Mauritiusâ€™ Barclays forms part of big loan deal between NBC & Star Oil Tanzania
The loan deal represents an important step towards fostering oil and petroleum industry in Tanzania, and the large scale of the agreement reinforces Mauritiusâ€™ standing as a regional financial hub. (Image: MeTL)
The National Bank of Commerce (NBC) in Tanzania and Star Oils Tanzania have signed an agreement for 100 billion Tanzanian shillings (around MUR 1.85 billion) in loan funding, with Barclays Bank Mauritius and South Africaâ€™s Absa also forming party to this major loan deal, according to a press release by NBC.
The loan deal represents an important step towards fostering oil and petroleum industry in the country, and the large scale of the agreement reinforces Mauritiusâ€™ standing as a regional financial hub.
Further, its East African neighbours, with focus on Kenya, Tanzania, Rwanda and Uganda, can serve as critical destinations for deal funding, as these are large emerging economics with heavy infrastructure requirements, which call for sizeable financing.
With its well-developed financial services sector, Mauritius can play an increasing role in funding deals, especially along the Eastern African region.
In structuring this deal, Barclays Bank Mauritius has funded a Term Facility, Absa provided a Structured Trade Finance Facility, whilst NBC has afforded an Overdraft Facility to Star Oils Tanzania.
NBC Managing Director Mizinga Melu said that the bankâ€™s has concluded a multi-billion shilling financial deal with Star Oils, a sister company of Mohammed Enterprise Tanzania Limited (MeTL), as she addressed visiting dignitaries during the official signing ceremony in Dar es Salaam at the weekend.
She noted that Star Oilsâ€™ sister company MeTL is one of the fast growing firms in East and Southern Africa and boasts impressive financial and business records.
She added that MeTL is one of the firms that has shown a strong record in trading of manufacturing goods, textiles, insurance and oil, and an enterprise that fully deserves to be empowered by financial institutions inside and outside the country.
This deal would enable Star Oils to expand their targets in global market as well as foster its production and distribution level in East and Southern Africa, she stressed.
She noted that the banks that made this deal a reality are NBC, Absa and Barclays Bank Mauritius, and the successful conclusion of the deal showcases NBCâ€™s and Barclays Africa Groupâ€™s joint capabilities in supporting its clients.
For his part, MeTL Managing Director Mohammed Dewji said that the milestone that the firm has achieved shows its commitment towards the oil and petroleum industry in Tanzania.
He reiterated that the firm is planning to start distributing oil and petroleum products in East and Southern Africa as part of the firmâ€™s efforts to expand its business in Africa.
Star Oils Tanzania is one of MeTL Groupâ€™s newest business ventures located near the Dar es Salaam port at Kurasini.
Currently, Star Oils Tanzania is executing Phase II of an extensive project to store petroleum products and subsequently provide for a nationwide distribution network of petroleum products through a chain of nearly 200 petrol stations.
The total storage capacity of this facility, created solely for the storage of gasoline, gas oil and kerosene, shall be 68 million litres upon project completion.
The bulk of these products are currently marketed on a wholesale basis with future plans to market them through MeTL Groupâ€™s retail petrol stations.
NBC is one of the most well-represented retail banks in the country with over 45 years of experience in providing financial services.
Apart from offering traditional banking services, NBC also prides itself on an expanded branch network of 52 branches and over 280 Visa enabled ATMs. The bank also services over 250 Points of Sales strategically located throughout the country and employs over 1300 staff.
Coming to Barclays Mauritius, set up on 15 October 1919, Barclays was the first international bank to establish operations in Mauritius, providing a range of banking services to personal and corporate customers.
Globally, Barclays has over 300 years of experience and is present across Europe, America Asia and Africa in over 50 countries with 48 million customers, 140,000 employees and 4800 outlets worldwide.
Source: Makangale Satellite