NMBZ Holdings said the legal processes for the $15 million line of credit from two European development finance institutions (DFIs) were still on-going and the money would be accessed at a later stage.
BY BUSINESS REPORTER
In an interview, NMBZ chief financial officer Benson Ndachena said the funds, which were supposed to be utilised by the end of this month, would be accessed by mid-October.
“We should be getting the money by next month around mid-October. It was the legal processes that took a long time. While for the $10 million line of credit (education sector), due diligence has been postponed and they will be coming in October,” he said.
The company announced during its analysts briefing that it was going to access $35 million from a regional bank and two European DFIs.
During the first-half of the year, the group secured $20 million from a regional bank and the money was being drawn down.
The group said they would also be funding small and medium enterprises with money obtained from the DFIs. The country has more than 75% of its population employed in the informal sector and most of them require funding, which is not easily accessible in the market.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
FMO and Norfund, who jointly own 17,98% of NMBZ have joined forces with Rabobank of Netherlands and pooled investments in financial services in 20 African countries into an investment vehicle called Arise.
He said Banco Montepio, a Portuguese financial group, was expected to join the partnership in the near future.
“NMBZ will be able to benefit from a wide network of other African banks that are part of the partnership. The partnership will assist us in our quest for lines of credit to serve the smes and the financially excluded and marginalised groups,” he said.
For the first six months ended June 30, NMBZ posted a profit after tax of $2,6 million, which showed a 17% decline compared to the same period in 2015.
