Home » General » Atlas Mara Facilitates U.S $225 Million for Bancabc

LONDON Stock Exchange-listed concern Atlas Mara has raised $225 million in credit lines since it acquired a 98,7 percent stake in ABC Holdings Limited.

The investment company has already poured $100 million into the banking group aimed at strengthening the group’s funding and liquidity position.

Since the acquisition of the majority stake in BancABC, Atlas Mara has closed the several financing deals with development finance institutions.

The company now holds 98,7 percent of BancABC.

It arranged a euro65 million loan facility with the European Investment Bank, $50 million loan facility with the African Development Bank for on-lending to Small to Medium Scale Enterprises and small corporates.

ATMA also arranged a facility of $7,5 million to BancABC Zambia with the World Business Capital to support the increasing demand in the country for SME lending.

The company said it will continue negotiations with DFI agencies to broaden its funding and liquidity base.

ABCH acting group chief executive officer Dr Blessing Mudavanhu said the major benefits of the ATMA investment include access to more funding, management depth and a ger technology platform.

BancABC will benefit from being a part of a larger group which is poised to be a significant player in the sub-Saharan landscape.

In the 12 months to December 2014, the group recorded an attributable loss of BWP438 million compared to an attributable profit of BWP198 million achieved in 2013. This was largely due to increased impairments, reduced margins and increased operating expenses.

The bank’s Zimbabwe arm accounts for 23 percent of the group’s non-performing loans.

“The bulk of the credit impairment charges incurred during 2014 were however primarily once-off and should be seen as part of the group’s conservative approach towards managing credit risk,” said Dr Mudavanhu.

He said a team of experts has been engaged to pursue the bad loans as the bank continues to focus on improving its credit management processes and building a quality loan portfolio across all business segments.

“A dedicated team of highly experienced staff was also set up to collect non-performing loans. Changes undertaken to date are already bearing fruit and it can be expected that going forward, the groups’ credit impairments will be brought in line with its peers,” said Dr Mudavanhu.

Banking subsidiaries recorded an attributable loss of BWP65 million compared to an attributable profit of BWP310 million registered in 2013, with all entities registering a decline in profitability largely due to higher impairments.

BancABC Zimbabwe posted an attributable loss of BWP3 million compared to an attributable profit of BWP118 million in 2013. This was due to increased impairments due to a tough operating environment.

Dr Mudavanhu said BancABC Tanzania was the group’s “problem child”.

“BancABC Tanzania posted an attributable loss of BWP123 million. This was higher than the loss for prior year of BWP20 million largely due to a mix of higher impairments, lower trading income as well as increased operating expenses in the year under review.

Source : The Herald