FMO has closed a six-year USD 35 million syndicated loan facility with National Microfinance Bank Plc (“NMB”) , one of Tanzania’s leading banking institutions. The loan was arranged by FMO, in syndication with Proparco (USD 15 million) and Swedfund (USD 5 million).
The funds will be used for on-lending to small-and-medium enterprises (SMEs) and corporate borrowers and will contribute to job creation in Tanzania.
FMO’s CIO Linda Broekhuizen said: “By supporting NMB Tanzania, we will contribute to providing credit to SMEs and Corporates in Tanzania, supporting economic development. NMB is a leading financial institution in Tanzania, which performs well and has a presence in most of its regions. The lenders are therefore very pleased to be part of this transaction.”
“We are pleased with the positive response of the international lenders to this transaction. This is the second time we have entered into a transaction with FMO, this time supported by Proparco and Swedfund. Again the loan will be used to accelerate our growth in SME and Corporate business, with this time a special focus on Agribusiness. This partnership reflects the international financial institutions’ confidence in NMB’s solid fundamentals -- strong capital levels, well diversified loan portfolio and quality assets, and strong balance sheet with sustainable growth,” NMB Chief Executive Officer, Ms. Ineke Bussemaker was quoted as saying.
ABOUT NMB Tanzania
National Microfinance Bank PLC (“NMB”) is Tanzania’s leading banking institution, both in customer based and branch network. With over 160 branches, NMB is represented in more than 95% of Tanzania's districts. NMB serves individuals, micro- and small enterprises as well as larger businesses. NMB has a strong financial record, based on years of strong and stable performance. NMB is listed on the Dar Es Salaam stock exchange. NMB’s largest shareholder is its strategic partner Rabobank (34.9%), which has been invested in NMB since 2005.
ABOUT FMO
FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 45 years. Our mission is to empower entrepreneurs to build a better world. We invest in sectors where we believe our contribution can have the highest long-term impact: financial institutions, energy and agribusiness. Alongside partners, we invest in the infrastructure, manufacturing and services sectors. With an investment portfolio of EUR 8 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally. www.fmo.nl
About Proparco
Proparco – a subsidiary of the Agence Française de Développement (AFD) devoted to private sector funding – has been supporting sustainable development for almost 40 years. It operates in 73 countries in Africa, Asia, Latin America and the Middle East and helps finance and support financial institutions and corporate private-sector projects. Proparco focuses on the key development areas, such as renewable energy-based infrastructure, agribusiness, financial sector, health and education. Through its work, PROPARCO has a powerful impact on sustainable economic growth, job creation, access to essential goods and services and, more broadly, on poverty reduction and fighting climate change. With a balance sheet total of €4.6bn at December 31, 2014 PROPARCO is one of the leading European Development Finance Institutions which together spearhead a large number of joint programmes.
About Swedfund
Swedfund, owned by the Swedish state, provides capital, expertise and financial support for investments in the emerging markets of Africa, Asia, Latin America and Eastern Europe. Our mission is poverty reduction through sustainable business, contributing to economic and environmental development as well as a positive impact to society. Since 1979 Swedfund has been engaged as an active, responsible and long-term investor in more than 230 companies in our countries of operation. For more information about Swedfund visit www.swedfund.se.
