| Thu 30 Jun 2011, 17:32 | | MTL - Mercantile Bank Holdings Limited - Voluntary business update |
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MTL
MTL
MTL - Mercantile Bank Holdings Limited - Voluntary business update
Mercantile Bank Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration Number 1989/000164/06)
Share code: MTL ISIN: ZAE000064721
("Mercantile" or "the company")
VOLUNTARY BUSINESS UPDATE
IFC, a member of the World Bank Group, is mobilising an equivalent of up to 50
million Euros in South African Rand financing for Mercantile to help it increase
its lending to smaller businesses, including financing energy efficient and
renewable energy projects to reduce CO2 emissions and energy costs.
The investment consists of a loan of up to Euro48.4 million from IFC`s own
account and a second loan of up to Euro1.6 million from the World Bank-
administered Clean Technology Fund. The investment will help South African SMEs
more easily obtain the funds they need to grow, supporting the long-term
development of the sector. IFC`s financing in South African Rand will reduce
risk for the smaller businesses by enabling access to long-term local currency
funding to spur economic development.
Dave Brown, CEO of Mercantile Bank said, "This partnership funding will enhance
our capacity to grow our presence in supporting the development of private
business in South Africa and open up opportunities to finance energy efficient
projects"
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Thierry Tanoh, IFC`s Vice President for Sub-Saharan Africa, said, "IFC`s
investment in Mercantile Bank highlights our ongoing commitment to the small and
medium-sized business sector in South Africa and across the continent. Our
partnership with Mercantile Bank will help more enterprising Africans to obtain
loans to expand their operations and to finance energy efficient projects."
Supporting the growth of small and medium sized enterprises is a top strategic
priority of IFC`s work in Africa, where smaller businesses employ the bulk of
the working population but often struggle to obtain long-term financing.
The investment in Mercantile will also support South Africa`s efforts to reduce
its CO2 emissions, by making funds available to businesses seeking to adapt
renewable energy or more energy efficient technologies. In fiscal year 2010,
more than $1.64 billion of IFC`s global investments went to finance renewable
energy, energy efficiency, and other climate related business, up from $1.03
billion in fiscal year 2009.
About IFC
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in developing countries. We create
opportunity for people to escape poverty and improve their lives. We do so by
providing financing to help businesses employ more people and supply essential
services, by mobilizing capital from others, and by delivering advisory services
to ensure sustainable development. In a time of global economic uncertainty, our
new investments climbed to a record $18 billion in fiscal 2010. For more
information, visit www.ifc.org.
Johannesburg
30 June 2011
Sponsor to Mercantile: Bridge Capital Advisors (Proprietary) Limited
Date: 30/06/2011 17:32:01 Produced by the JSE SENS Department.
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