FINANCIAL services firm NMB Bank Limited Zimbabwe (NMB) is working towards getting a US$40 million additional line of credit in a bid to boost trade finance, businessdigest can reveal.
The group chief executive officer, Gerald Gore told businessdigest that they were in the final stages of discussion for US$25 million, while talks on the rest of the money were in the early stages.
The bank has secured US$57,5 million in funding, comprising US$20 million from Afreximbank, €12,5 million (US$13,58 million) from the European Investment Bank, US$10 million from the Trade and Development Bank, and a US$15 million guarantee facility from the African Development Bank (AfDB).
“We have US$25 million and another US$15 million which I think is still in the early stages. (On the) US$25 million (facility), we have already received approval and for the other one, they just concluded that they do diligence and so forth,” Gore said.
“On partners in this deal… they are all from Europe.”
On the developments of the last signed US$15 million credit facility received from AfDB, Gore said the two banks were in the process of finalising legal processes before disbursement.
“So, we did agree on the AfDB (facility), and we are now finalising the paperwork. I think that is the process that we are currently going through,” Gore said.
“But we already have people who are waiting to get the line, the moment we open it up.”
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He noted that if any opportunities arose within the United States of America, the bank was ready to try and exploit them, adding that it was maintaining the relationships that were already in existence in correspondent banking.
This comes as the US government this year relaxed restrictions against Zimbabwe.
“I think it is something that we can explore, but I would not say there is anything specific on the ground. I think we are still running with the relationships we have on the corresponding bank, but, if things open up there and there are opportunities, we can try and exploit that,” Gore noted.
The bank has partnered with the government on the National Enhanced Agriculture Productivity Scheme and has funded 2 480 hectares of maize and 1 730 hectares of soya beans and is targeting 2 500 hectares of winter wheat this year.
“On maize and soya, we have funded slightly under 5 000 hectares.
"And so how we are doing it is both directly funding the farmers, but we also fund input providers,” Gore said.
The bank is also working on floating an agro-bond to support farmers in the country.
“So, we fund fertiliser companies, companies that supply seed, and so they are all part of the value chain. And then now we are looking at wheat. We are also going to be floating a bond, an agro bond, to support these farmers,” the NMB chief said.
“We started last year with the summer cropping, and then we are
working on the winter programme.”
Gore also stated that the bank has incorporated technology in most of
its operations, adding that this has not affected its human capital but
rather has improved efficiency within its operations.
