[2008-07-04]  ZNCB, Dutch bank in $35m deal
THE Zambia National Commercial Bank (ZNCB) is to sign a US$35mn financing arrangement with FMO Netherlands Development Financing Bank to strengthen the bank’s lending capacity to agriculture and industrial sectors, managing director, Mark Wiessing, has said. Mr. Wiessing said the deal between the ZNCB and FMO would be signed in the next two weeks. Speaking at a media briefing in Lusaka yesterday, Mr. Wiessing said that agriculture was a key economic sector and that the funding arrangement would go a long way to support growth in the economy. He said FMO supported the private sector in developing countries and emerging markets through loans, participations, guarantees and other investment promotion activities. Mr. Wiessing also commended the Government for selecting ZNCB for the oil financing arrangement. He said the bank was in discussions with Rabobank to develop a structure with the Government because of the huge sums of money involved in the undertaking. He also said the process of Initial Public Offer (IPO) for ZNCB had started and was expected to be concluded by September or October, after which the Zambia Privatisation Trust Fund (ZPTF) would float 25.8 percent of the bank’s shares on the Lusaka Stock Exchange (LuSE). Under the current ownership for the bank, the Government has 25 percent shares, ZPTF with 25. 8 percent while private individuals have 0.2 percent and the Rabobank Group about 49 percent shares. Mr. Wiessing said ZNCB was currently rebranding although its name would not change. He also said the bank had expanded its Automated Teller Machines (ATMs) network to 58 by June 2008 and that it was targeting to have 100 ATMs network by the end of the year and would in the next few months open a branch at Chirundu. On the four per cent shares to be acquired by the Zambia National Farmers Union (ZNFU), Mr. Wiessing said the union had not yet acquired the shares. “The four per cent shares are still available and once ZNFU buys the shares, then Rabobank will remain with 45 shares in the bank. ‘‘Otherwise we are still waiting for an appropriate time for ZNFU to buy the shares,” Mr. Wiessing said.


Source: Times of Zambia