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MBCA gets $75 million from Nedbank

by Business reporter
19 Jul 2013 at 04:01hrs | Views
MBCA Bank has secured US$75 million from majority shareholder, Nedbank Group of South Africa, to provide lines of credit to Zimbabwean companies.

MBCA managing director, Charity Jinya, last week told The Financial Gazette that the funds would be used for lending to the agricultural and mining sectors.

"MBCA Bank received a composite line of credit from its parent company Nedbank South Africa amounting to US$75 million. The funds will assist in meeting the requirements of the bank's agricultural and mining sector clients," said Jinya.

Nedbank, South Africa's fourth largest bank by market capitalisation and customer numbers, holds a controlling 74 percent stake in MBCA Bank.

Banca de Credito Finanziaio of Italy and Rothschild & Sons of the United Kingdom are the other two offshore partners who own 10,5 and 3,26 percent shareholding in the financial services firm respectively.

Old Mutual Zimbabwe Limited owns 18,30 percent while employees have a stake through a Share Trust controlling 0,66 percent.

MBCA Bank is one of the four foreign-owned banks under pressure by government to cede majority shareholding to locals under the contentious indigenisation law put in place in 2007.

Jinya recently said negotiations with government were on-going for a deal on the indigenisation process, revealing that parties were yet to reach a deal agreeable to all parties.

Source - fingaz