South African-based banking group, Absa, on Tuesday, secured a $473 million deal with the Multilateral Investment Guarantee Agency, as it seeks to expand financing across seven Sub-Saharan countries.
The agreement which will be valid for 15 years will enable Absa hedge against risks related to the mandatory capital reserves that banks are required to hold with central banks under Absa’s subsidiaries in Ghana, Kenya, Mauritius, Mozambique, Seychelles, Uganda and Zambia.
The agreement which will be valid for 15 years will enable Absa hedge against risks related to the mandatory capital reserves that banks are required to hold with central banks under Absa’s subsidiaries in Ghana, Kenya, Mauritius, Mozambique, Seychelles, Uganda and Zambia.
“It will also free our subsidiaries in the region to provide more financing to corporates, small- and medium-sized enterprises and projects that will benefit the climate,” the bank said in a statement.
According to Absa, the deal puts it as the first African banking group to enter into such an agreement with MIGA, a World Bank organisation with a mandate that includes promoting investment by providing guarantees against political risk.
According to Absa, the deal puts it as the first African banking group to enter into such an agreement with MIGA, a World Bank organisation with a mandate that includes promoting investment by providing guarantees against political risk.
Absa Group Limited is listed on the JSE and is one of Africa’s largest diversified financial services groups with a presence in 12 countries across the continent and around 42 000 employees.
The group owns majority stakes in banks in Botswana, Ghana, Kenya, Mauritius, Mozambique, the Seychelles , South Africa (Absa Bank), Tanzania (Barclays Bank in Tanzania and National Bank of Commerce), Uganda and Zambia.
It also has representative offices in Namibia and Nigeria, as well as insurance operations in Botswana, Kenya, Mozambique, South Africa, Tanzania and Zambia.
The group owns majority stakes in banks in Botswana, Ghana, Kenya, Mauritius, Mozambique, the Seychelles , South Africa (Absa Bank), Tanzania (Barclays Bank in Tanzania and National Bank of Commerce), Uganda and Zambia.
It also has representative offices in Namibia and Nigeria, as well as insurance operations in Botswana, Kenya, Mozambique, South Africa, Tanzania and Zambia.
