FMO, The Netherlands Development Finance institution, (Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.) and I&M Bank (T) Ltd today announced the signing of a USD 12 million long term loan agreement. The long term loan will help I&M Bank (T) Ltd in onward lending to its customers and thereby stimulating economic growth and job creation through development of the SME and mid-corporate sector in the Country.
I&M Bank (T) Ltd is one of the leading commercial banks in Tanzania offering a full range of banking services targeted at corporates, small and medium-sized businesses, and individuals.
Mr Sarit S Raja Shah, the Chairman of I&M Bank (T) Ltd remarked “This facility strengthens our position and facilitates expansion of the resources available to the Bank in offering long term financing to the growing SME and Mid Corporate portfolio and thereby supports in accelerating economic growth and job creation in Tanzania. The facility reinforces the confidence and enhances an already existing relationship that FMO has with I&M Group”.
Mr. Baseer Mohammed, CEO of I&M Bank (T) Ltd said “this line from FMO supports the Bank in providing access to finance the SME and mid Corporates which the Bank has been strongly positioned with in the market. This line also helps in meeting the long term funding requirements and managing the maturity risk profile of the Bank.
Since the entry of I&M Group in Tanzania, the Bank expanded the branch network to 8 branches supported by ATMs and 24 /7 bulk cash deposit machines spread across the key strategic locations in the country. The Bank is equipped with state of the art technology and provides comprehensive banking products and solutions.
For FMO, this transaction represents the deepening of the existing partnership with the I&M Group. Nanno Kleiterp, CEO of FMO said: “This financing will enable I&M Bank (T) Ltd to stimulate job creation in Tanzania. It will provide support for SMEs which will enhance economic growth and innovation in the Tanzanian economy. I&M Bank (T) Ltd is a valuable addition to our portfolio in Tanzania and fits well in our strategy, which is focused on low income countries and SME financing. We look forward to building our relationship and continue to develop financing solutions together.”
FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 45 years. Their mission is to empower entrepreneurs to build a better world. They invest in sectors where they believe their contribution can have the highest long-term impact: financial institutions, energy and agribusiness. Alongside partners, they invest in the infrastructure, manufacturing and services sectors. With an investment portfolio of EUR 8 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally.