NMB mobilizes a line of credit of 40 million dollars

FINANCIAL services company NMB Bank Limited Zimbabwe (NMB) is working to secure an additional US$40 million line of credit in a bid to boost trade finance, businessdigest can reveal.

The group’s chief executive, Gerald Gore, told businessdigest that they were in the final stages of discussion for $25 million, while talks about the rest of the money were in the early stages.

The bank has obtained financing of 57.5 million dollars, of which 20 million dollars from Afreximbank, 12.5 million euros (13.58 million dollars) from the European Investment Bank, 10 million dollars from the Trade and Development Bank and a $15 million Guarantee Line from the African Development Bank (AfDB).

“We have $25 million and another $15 million that I think is still in the early stages. (In the case of) the $25 million facility, we have already received approval and for the other one, they just concluded that they do due diligence and so on,” Gore said.

“About the partners of this agreement… they are all from Europe.”

Regarding the development of the latest $15 million signed credit line received from the AfDB, Gore said the two banks were in the process of finalizing legal processes before disbursement.

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“So we reached an agreement on the AfDB (mechanism) and now we are finalizing the paperwork. I think that’s the process we’re going through right now,” Gore said.

“But we already have people who are waiting to have the line the moment we open it.”

He noted that if any opportunity arose within the United States of America, the bank was willing to try to exploit it, adding that it maintained the relationships that already existed in correspondent banking.

This comes as the US government this year relaxed restrictions against Zimbabwe.

“I think it’s something we can explore, but I wouldn’t say there’s anything specific on the ground. “I think we’re still working through the relationships we have with the relevant bank, but if things open up there and there are opportunities, we can try to exploit them,” Gore said.

The bank has partnered with the government on the National Agricultural Productivity Improvement Plan and has financed 2,480 hectares of corn and 1,730 hectares of soybeans and is targeting 2,500 hectares of winter wheat this year.

“In corn and soybeans, we have financed just under 5,000 hectares.

“So we’re doing it by funding farmers directly, but also funding input suppliers,” Gore said.

The bank is also working on issuing an agricultural bond to support the country’s farmers.

“So we finance fertilizer companies, companies that supply seeds, so they are all part of the value chain. And now we are looking at wheat. We are also going to issue a bond, an agricultural bond, to support these farmers,” the NMB chief said.

“Last year we started with the summer harvest and then

working on the winter program.”

Gore also stated that the bank has incorporated technology into most of its

its operations, adding that this has not affected its human capital but

rather it has improved efficiency within its operations.

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