Equity Investment Bank (EIB), a subsidiary of Equity Bank, has entered into a collaborative agreement with global investment services firm, Exotix Partners.
The agreement, which comes as part of Equity’s market development strategy, will enable both the firms to work together on their respective research, sales and trading platforms.
Under the terms of the agreement, EIB will execute Kenya and East Africa fixed income and equity trades for Exotix’s international and regional institutional clients and EIB’s equity and fixed income sales team will be merged with Exotix’s Global Frontier sales teams.
The deal will see the EIB research team integrating into the wider research team of Exotix and adopting a sector specialist research approach across East Africa.
As part of the transaction, both the firms have agreed to co-brand all research published under the partnership, including all current East African research published by Exotix as well as expand capital market advisory services in the East Africa region.
Additionally, the deal will enable EIB to leverage Exotix’s international distribution capability on East Africa research thereby giving EIB global reach and visibility.
The transaction is subject to local regulatory approvals and financial terms of the deal have not been disclosed.
James Mwangi, managing director and CEO, Equity Bank Group, said: "This collaboration will drive Equity Investment Bank’s ambitious agenda to become a leading brokerage and investment banking firm in Kenya and East Africa serving local and international institutional investors alongside local retail investors."
Phillip Southwell, CEO of Exotix, said: Partnering with a leading East African bank, with such a strong position in Kenya, is a logical next step in our growth strategy. This move will build on Exotix’s existing African capability, and make the most of our existing offering."
Ali Khalpey, global head of equities of Exotix, said: "I am delighted to announce this collaboration with Equity Bank, and look forward to meeting the demand for our compelling offering in East Africa. This is a strong signal of our intent to grow in Africa and Frontier Markets, following the recent expansion of our equities team across research, sales and trading."