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Washington, D.C., October 18, 2006
— The International Finance Corporation, the private sector arm of the World Bank Group, today announced it will provide an $11 million subordinated loan to Stanbic Bank Zambia Limited to strengthen the bank’s capital base, enabling it to expand lending to small and medium enterprises. This is the first financing under IFC’s $75 million multicountry facility with Standard Bank Group.
Thierry Tanoh, IFC’s Director for Sub-Saharan Africa, said, “Stanbic Zambia is a well-managed financial institution and has established itself as the prime creditor to large corporations and small and medium enterprises in Zambia. IFC’s investment will promote confidence in the country among foreign investors."
IFC signed an agreement with Standard Bank Group in June 2006 to provide long-term subordinated loans qualifying as tier II capital to Standard Bank Group’s banking subsidiaries in the Democratic Republic of Congo, Ghana, Kenya, Malawi, Mauritius, Mozambique, Tanzania, Uganda, and Zambia. The loans, which are subject to prior regulatory approvals for tier II compliance, will enable these subsidiaries to strengthen their capital base and expand operations across Sub-Saharan Africa.
Jyrki Koskelo, IFC's Director for Global Financial Markets, said, "Through our partnership with the Standard Bank Group, we are continuing our significant role in the development of Africa’s financial sector and, at the same time, supporting smaller businesses, which are important sources of employment and economic activity in Zambia.”
Larry F. Kalala, Stanbic Zambia’s Managing Director, said, "IFC's investment in Stanbic Zambia reflects the strength of the relationship between our two financial institutions, one that contributes to the strengthening of the local financial sector. Stanbic Zambia aims to serve as a model institution to Zambia’s financial sector."
About IFC
The International Finance Corporation, the private sector arm of the World Bank Group, is the largest multilateral provider of financing for private enterprise in developing countries. IFC finances private sector investments, mobilizes capital in international financial markets, facilitates trade, helps clients improve social and environmental sustainability, and provides technical assistance and advice to businesses and governments. From its founding in 1956 through FY06, IFC has committed more than $56 billion of its own funds for private sector investments in the developing world and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. With the support of funding from donors, it has also provided more than $1 billion in technical assistance and advisory services. For more information, visit
www.ifc.org
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About Stanbic Zambia
Stanbic Bank Zambia offers universal banking services through 11 locations across the country. Its products included deposits, loans and guarantees, trade finance, foreign exchange, and treasury services. With total assets of about $380 million, Stanbic Zambia is one of the country’s largest private sector banks. It is a profitable bank, with a return on equity of 50 percent in 2005. The bank was formerly known as ANZ Grindlays Bank until 1992, when it was acquired by the Standard Bank Group. Stanbic Zambia is a part of Stanbic Africa network banks.
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