NMBZ secures $50m credit lines

NMBZ Holdings Limited (NMBZ) has secured $50 million in credit lines for on-lending to small-to-medium enterprises (SMEs) and corporates.


NMBZ chief executive officer, Benefit Washaya told an analysts briefing on Friday the group won approval for a $20 million line of credit, and a contract was being drawn up.

The drawdown of that facility is expected within the next 30 to 45 days, he said.

Washaya said three European development financial institutions will be in the country to finalise negotiations with the bank for a $30 million credit line in the next two weeks.

“The credit facility will go towards supporting SMEs and corporates and we do have a very long deal in the pipeline. It came from multiple sources, mainly from financial development institutions,” he said.

“We are getting these credit lines offshore. So if international financial institutions offer you a credit line, they cannot credit real-time gross settlement systems (RTGS), but credit your account with an international bank that is the nostro account.

“You will find that you have customers, who want to borrow. That money will not only be for important customers. You will find that we will have customers, who want to borrow locally and then we will be using our RTGS balances to lend. Our important customers will, therefore, benefit from that excess money that is in our nostro accounts, we can lend it locally.”

This comes as NMBZ experienced a 229% growth in profits to $5,48 million in 2015, a sharp rise from the previous year’s $1,6 million.

The group’s total assets grew by 17% to $333,83 million by the end of 2015 from the previous year of $286 million.

Loans and advances increased by 12% to $243,24 million from the previous year of $217,46 million mainly due to an increase in loans advance to broader market segments.

NMB bank deposits grew by 18% to $277,21 million in 2015, up from $235,36 million recorded in 2014.
The deposits grew due to a 22% increase in current and deposit accounts.

The bank’s non-performing loans ratio reduced to 13,19% by December 2015 from 17,74% over the same time period in 2014.

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