NATIONAL MICROFINANCE BANK PLC Tanzania ("NMB")
Status: Approved investmentWhy disclosure?
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In case of questions
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 providing long-term funding dedicated to MSMEs with a focus on women owned and agricultural MSMEs, which are considered an important driving force of the Tanzanian economy. In addition, through this facility, FMO is supporting NMB to identify and finance eligible green loans within its MSME and corporate portfolio.
Why do we fund this investment?
NMB has been a strategic partner to FMO since 2013. Through this funding, FMO is supporting NMB with flexible long-term funding which remains scarce in Tanzania. Moreover, the new loan is supporting NMB to deliver its strategic objectives to further grow the bank’s agriculture and MSME portfolio and thereby contribute to private sector development in Tanzania.
What is the Environmental and Social categorization rationale?
The client is categorised as Category A in accordance with FMO’s Sustainability Policy. The E&S risk classification for the client has been upgraded since FMO's last facility, which is a result of the client increasing their exposure to the corporate segment. Although the corporate loan book still accounts for a relatively small portion of their total loan book, the individual exposures in the corporate segment are significant in size with a steadily growing average loan. To tackle the increased E&S risks, an E&S Action Plan has been developed and agreed upon as part of the current facility.
More investments
| Date | Total FMO financing |
|---|---|
| 12/5/2023 | USD 30.00 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 |
- Region
- Africa
- Country
- Tanzania, United Republic of
- Sector
- Financial Institutions
- Publication date
- 12/20/2022
- Effective date
- 12/15/2022
- Total FMO financing
- USD 75.00 MLN
- Funding
- FMO NV
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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