Zimbabwe’s FBC Bank granted 60 mln dollar loan facility - CNBC Africa

Zimbabwe’s FBC Bank granted 60 mln dollar loan facility

Southern Africa

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The three-year term loan facility was concluded by Standard Chartered Bank alongside Commerzbank Aktiengesellschaft and Investec Asset Management Proprietary Limited, who acted as Joint Mandated Lead Arrangers.

FBC Bank Limited is a financial services group that deals in commercial, investment banking, mortgage and reinsurance services in Zimbabwe.

“This syndication will not only support FBC’s successful business strategy in Zimbabwe, but also enable us to deliver tangible benefits and make a difference in the lives of individual Zimbabweans,” Webster Rusere, managing director of FBC Bank Ltd, said in a statement.

“The effective management of capital is essential for the well-being of our economy, and this transaction is a leading example of how Banks can come together to create positive and holistic solutions for multiple organisations and institutions. We appreciate being part of such a progressive financial partnership.”

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The facility, according to Standard Chartered, carries a comprehensive guarantee from African Export-Import Bank, a regional development bank established to finance and support regional trade, manufacturing and economic growth. Standard Chartered and Afreximbank are also joint coordinators of the facility.

Financial syndications alongside commercial collaborations can increase the total value of finance available to institutions while effectively managing risk for syndicated partners. 

The funds are expected to introduce liquidity into the market and allow FBC to support growth sectors such as education, telecommunications and infrastructure. These sectors are integral to promoting long term economic growth.

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A number of local initiatives are also expected to benefit from the lending facility, including the National University of Science and Technology’s establishment of the country’s first DNA testing laboratory.

Ralph Wantungwa, CEO for Standard Chartered Zimbabwe, explained that investment and capitalising on the local economy will be further prioritised with the help of the loan facility.

“Standard Chartered remains committed to using its strengths and capital to benefit and support the local economy.  This is yet another example of our promise to be here for good and facilitate transactions which generate positive outcomes for many generations to come,” he said.

“Over the last 12 months, Standard Chartered has delivered over 300 million US dollars’ worth of support to key growth sectors in Zimbabwe, such as agriculture, trade, commodities and others – a 20 per cent increase from 2012.” 

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