Proparco's aim in renewing its support to Bank One is to strengthen private sector development in Mauritius. The credit line which has been allocated is combined with support for environmental and social risk management.
Bank One is a generalist commercial bank registered in Mauritius. Its former name was First City Bank, before it was taken over in 2008 by the consortium made up 50% by CIEL Finance Ltd., and 50% by I&M Holdings. Bank One provides all the services of a universal bank (retail, corporate, SME banking, etc.). It has a local presence with 13 branches and a regional presence with a representation office in South Africa. It is currently the country's tenth largest bank in terms of loans and deposits.
Proparco has allocated Bank One a EUR 10m subordinated credit line with a 10-year maturity. This credit line will strengthen the banks equity, after the authorization of the Central Bank of Mauritius. This credit line is Proparco's second operation with Bank One, following an initial USD 6m operation in 2009, also earmarked to strengthen the bank's capital structure.
The project will support private sector development in Mauritius. The bank's portfolio is highly diversified, both in terms of clients and the sectors financed. The bank is anticipating a growth in its activity of 35%, with a target focusing on SMEs, by developing a specific range of products and with a dedicated team. The bank will benefit from support from Proparco to improve environmental and social risk management.