Maputo, Mozambique, May 31, 2010
—IFC, a member of the World Bank Group, announced today that it will invest in Banco Comercial e de Investimentos to help Mozambique’s second-largest bank expand its retail operations, improve its balance sheet, and increase lending to smaller businesses, which face difficulty accessing credit across much of Sub-Saharan Africa.
BCI will use the $30 million loan from IFC to increase long-term financing to its clients, including individuals and small and medium enterprises. The loan will be IFC’s second to the bank, after an $8.5 million subordinated loan and advisory services package in 2008 to increase BCI’s capital and help expand its range of products and services to better serve smaller and women-owned businesses.
Ibraimo Ibraimo, Chairman of the Executive Committee and CEO at BCI, said, “IFC’s financing will provide Banco Comercial e de Investimentos with affordable, long-term financing and enable us to diversify our balance sheet. Banco Comercial e de Investimentos is committed to expanding our partnership with IFC to increase our loans in the retail sector and increase access to finance for smaller businesses, both important drivers of Mozambique’s economy.”
BCI has supported the growth of corporate banking in Mozambique and demonstrated success focusing on small and medium enterprises. Working with IFC, the bank aims to increase the volume of its loans to smaller businesses to the equivalent of more than $165 million over the next four years, from about $125 million currently. It also aims to expand its loans to individuals to a significant portion of its loan portfolio and increase its participation in syndicated loans.
Jean Philippe Prosper, IFC Director for Eastern and Southern Africa, said, “IFC is committed to strengthening our partnership with Banco Comercial e de Investimentos, which has recorded significant success in increasing access to finance for important sectors of Mozambique’s economy, including smaller businesses. IFC believes in our partnership with BCI, which reflects our strategy to work with financial institutions that share our commitment to increase access to financial services for businesses and people that need it the most.”
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.4 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org
.
