FBC Bank Limited has received a $60 million loan through the facilitation of three financial institutions who were Joint Mandated Lead arrangers for the transaction.
The institutions include Standard Chartered Zimbabwe, Commerz bank Aktienge sells chaft and Investec Asset Management Proprietary Limited.
The three institutions contributed some money to the loan facility.
The facility carries a comprehensive guarantee from African Export-Import Bank (Afreximbank), the regional development bank established to finance and support regional trade, manufacturing and economic growth.
Standard Chartered and Afreximbank were also joint co-ordinators for this facility.
FBC Bank Limited managing director, Webster Rusere said the syndication would not only help FBC, but Zimbabwe as a whole.
“The effective management of capital is essential for the well-being of our economy, and this transaction is a leading example of how banks can come together to create positive and holistic solutions for multiple organisations and institutions.
We appreciate being part of such a progressive financial partnership,” he said.
Financial syndications are valuable commercial collaborations which increase the total value of finance available to institutions, while effectively managing risk for syndicated partners.
Standard Chartered Zimbabwe chief executive officer Ralph Watungwa said the bank remained committed to using its strengths and capital to benefit and support the local economy.
“This is yet another example of our promise to be here for good and facilitate transactions which generate positive outcomes for many generations to come. Over the last 12 months, Standard Chartered has delivered over $300 million worth of support to key growth sectors in Zimbabwe, such as agriculture, trade, commodities and others – a 20% increase from 2012,” he said.
Afreximbank president Jean-Louis Ekra said through this transaction the bank was boosting liquidity and promoting economic growth.
“With the continuing effort by Zimbabwe to address the tight systemic liquidity challenges confronting it, this syndication strengthens the capacity of the country’s trade finance banks to continue their role of financing trade,” Ekra said.
The transaction will enable FBC to support strategic growth sectors such as education, telecommunications and infrastructure – each integral to promoting economic growth.