FBC Bank receives $60m loan

HARARE - Standard Chartered Zimbabwe (StanChart), Germany-based Commerzbank Aktiengesellschaft and Investec Asset Management Proprietary Limited have concluded a $60 million three-year syndicated term loan facility for FBC Bank Limited (FBC).

The syndication is significant in that the funds will introduce valuable liquidity into the market, as well as enable FBC to support strategic growth sectors such as education, telecommunications and infrastructure — each integral to promoting long-term economic growth.

The facility carries a comprehensive guarantee from African Export-Import Bank (Afreximbank), the regional development bank established to finance and support regional trade, manufacturing and economic growth.

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

“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,” said Rusere.

Ralph Watungwa, StanChart’s chief executive said his organisation remained 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.  Over the last 12 months, Standard Chartered has delivered over $300 million worth of support to key growth sectors in Zimbabwe, such as agriculture, trade, commodities and others — a 20 percent increase from 2012,” he said.

Through these structured lending facilities, the local economy expects to derive direct benefit from the funding of initiatives such as the National University of Science and Technology’s establishment of the country’s first DNA testing laboratory; TelOne’s scaling up and development of the local telecommunications infrastructure and Zimbabwe Power Company’s purchase of spares and equipment to support power generation at the Hwange Thermal Power Station.

Jean-Louis Ekra, president of Afreximbank noted that the continuing efforts by Zimbabwe to address the tight systemic liquidity challenges confronting it, strengthens the capacity of the country’s trade finance banks to continue their role of financing trade.

Standard Chartered and Afreximbank are also joint co-ordinators for this facility.

With Africa’s development demands increasing along with the continent’s growth potential, syndicated loans provide a holistic solution for all stakeholders in supporting larger scale financing requirements.

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