Project detail - AFRICAN CENTURY LIMITED

AFRICAN CENTURY LIMITED

Status: Completed investment
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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

African Century Ltd (ACL) is a Zimbabwean leasing company founded in 2010 by FMO’s client NMBZ and its largest shareholder (the UK based investment company) African Century. As per August 2014, ACL provides leasing to more than 500 clients consisting of SME’s (93 percent), Micro (3 percent) and Corporate (3 percent).

What is our funding objective?

Development of an environmental and social (E&S) process to become an integral part of ACL’s credit decision-making process with the aim to assess the E&S risks, understand the potential reputational risk and make a well-informed and weighted decision whether to continue a transaction with the prospective client.

Why do we fund this investment?

In order to understand potential reputational risks, ACL decided to develop ESG Lending Appraisal Guidelines. This enables ACL to be better equipped to define the type of E&S risks its clients are exposed to. FMO believes it can add value by assisting in establishing a more mature E&S procedure. ACL is very interested to learn from FMO’s expertise and work with FMO on integrating a more systematic approach towards E&S risk management.

More investments

Date Total FMO financing
6/11/2015 USD 5.00 MLN
Region
Africa
Country
Zimbabwe
Sector
Financial Institutions
Effective date
3/14/2016
End date
7/12/2018
Total FMO financing
EUR 0.01 MLN
Funding
MASSIF
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