Project detail - BANCO COMERCIAL E DE INVESTIMENTOS

BANCO COMERCIAL E DE INVESTIMENTOS

Status: Completed investment
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In case of questions, please contact us at disclosure@fmo.nl

Disclaimer

The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.

Who is our customer

Incorporated in 1996, Banco Comercial e de Investimentos (“BCI”) is the largest bank in Mozambique. The bank provides a wide range of corporate, retail and commercial banking services to >1.5mln clients through a network of over 193 branches and outlets. The main shareholders are Portuguese banks Caixa Geral de Depositos (CGD) and Banco Portugues de Investimento (BPI).

What is our funding objective?

The funds will be used to finance BCI's pipeline of infrastructure projects which are in need of long-term USD funding, which is very scarce at the moment. These projects have strong linkages to other economic sectors, therefore boosting employment creation. Moreover, our facility improves the bank’s maturity profile.

Why do we fund this investment?

The proposed transaction is aligned with FMO’s mandate to support strong institutions in difficult operating environments, as remains the case in present Mozambique. This joint PROPARCO/FMO investment will give a strong signal of confidence in one of the sector’s most robust and systemic banks which will help BCI weathering the current challenges. FMO maintains an active foothold in a country which for many IFIs/DFIs remains closed for business.

What is the Environmental and Social categorization rationale?

The bank’s exposure to potential high E&S risk sectors represents more than 20% of the portfolio, thus BCI is categorized as FI-A. BCI has put efforts in developing and implementing an E&S risk management approach over the last years. We will further support BCI strengthening its E&S management via an Environmental and Social Action Plan.

Website customer/investment
http://www.bci.co.mz/
Region
Africa
Country
Mozambique
Sector
Financial Institutions
Effective date
7/17/2020
End date
8/23/2022
Total FMO financing
USD 25.00 MLN
Funding
FMO NV
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)
A