Bancabc Signs Loan Deal With EIB

| December 8, 2014 | 0 Comments

BancABC has secured a deal with the European Investment Bank (EIB) worth 25 million euros ( about P290 million) to acquire loans to finance the bank’s corporate banking and SME operations.

Speaking at the signing ceremony recently, BancABC managing director, Mr Jitto Kurian announced that the deal would go a long way in catalysing business activity, the private sector and subsequently making a significant contribution to the economy.

Mr Kurian also said loans would provide capital investment for private businesses, particularly mid-size corporates and SMEs, assist them to expand their operations and in turn create employment opportunities.

He noted that 20 million and 5 million Euros would be used to finance corporate banking activities and SME respectively. “Funds will be available to the existing and new customers in Euro, US Dollar or BWP currencies,” Mr Kurian said.

Furthermore, he explained that loans for corporated carried a repayment period of seven years while the SME loans carried seven to eight years depending on the currency, and a grace period of two years on capital repayment. Again, he said interest rates would also vary from fixed to variable depending on the currency the loan was drawn in.

EIB vice-president responsible for lending in sub-Saharan Africa, Mr Pim van Ballekom said the new lending programme with BancABC would unlock business opportunities by companies across Botswana.

“This reflects our shared goals of ensuring that companies involved in a broad range of sectors and operating in Botswana can access finance to invest in expanded operations, build new facilities and create jobs,” Mr van Ballekom said.

He also said that was EIB’s first operation in Botswana for many years, thus were looking forward to supporting further engagement in the country.

Source : BOPA

Source : Botswana Daily News

Category: Business & Finance

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