(Ecofin Agency) – In three years, BIIC has established itself as a major player in the Beninese banking sector. For the State, it is the time to sell part of its shares in its flagship bank with up to 121 billion FCFA ($191.7 million) in expected revenues, to finance the development program. This is the second OPV that Benin has launched in 3 months.
After having successfully listed the Benin National Lottery (LNB), the Beninese State is continuing its transformation by opening up to 40% of the capital of the International Bank for Industry and Commerce (BIIC) to the general public.
In this operation, the State will sell between 30.4% and 40% of the shares it holds in BIIC, or from 17.56 to 23.1 million shares. Set at 5,250 FCFA per share, the total expected amount oscillates between 92 and 121 billion FCFA ($145 million to $191.7 million). A significant sum for a bank that has become, in less than three years, a juggernaut of the Beninese financial landscape.
A meteoric rise
In Benin, BIIC, born in 2020 from the merger between the former International Bank of Benin (BIBE) and the African Bank for Industry and Commerce (BAIC), has established itself as a key player. With total assets of 1,411 billion FCFA as of June 30, 2024, it now represents 22% of the country's banking assets, far ahead of its main competitor, BOA, which holds 14%.
Its dominance also extends to loans and deposits. BIIC grants 23% of the sector's banking outstandings, or 739 billion FCFA, and captures 21% of funds collected from customers, for a total of 889 billion FCFA. These figures reflect a sustained growth dynamic: in three years, the bank's assets have more than doubled (+125%), going from 627 billion FCFA in 2021 to their current level of 1,411 billion FCFA.
With equity of 107.9 billion FCFA, or 21% of the sector's equity, BIIC is the second best capitalized bank in the country. It now directly competes with the BOA and could overtake it by the end of the year.
BOA, listed on the Regional Securities Exchange (BRVM), is showing signs of running out of steam, particularly in its half-year results. A weakness which could benefit the BIIC which displays robust indicators. Its net banking income jumped, and its net profit increased from 5.7 billion FCFA in 2021 to 10.7 billion FCFA in 2022, before reaching 27.2 billion FCFA in 2023, an average annual increase of 117%. .
A bet on the future
With this public sales offer (OPV) which will open on January 13, 2025, the State hopes to attract a wide range of investors, both local and international. If everything goes as planned, BIIC's shareholding will be fundamentally overhauled. The Beninese State, which currently holds 51% of the shares, could see its participation fall to 11.26%. The general public, for its part, could become the majority shareholder with up to 40% of the shares, while the Caisse des Dépôts et Consignations du Bénin and the National Social Security Fund would retain their respective positions at 32% and 13%. .
The first listing of shares on the BRVM is expected from the first week of March 2025. For the Beninese State, this partial transfer of shares meets several objectives: “promote transparency in financial operations, stimulate the regional stock market and further involve the private sector in BIIC shareholding. It also constitutes a means of mobilizing financial resources without resorting to debt, in order to support structuring projects for the benefit of the national economy and the well-being of the populations.”
By investing in BIIC, subscribers will be banking on a bank firmly anchored in the Beninese economy, which could also see its assets greatly increased by a possible merger with Société Générale. An agreement provides for a repurchase of the French giant's shares by the Beninese state, which could add nearly 300 billion FCFA in assets, a portfolio of 212 billion FCFA in loans and 209 billion FCFA in deposits at the BIIC. A key player in financing businesses and households, BIIC is also a leader in the public securities market in Benin where it manages a portfolio of 600 billion FCFA, or 22% of the total held by banks.
Fiacre E. Kakpo
Edited by MF Vahid Codjia
