First National Bank Zambia Limited
Status: Proposed investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
We welcome feedback on this proposed investment opportunity for FMO. The ending of the proposed investment phase is indicated on the right side of this page. 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 prospective customer?
First National Bank Zambia ("FNBZ") is a registered commercial bank in Zambia established in April 2009. It provides services to business and individuals across Zambia offering a plethora of banking products, ranging from loans, to deposits, trade finance, private banking, Forex, and other financial services. FNB Zambia's business focus is primarily on local corporates, SMEs and retail. It is a subsidiary of FirstRand EMA Holdings (pty) Ltd which in turn is owned by FirstRand Limited, one of Africa's largest financial institutions, headquartered in South Africa.
What is our funding objective?
FMO will be offering a USD40mln Senior Term Loan (of which USD20mln committed and USD20mln uncommitted) to support FNBZ’s growth of its Green (FMO-A; 5-year tenor) and Climate Adaptation (sustainable agri; DFCD, 7-year tenor) portfolio supported by tailored TA from WWF.
Why do we want to fund this investment?
FNBZ has been a longstanding relationship of FMO. This transaction provides much-needed long-term USD into the market, which have been short supply following the sovereign default (2020). Moreover, it addresses a need from businesses across Zambia affected by the 2024 drought and loadshedding who look for alternative energy and smart agriculture solutions to adapt to climate stress. Moreover, it supports FNBZ – through technical assistance of the WWF – in assessing and financing climate adaptation activities. The transaction is labelled 100% RI and 100% Green.
What is the Environmental and Social categorization rationale?
First National Bank Zambia (FNBZ) is categorized as FI-A in accordance with FMO’s Sustainability Policy. The risk categorization reflects the FI's overall portfolio exposure to high E&S risk sectors such as manufacturing (heavy industries), agriculture (large scale primary agriculture), mining and quarrying. FNBZ has implemented an Environmental and Social Risk Assessment (ESRA) Policy for managing portfolio E&S risks. As part of FMO's investment, an Environmental and Social Action Plan (ESAP) has been agreed with FNBZ to drive further E&S risk management improvements within the bank.
More investments
| Date | Total FMO financing |
|---|---|
| 5/4/2021 | USD 10.00 MLN |
| 9/6/2022 | USD 7.50 MLN |
| 3/17/2025 | USD 10.00 MLN |
- Website customer/investment
- https://www.fnbzambia.co.zm/
- Region
- Africa
- Country
- Zambia
- Sector
- Financial Institutions
- Publication date
- 3/17/2025
- Deadline for feedback
- 5/16/2025
- Total FMO financing
- USD 10.00 MLN
- Funding
- LUF
-
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