Sinqee Bank has applied to the Ethiopian Capital Market Authority (ECMA) to establish an investment banking subsidiary with a registered capital of 497 million birr, in what would be its most significant expansion since converting from a microfinance institution three years ago.

The bank, which secured commercial registration from the Ministry of Trade and Regional Integration last week, submitted its application to ECMA on August 15. Approval would make it the third officially registered investment banking firm in Ethiopia’s nascent securities market, following Wegagen Capital and CBE Capital.

According to Addis Fortune, Sinqee will hold a 90 percent stake in the new subsidiary, with the remaining shares distributed among institutional investors, including the Oromia Sovereign Fund, Oromia Capital Goods Finance, Shaggar Investment Group, Oromia Industrial Parks Development Corporation, and Oro-Construction Group.

A seven-member board has been formed under the chairmanship of Siinqee’s president, Neway Megersa, while the bank has appointed Girma Muleta, 41, as chief executive officer. Girma previously worked at the Commercial Bank of Ethiopia in marketing and credit monitoring, later joining Siinqee in 2022. He also teaches at St Mary’s University and holds degrees in applied mathematics and development economics.

Siinqee, headquartered in Addis Ababa and operating largely in Oromia Regional State, reported paid-up capital of 8 billion birr at the end of the last financial year, above the 5 billion birr minimum set by the National Bank of Ethiopia for 2026. Deposits reached 105 billion birr, with loans of more than 58 billion birr and total assets of 121 billion birr.

Awash Bank has also recently announced plans for an investment banking subsidiary capitalised at 200 million birr, although the licensing process remains ongoing.