Harare, 19 March 2014. PROPARCO announces the signing of a 5-year loan agreement of US$ 10m with Central African Building Society (CABS) to support its growth.
The signing ceremony took place, today, in Harare at the Residence of the Ambassador of France to Zimbabwe, H.E.Mr. Laurent Delahousse, in the presence of Jean-Michel Debrat, Regional Director of Agence Française de Développement (AFD) for Southern Africa and CABS Managing Director, Kevin Terry.
With total assets over US$ 575 million, a strong mortgage asset base and a range of financial service offerings, CABS ranks in the top 3 of Zimbabwean banks. Since 1949, CABS has maintained its position as the largest mortgage lender in the country, and has of recent extended its product offering to provide comprehensive commercial banking and “bancassurance” services to individuals, SMEs and corporate customers. With the support of Old Mutual Zimbabwe Limited as a shareholder, CABS has built over the years a renowned brand image trusted by Zimbabwean individual and business customers.
PROPARCO’s loan will allow CABS to finance the development of its credit portfolio and extend the maturity of its financing for Zimbabwean businesses as funding is only available on a very a short term basis. In a context of economic restructuring and multiple financing needs, it will help the private sector to grow and support the development of Zimbabwe.
“With this second transaction in the banking sector in Zimbabwe, Proparco hopes to play a catalytic role by attracting foreign investors and contributes to support the financing need of the economy. This partnership with CABS is all the more interesting that it will foster medium and long term credit to corporates and individuals in particular in the mortgage sector.”, says Jean-Michel Debrat, Regional Director of Agence Française de Développement for Southern Africa.