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NMB Bank: Long-term resources to increase loan maturities for Zimbabwean companies
Project
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Signature date
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Location
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Zimbabwe
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Financing tool
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Financing amount (Euro)
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8236553.83
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Financing details
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Loan of USD 10m
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Customer
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NATIONAL MERCHANT BANK OF ZIMBABWE LIMITED
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Type of customer
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Financial institution
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Project number
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PZW1033
This information is given at the time of signature, without prejudice to any developments in the operation/project.
In Zimbabwe, NMB needs to develop its loan portfolio in a market where long-term financing is scarce. These long-term resources will allow it to increase the maturity on loans allocated to Zimbabwean companies.
Client presentation
NMB Bank was set up by Zimbabwean entrepreneurs in 1992 as a merchant bank. Since December 1999, NMB has had a commercial bank license, which has allowed it to develop its activities and diversify its financing sources, as well as its range of products. Building on a network of ten branches, at the end of 2012 NMB Bank was the eighth largest commercial bank in the country in terms of assets.
Project description
Proparco’s loan will allow NMB Bank to develop its loan portfolio on a market where only very short-term financing is available. These long-term resources will give NMB the capacity to increase the maturities of loans allocated to Zimbabwean companies.
Project impact
By promoting access to long-term resources for Zimbabwean companies, this project will contribute to private sector development in the country. More generally, this operation will support Zimbabwe’s development, in a context of economic restructuring where there are significant financing needs. Through this transaction, Proparco also aims to act as a catalyst by attracting other foreign investors.