Project detail - NMBZ HOLDINGS LTD

NMBZ HOLDINGS LTD

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Who is our client

NMBZ is a holding company whose principal subsidiary is NMB Bank Limited (NMB), a registered commercial bank in Zimbabwe. NMB is the sixth largest bank in Zimbabwe and is active in the financing of local enterprises. NMB is listed in the Zimbabwe Stock Exchange.

Funding objective

In April 2013, FMO invested USD 4.9 million in NMBZ, acquiring an equity stake of 9%. The new capital will contribute to strengthening NMB’s capital base, supporting the growth of the bank and helping it comply with recently-increased minimum capital criteria. The investment is part of a total package of capital injections that also included AfricInvest and Norfund. In addition to their financial contribution, the investors plan to contribute to the bank’s development by nominating experienced board members and by providing technical assistance in areas requiring further strengthening.

Why we fund this project

Local capital is still scarce in Zimbabwe; FMO’s investment is therefore additional. By making this investment FMO aims at fostering credit extension to Zimbabwean enterprises, sound banking practices and sustainable economic development.

Website client
http://www.nmbz.co.zw
Region
Africa
Country
Zimbabwe
Sector
Financial Institutions
Signing date
3/28/2013
Total FMO financing
USD 4.94 MLN
Fund
MASSIF
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B