NATIONAL MICROFINANCE BANK PLC
Status: Completed investmentWhy disclosure?
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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 was established in 1997 as a micorfinance bank. In 2005, the Government of the United Republic of Tanzania privatized the bank when it sold part of its shareholding (49%) to a consortium led by the Cooperative Centrale Raiffeisen-Boerenleenbank B.A. (‘Rabobank Group’). Subsequently, there was further divestiture in 2008 when the Tanzanian Government off loaded another 21% of its shareholding to the Tanzanian public through an Initial Public Offering (IPO). The listing of the bank’s stock on the Dar es Salaam Stock Exchange has led to a diversified ownership structure, leaving the Rabobank Group with 35%. Arise BV, a joint venture between Rabobank, Norfund and FMO has replaced Rabobank Group as the new owner (economic ownership), however the legal ownership is still subject to approval by the regulatory authorities
What is our funding objective?
FI Africa extends a USD 15 mln Trade Facility Limit to existing client NMB Bank under the FMO Trade Enhancement Program to further support trade finance activities.
Why do we fund this investment?
Trade finance is an important mean to promote and facilitate trade in- and between emerging markets. With African economies on the rise again, there is increasing demand for trade finance lines. Various recent studies have indicated a multi-billion trade finance gap annually in Africa alone as the international financial crisis saw many international banks pulling back from emerging markets. By supporting trade finance activities, FMO helps addressing the trade finance gap thereby increasing capacity to facilitate trade flows with- and within Africa.
What is the Environmental and Social categorization rationale?
This facility has been categorised as Category B/C in accordance with FMO’s Sustainability Policy. The trade finance activities are deemed to have potential limited adverse environmental and social risks and/or impacts. As part of this facility, NMB will be required to apply the EDFI Exclusion List and national E&S laws and regulations.
More investments
| Date | Total FMO financing |
|---|---|
| 12/5/2023 | USD 30.00 MLN |
| 12/15/2022 | USD 75.00 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
- Effective date
- 11/15/2018
- End date
- 5/4/2021
- Total FMO financing
- USD 15.00 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) - B