Project detail - FIRST CAPITAL BANK PLC (MALAWI)

FIRST CAPITAL BANK PLC (MALAWI)

Back to map

Who is our client

First Capital Bank Malawi (“FCBM”), formerly known as First Merchant Bank, is a full-service commercial bank that offers financial products and services to corporate, commercial and retail markets in Malawi. FCBM is the third largest bank in Malawi with a 28% market share in the sector of total assets. It has a customer base of 500,000, served by 32 branches and agencies and 850 employees. FCBM is part of the Southern African banking group, FMBcapital Group, that has banking subsidiaries in Botswana, Malawi, Mozambique, Zambia and Zimbabwe. The group has 840k clients, 1,800 employees, an aggregate loan portfolio of over USD 400mln and total assets of over USD 1,100mln.

Funding objective

FMO is providing a 4-year USD 10mln loan that will support on-lending to SME's requiring long-term hard-currency to grow their business and bolster export activities.

Why we fund this project

Malawi is a LDC and a landlocked country, characterised by high poverty levels and an undiversified economy vulnerable to external shocks, given their high dependence on agri-commodities. This project contributes to SDG 10 on Reducing Inequalities, which is one of FMO’s core SDGs. The proposed transaction bolsters economic activities by extending access to finance to USD earning businesses, and thereby further support more competitive, diversified and shock-resilient economic growth. This transaction offers FMO an opportunity to establish new relationships with a sound and stable Southern African banking group, and reach out to multiple countries through the group. Additionality of the loan facility lies in the long-term nature of our financing, which is scarce in the market, as well as long-term partnership with FMO being one of the first DFIs the group will work with.

Environmental and social rationale

Environmental & Social risk Category FI-B. This facility has been categorised as Category FI-B in accordance with FMO’s Sustainability Policy.

Website client
https://firstcapitalbank.co.mw/
Region
Africa
Country
Malawi
Sector
Financial Institutions
Signing date
12/5/2019
Total FMO financing
USD 5.00 MLN
Fund
FMO
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