The National Microfinance Bank has closed a six-year 35 million US dollar (about 73.5bn/-) syndicated loan facility with Netherlands Development Finance Company (FMO) to boost its lending to small and medium enterprises (SMEs) and corporate borrowers.
According to a statement issued yesterday, the loan was arranged by FMO, in syndication with Proparco, a subsidiary of the Agence Francaise de Developement (AFD) which will provide 15 million US dollars and Swedfund 5 million US dollars.
“By supporting NMB Tanzania, we will contribute to providing credit to SMEs and Corporates in Tanzania, supporting economic development,” FMO’s Chief Investment Officer, Linda Broekhuizen is quoted as saying.
“NMB is a leading financial institution in Tanzania, which performs well and has a presence in most of its regions. The lenders are therefore very pleased to be part of this transaction.”
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NMB Chief Executive Officer, Ms. Ineke Bussemaker said they were pleased with the deal as it would boost their growth in SMEs and corporate business with a special focus in agribusiness.
“We are pleased with the positive response of the international lenders to this transaction. This is the second time we have entered into a transaction with FMO, this time supported by Proparco and Swedfund.
Again the loan will be used to accelerate our growth in SME and Corporate business, this time special focus on Agribusiness,” she is quoted as saying in the statement. “This partnership reflects the international financial institutions’ confidence in NMB’s solid fundamentals strong capital levels, well diversified loan portfolio and quality assets, and strong balance sheet with sustainable growth.”
The Dar es Salaam Stock Exchange (DSE) listed bank, is one of the largest commercial banks in Tanzania, providing banking services to individuals, small to medium sized corporate clients, government services, large businesses and agriculture lending.
