CABS is in advanced negotiations to secure additional lines of credit to support lending to productive sectors of the economy, as the building society moves to expand financing for key industries.
The fresh funding push comes after the institution secured credit lines from development partners, closing 2025 with a total approved limit of US$162,7 million.
According to CABS’ annual report for the year ended December 31, 2025, the building society drew down US$73,52 million from the facilities during the period and deployed US$75,2 million towards lending activities.
“During the reporting period, CABS managed to secure lines of credit from developmental partners, closing the year with a total limit of US$162,70 million,” CABS managing director Mehluli Mpofu said in a statement attached to the annual report under review.
“These funds were mainly deployed to the agriculture and mining sectors, with investments of over US$80 million and US$40 million, respectively. The society is also negotiating further credit lines earmarked for the productive sectors of the economy.”
The credit lines helped drive growth in the building society’s lending, with the loan book rising to US$253,26 million during the review period, up from US$192,03 million in the prior year.
As a result, net interest income increased 29,43% to US$32,72 million, up from US$25,28 million in 2024, reflecting growth in the loan book and improved yields on earning assets.
Under its liabilities, CABS reported outstanding credit line obligations of US$53,67 million, comprising facilities from the African Export-Import Bank (US$17,98 million), the European Investment Bank (US$9,73 million), and the Trade and Development Bank (US$25,96 million).
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“All offshore credit lines are denominated in foreign currency, predominantly US dollars, except for the €15 million European Investment Bank Trade Finance Facility, which matures in February 2028,” CABS said.
“However, in terms of settlement, the EIB facility is converted and settled in US dollars to mitigate currency risk.”
The building society said it continues to meet all covenant requirements associated with the facilities, adding that management considers the funding sources stable and adequate for both operational and strategic liquidity needs.
“The security structures vary by lender, and these range from unsecured, partially secured, to fully secured facilities,” CABS said.
For the Trade and Development Bank facility, CABS registered bonds and issued powers of attorney to register bonds — in the event of default — over properties valued at US$33,98 million as at December 31, 2025. These include both investment and owner-occupied properties.
CABS chairperson Joshua Tapambgwa said the credit lines secured last year were primarily aimed at supporting local business expansion.
“We anticipate concluding ongoing negotiations for credit lines dedicated to the productive sector, with deployment expected in early 2026 to support economic activity and value creation,” Tapambgwa said.
“Our focus will remain on accelerating digital transformation, strengthening the society’s balance sheet and expanding financial inclusion initiatives, particularly those that empower women-led enterprises.”
