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MCB 2018: A loan to a bank to finance companies and infrastructure projects in Mauritius and Africa.
Project
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Signature date
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Location
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Mauritius
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Financing tool
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Financing amount (Euro)
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86117809.16
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Financing details
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USD 100m loan (including USD 50m of AFD subparticipation)
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Customer
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MAURITIUS COMMERCIAL BANK LIMITED
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Type of customer
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Financial institution
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Country of headquarters
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Mauritius
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Project number
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PMU1043
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Environmental and social ranking
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IF-B
This information is given at the time of signature, without prejudice to any developments in the operation/project.
The USD 100m loan will support MCB, a longstanding partner of PROPARCO, for the development of its activities in Africa. By allowing the bank to develop its loans to companies and infrastructure projects in Mauritius and Sub-Saharan Africa, this project will support economic growth and job creation on the continent.
Client presentation
MCB is Mauritius’ oldest bank. With a balance sheet of EUR 8.5bn, 39 branches and 2,800 employees, MCB serves a diversified clientele of a million clients. MCB Group is listed on the Mauritius Stock Exchange. MCB operates in the Indian Ocean directly (Madagascar, Seychelles, Maldives, Réunion, Mayotte) or via minority shareholdings (BFCOI, SG Moçambique). The bank has offices in Kenya, South Africa and France.
Project description
This financing will support MCB’s strategy to strengthen its activity in Africa. It is earmarked to cover corporate and infrastructure needs in continental Africa and the Indian Ocean, and is in the form of two USD 75m senior loans. A first 7-year tranche is dedicated to medium-term corporate projects, while the second 12-year tranche is dedicated to more long-term infrastructure projects, mainly in Sub-Saharan Africa.
This project is part of the 2X Challenge initiative. This multi-stakeholder initiative aims to support projects that empower women as entrepreneurs, business leaders, employees and consumers of products and services, and increase their participation in the economy.
This initiative thus contributes to Sustainable Development Goal #5 (Gender Equality).
Project impact
By assisting the expansion of this financial institution, the project will support the country’s economic fabric and will therefore have a significant impact on economic growth and job creation. In addition to supporting MCB’s development abroad, it will also help the Mauritian bank to strengthen its commitment and its impact in terms of sustainable development.