NMB Bank Plc
Status: Approved investmentWhy disclosure?
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In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
NMB Bank Plc. (“NMB”) is one of the largest commercial banks in Tanzania, providing banking services to individuals, MSMEs, agribusinesses and corporates. NMB has an extensive network of agents, branches and ATMs spread across Tanzania and is enabling access to finance to end clients across the country.
What is our funding objective?
FMO is participating in the sustainability bond issuance of NMB, aligning with the Green & Social Bonds Principles. The USD 30 million financing aims to provide essential capital to advance the Green agenda in Tanzania, focusing on projects for climate mitigation and adaptation. Additionally, it will support activities targeting affordable housing, increasing access to essential services, and fostering growth in the MSMEs' space with a specific emphasis on initiatives promoting gender equality and equal opportunities.
Why do we fund this investment?
NMB has been a strategic partner to FMO since 2013. Through this funding, FMO is providing NMB with flexible long-term funding, addressing a scarcity in Tanzania. The new bond participation supports NMB in achieving its strategic objectives, particularly in growing the bank’s Green portfolio and addressing some of Tanzania's socio-economic challenges by contributing to the private sector development. Notably, the investment will carry a 100% Reducing Inequalities (RI) label, as it will be exclusively used in Tanzania (LDC), and a 50% Green label, with USD 15 million allocated to Green financing.
What is the Environmental and Social categorization rationale?
NMB is classified as E&S Category A in accordance with FMO’s Sustainability Policy. The E&S risk classification for the client was upgraded in 2022 due to an expansion of their exposure to the corporate segment, aligning with NMB's portfolio diversification strategy. In response to the increased E&S risks, an E&S Action Plan has been developed, agreed upon, and progress has been made in addressing the identified deficiencies. NMB has strengthened its E&S team by hiring a new manager dedicated to overseeing these initiatives.
More investments
| Date | Total FMO financing |
|---|---|
| 12/15/2022 | USD 75.00 MLN |
| 5/4/2021 | USD 15.00 MLN |
| 9/12/2022 | USD 12.50 MLN |
| 9/12/2022 | USD 15.00 MLN |
| 8/29/2019 | USD 32.50 MLN |
- Website customer/investment
- https://www.nmbbank.co.tz/
- Region
- Africa
- Country
- Tanzania, United Republic of
- Sector
- Financial Institutions
- Publication date
- 12/8/2023
- Effective date
- 12/5/2023
- Total FMO financing
- USD 30.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A