening the bank's capital base.

  What changed. Capricorn Investment Holdings acquired a substantial holding in the parent company and underwrote a rights issue that raised more than K15.4 billion in additional share capital.

  Aftermath. The transaction supported a repositioning of Cavmont Bank and established Capricorn as a significant strategic participant in its ownership structure.

  Additional share capital raised. More than K15.4 billion (2007)

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1. Cavmont Bank