First Capital Bank Plc
Status: Completed 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
First Capital Bank Malawi (“FCBM”), formerly known as First Merchant Bank, is a full-service commercial bank that offers financial products and services to corporate, commercial and retail markets in Malawi. FCBM is the third largest bank in Malawi with a 28% market share in the sector of total assets. It has a customer base of 500,000, served by 32 branches and agencies and 850 employees. FCBM is part of the Southern African banking group, FMBcapital Group, that has banking subsidiaries in Botswana, Malawi, Mozambique, Zambia and Zimbabwe. The group has 840k clients, 1,800 employees, an aggregate loan portfolio of over USD 400mln and total assets of over USD 1,100mln.
What is our funding objective?
FMO is providing a 4-year USD 10mln loan that will support on-lending to SME's requiring long-term hard-currency to grow their business and bolster export activities.
Why do we fund this investment?
Malawi is a LDC and a landlocked country, characterised by high poverty levels and an undiversified economy vulnerable to external shocks, given their high dependence on agri-commodities. This project contributes to SDG 10 on Reducing Inequalities, which is one of FMO’s core SDGs. The proposed transaction bolsters economic activities by extending access to finance to USD earning businesses, and thereby further support more competitive, diversified and shock-resilient economic growth. This transaction offers FMO an opportunity to establish new relationships with a sound and stable Southern African banking group, and reach out to multiple countries through the group. Additionality of the loan facility lies in the long-term nature of our financing, which is scarce in the market, as well as long-term partnership with FMO being one of the first DFIs the group will work with.
What is the Environmental and Social categorization rationale?
Environmental & Social risk Category FI-B. This facility has been categorised as Category FI-B in accordance with FMO’s Sustainability Policy.
- Website customer/investment
- https://firstcapitalbank.co.mw/
- Region
- Africa
- Country
- Malawi
- Sector
- Financial Institutions
- Publication date
- 5/3/2019
- Effective date
- 12/5/2019
- End date
- 12/22/2023
- Total FMO financing
- USD 5.00 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) - B