MAURITIUS COMMERCIAL BANK LOC II


Aperçu

  • Référence: P-MU-HAB-002
  • Date d’approbation: 11/09/2013
  • Date de début: 29/10/2013
  • Date d'évaluation: 19/06/2013
  • Statut: En coursOnGo
  • Agence d'implémentation: The Mauritius Commercial Bank Limited
  • Emplacement: MAURITIUS

Description

A financial package including a senior loan and a subordinated debt to Mauritius Commercial Bank (MCB) for on-lending to large and medium enterprises in Mauritius and neighbouring countries such as Madagascar, Mozambique and Seychelles. MCB


Justificatif

The project aims to provide MCB with a LOC with a regional focus for USD 150 mln for on-lending to corporate/SMEs customers in tourism, manufacturing, transportation, financial and business services, telecommunications and construction within Mauritius, the Indian Ocean Region and East Africa. The LOC will promote regional integration through the lending activities of MCB and its subsidiaries in 8 Indian Ocean and East African countries. It will assist MCB manage the current assets/liabilities mismatches in its balance sheet. As at 30th June 2010, MCB had more than MUR 60 bln (USD 2 bln) worth of loan assets in the maturity bucket of 3 years and above; matched against liabilities of MUR 5 bln (USD 167 mln) in the same maturity bucket thereby creating a liquidity gap of more than USD 1.8 bln. The LOC will also assist MCB manage the continuing negative long lasting impacts of the global economic crisis including the reduction in lines of credit available to MCB from international banks due to a combination of risk aversion by international lenders and general contraction of credit available to emerging markets, Africa in particular. The proposed transaction will be a 7 year LOC with an acceptable grace period still to be discussed and agreed with MCB. The LOC will be unsecured.

ADB is being requested by MCB to extend the LOC with regional focus of USD 150 mln with the objective of:

(i) using MCB to channel long term project finance to regional member countries where MCB has a presence;

(ii) make available to MCB long term USD funding to address the fall in USD funding available to MCB due to the withdrawal/reduction in lines of credit from international banks as a result of the global economic crisis; and

(iii) support MCB


Bénéfices

Analysis of Economic Impact: The proposed LOC is expected to help to address the economic challenges faced by Mauritius and other regional countries which will benefit from the LOC, specifically the availability of long term F/X funding. The LOC will enable MCB extend assistance to important economic sectors that will support the Mauritian and other regional economies.

Environmental and Social Sustainability: MCB has an Environmental Management Policy in place. The project appraisal team will look closely at the policies and structures that MCB has put in place to ensure that they are aligned to ADB


Contacts clés

BANDA Jonathan Richard Kamkosi - OPSD4


Coûts

Source Montant
BADUSD 94.709.526
DeltaUSD 94.709.526