AfDB extends $150 mn to Mauritius Commercial Bank
The African Development Bank (AfDB) approved the sanction of a financing package totalling $150 million to the Mauritius Commercial Bank on September 11. The main objective of the credit extended to the MCB is to spur the development of Africa businesses, especially medium and large scale enterprises, by allowing the bank to increase its foreign currency lending to such firms operating in Mauritius, neighbouring countries and mainland Africa.
The package comprises a multi-sector line of credit (LOC) to the tune of $120 million and another $30 million worth of subordinated debt.
The proposed financial package will help MCB, one of the largest and oldest banks in Mauritius, to meet its foreign currency funding requirements. Further, it will help strengthen MCB’s capital base and assist the bank in growing its already rich continental portfolio. It will enable MCB to spur projects that meet green growth and inclusive growth criteria in key sectors by extending long-term project finance to AfDB regional member countries.
The proposed facility is in line with Mauritius’ 2012-2015 government strategy which aims to increase and diversify private sector and financial sector development. In the long run, by fast-tracking projects that have long term implications for regional development and sustainable growth, this package is expected to have positive impacts on private sector development and job creation. Increase in taxes and government revenues across the continent is also expected, particularly in Eastern and Southern Africa.
Established to help development efforts on the continent, the African Development Bank (AfDB) Group has a rich membership base of 53 independent African countries and 24 non-African countries. The paid-up capital of the group stood at UA 4.96 billion ($7.49 billion) at the end of 2012. As the continent’s premier development finance institution, the African Development Bank (AfDB) Group borrows from capital markets for on-lending to its regional member countries.
The MCB Group, founded in 1838, is the oldest and largest financial institution in Mauritius with over US $7 billion in total assets and around US $940 million in shareholders’ funds. It has a wide regional presence with subsidiaries in Madagascar, Mozambique, Seychelles and Maldives and is also present in Reunion and Mayotte through its associate. The bank also boasts of representative offices in Paris and Johannesburg. MCB’s continental portfolio is diverse and covers several countries in mainland Africa.
Image: The green office which serves as the headquarters of the Mauritius Commercial Bank at Ebene, Mauritius, Source: firstafrican.com
Source: Official site of the AfDB group
Africa Development Bank (AfDB)
Established to help development efforts on the continent, the African Development Bank (AfDB) Group comprises three distinct entities under one management: the African Development Bank (AfDB) set up in 1963, which is the flagship or parent institution, as well as two concessionary windows – the African Development Fund (ADF), established in 1972, by the African Development Bank and 13 non-African countries, and the Nigeria Trust Fund (NTF), set up in 1976 by the Federal Government of Nigeria.
Membership of the AfDB Group, as at the end of December 2007, includes 53 independent African countries and 24 non-African countries. Turkey is finalizing procedures to become members of the Bank Group. To become an AfDB member, non-regional countries must first be ADF members.
Source: Company Website
Mauritius Commercial Bank (MCB)
The oldest bank in Mauritius, the MCB was established in 1838 as the ‘La Banque Commerciale de Maurice’. In 1839, Queen Victoria granted a Royal Charter to the newly established bank for a period of twenty years under the name of the ‘The Mauritius Commercial Bank’ (MCB).
With a dominant market position on the local side, the MCB was inspired to expand beyond the shores of Mauritius as early as 1991. Today, on the strength of its sustained international expansionary drive and regional rebranding initiatives, the MCB brand is visible in Madagascar, Maldives, Mozambique and Seychelles. The MCB Group has also consolidated its presence in Réunion, Mayotte and Paris through BFCOI, its associate. The MCB opened a representative office in Johannesburg, South Africa in 2008. Moreover, the Group is actively involved in project and trade financing in various countries of the sub-Saharan region, while also being engaged in other markets such as India.
Source: Company Website