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BH24 Reporter
HARARE – Atlas Mara Limited, the parent company of BancABC Zimbabwe, yesterday announced that it had reached agreement in principle for a $40 million debt facility.
The debt facility would replace the April convertible bond issued to Fairfax Africa Holdings Corporation, the group’s shareholder.
The proceeds would be used for general corporate purposes including replacing the April convertible, strengthening the company’s digital finance platform and supporting broader business growth and operations, said Atlas Mara.
The debt facility would have a three-year term maturing in or around July 2021, an average annualised cost of debt of approximately 10, 5 percent and is secured by a portion of the company’s indirect shareholding in Union Bank of Nigeria, said the Pan African financial services provider.
“We are pleased to announce this new financing, which is a strong indication of investor interest and support from our existing shareholders and the broader market,” said CEO John Staley.
Atlas Mara acquired 95, 8 percent in BancABC’s operations in Botswana, Zimbabwe, Zambia, Mozambique and Tanzania in 2014.
Bongani Ndlovu