MBCA gets US$122,5m credit kitty

17 May, 2015 - 00:05 0 Views

The Sunday Mail

MBCA Bank, a unit of South Africa’s Nedbank group, has mobilised US$122,5 million in lines of credit this year for on-lending to critical sectors of the economy such as manufacturing and agriculture.

The bank’s MD, Dr Charity Jinya, told The Sunday Mail Business recently that the facilities included US$27,5 million to finance the tobacco value chain from contract growing, the purchase of green leaf, processing through to export of the crop.

“MBCA Bank also facilitated a US$75 million direct line to its clients from Nedbank. The bank also negotiated a US$20 million line of credit to finance equipment on a medium-term basis. The medium-term loans assist companies to finance their capital expenditure and have a tenure of up to 36 months,” said Dr Jinya.

There are also additional products targeting SMEs and home-seekers.

MBCA has evolved over the years from targeting large companies and high net worth individuals to a bank for a wider market.

Added Dr Jinya: “A variety of products have been developed to enable our clients to capitalise on the opportunities presented by a more dynamic business environment. We strive to continuously improve our customer service standards and to remain relevant to the market segments we serve.

“Moreover, we have a very supportive board and the assistance we receive from Nedbank, our major shareholder has been invaluable in achieving our goals.”

Plans are underway to strategically position the bank’s footprint in the country’s major cities in preparation for anticipated economic growth.

Two new branches will be unveiled in Harare and Gweru, adding to the existing eight.

“The number of these channels and timing will depend on our assessment of the opportunities in the market. At present there are definite plans to open new branches in the central business area of Gweru and Harare in the industrial site, Msasa,” explained Dr Jinya.

MBCA’s net profit rose 33 percent to US$5,4 million in the year ended December 31, 2014 from a year ago as net interest income rose by US$2,2 million.

The bank is introducing a new product where prospective homeowners channel their current monthly rentals towards mortgage payments.

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