MBCA Bank gets $20m

Business Reporters
AFRICA Export and Import Bank has availed a $20 million line of credit to MBCA Bank for medium-term funding, managing director Dr Charity Jinya said yesterday.The funding under the facility will cater for clients willing to purchase or upgrade machinery, retool manufacturing operations and fund expansion programmes in key sectors of the economy including agriculture, mining, construction and the health.

“The main purpose of the line is to fund capital expenditure mainly complete technology renewals and retooling programmes to enhance productivity for both local and export markets,” said Dr Jinya.

“At MBCA Bank, we understand that an economy can only perform well with state-of-the-art equipment and healthy workers hence the specific inclusion of the health sector in our funding programmes.”

The tenures for the facility will be for periods of up to 60 months from the date of signing the facility documents, and will be subject to annual reviews at respective anniversary dates.

Draw downs under the facility may be in the form of direct advances such as loans and or letters of credit in line with client requirements.

Dr Jinya said the repayments for the advances under the facility will be on monthly or quarterly instalments in line with cash flows.

A competitive price is offered and is based on the risk profile allocated to a particular client and the quality of the security offered.

MBCA Bank was established in 2004 after changing from Zimbabwe oldest merchant bank – Merchant Bank of Central Africa Limited – which was incorporated in 1956.

MBCA Bank is a wholly owned subsidiary of MBCA Holdings whose shareholders (directly or indirectly) include Nedbank Bank of South Africa, Old Mutual Zimbabwe Limited, Mediobanca Banca de Credito Finanziaio of Italy and MBCA Employee Share Trust.

Privileged with access to the cutting edge of global capital markets through its shareholder network, the bank has numerous correspondent bank relationships in all financial centres worldwide.

This enables it to access high level technical expertise and sources of competitive finance on a worldwide basis for the benefit of its clients.