TUNIS, Tunisia, September 11, 2013/African Press Organization (APO)/ – The Board of Directors of the African Development Bank (AfDB) (http://www.afdb.org) approved on Wednesday, September 11 a financing package consisting of US $120 million multi-sector line of credit (LOC) and US $30 million subordinated debt to The Mauritius Commercial Bank (MCB). This financing package will allow MCB to increase its foreign currency lending to medium- and large-sized enterprises operating in Mauritius, neighbouring countries and mainland Africa, thereby enhancing sustainable and inclusive growth through private sector development in the region.
MCB Group is the largest financial institution in Mauritius with over US $7 billion in total assets and around US $940 million in shareholders’ funds. It has a 175-year-old history and is a respected regional financial institution, with subsidiaries in Madagascar, Mozambique, Seychelles and Maldives as well as presence in Reunion and Mayotte through its associate while having representative offices in Paris and Johannesburg. MCB’s continental portfolio straddles several countries in mainland Africa.
The proposed financial package will help MCB to meet its foreign currency funding requirements and strengthen MCB’s capital base as it implements its plan for continued continental business growth. It will enable MCB to channel long-term project finance to AfDB regional member countries where it is involved or through participation in syndicated deals with a focus on projects that meet green growth and inclusive growth criteria in key sectors.
The proposed facility is aligned with Mauritius’ 2012-2015 Government Strategy which aims to increase and diversify private sector and financial sector development. Ultimately, this package is expected to have positive impacts on private sector development and job creation alongside increasing taxes and government revenues across the continent, particularly in Eastern and Southern Africa. Additionally, proceeds of the financial package will benefit projects that have high development outcomes and promote regional integration.
SOURCE African Development Bank (AfDB)