NMB courts foreign investors

HARARE - Dual-listed financial services group NMB Zimbabwe (NMBZ) will this week play hosts to foreign investors who are expected to inject close to $30 million in the company for on-lending to industry and various sectors of the economy.

The group’s chief financial officer, Benson Ndachena, told the businessdaily that a delegation of three Developmental Finance Institutions (DFIs) would be arriving today to assess NMBZ.

“We expect to access about $30 million from them — at least $10 million from each,” he said adding that the Zimbabwe Stock Exchange-listed group was presently processing legal papers for another $20 million line of credit.

In the absence of strong foreign direct investment and overseas development assistance, Zimbabwean banks are playing an instrumental role in helping the country secure offshore loans for economic development.

To date, several banks have secured over $300 million in offshore credit in the past few years. 

NMBZ, which has been at the forefront of seeking affordable loans from European countries, recently received a $10 million loan facility from private financier, Norsad Finance Limited (Norsad).

In November last year, NMBZ chief executive Benefit Washaya revealed that the group’s flagship unit — NMB bank — was in negotiations for a $40 million line of credit in the region.

As at November 30 last year, NMB’s approved lines stood at $60 million from six different funders with the bank negotiating for additional lines in the region of $40 million.

The group — also listed on the London Stock Exchange — recorded a 231 percent surge in net profit to $5,5 million in the full year to December 2015, despite writing off loans amounting to $11,7 million in the same period.

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