| Fri 7 Jun 2002, 0:00 | | African Bank Investments Limited - Press Release |
|
African Bank Investments Limited - Press Release
African Bank Investments Limited
(Incorporated in the Republic of South Africa)
(Registration number 1946/021193/06)
(ISIN: ZA000030060)
(Share code: ABL)
("ABIL" or "the Company")
International Finance Corporation
2121 Pennsylvania Avenue, NW
Washington, DC 20433, USA
IFC INVESTS 425 MILLION RAND IN AFRICAN BANK TO SUPPORT MICRO-LENDING
OPERATIONS IN SOUTH AFRICA
Washington D.C., June 7, 2001- The International Finance Corporation, the
private sector lending arm of the World Bank Group, has signed an agreement
to provide a ZAR 425 million (about US$42 million equivalent) seven-year
loan facility to African Bank, the leading micro-lending institution in
South Africa-representing IFC`s largest investment to date in the country
and its first fixed rate local currency facility in Sub-Saharan Africa.
With a market share of over 30 percent and assets in excess of US$500
million, African Bank is the largest unsecured credit provider to low-income
South Africans. It is the country`s 10th largest banking institution in
terms of assets, the 6th largest in terms of profitability, and is listed on
the Johannesburg Stock Exchange. African Bank will utilize IFC`s loan
facility to support further growth in its micro-enterprise lending business
and expand its personal loan business to low-income individuals. More than
60 percent of African Bank`s personal loan clients utilize their loans for
education and housing.
Haydee Celaya, Director of IFC`s Sub-Saharan Africa Department, said, "In a
market where the majority of employed South Africans still lacks access to
cash credit, financial institutions such as African Bank play a significant
role in deepening financial markets and enabling previously disadvantaged
people to participate in the economy."
"African Bank was founded on the basic need for developmental finance in
South Africa, and has been at the forefront of opening up the supply of
credit to previously unbanked sectors of the South African economy," said
Leon Kirkinis, Chief Executive of African Bank Investments Limited (ABIL).
"It is, therefore, appropriate," he said "that the IFC, which plays a
leading role in developmental finance worldwide, has selected African Bank
as its partner for this transaction." Kirkinis also noted that the ABIL had
been a forerunner in the development of micro-enterprise finance through its
subsidiary, the African Contractor Finance Corporation (ACFC).
IFC`s mission is to promote sustainable private sector investment in
developing countries, helping to reduce poverty and improve people`s lives.
IFC finances private sector investments in the developing world, mobilizes
capital in the international financial markets, and provides technical
assistance and advice to governments and businesses. Since its founding in
1956 through the close of the last fiscal year on June 30, 2001, IFC
committed more than US$31 billion of its own funds and arranged US$20
billion in syndications for 2,636 companies in 140 developing countries.
IFC`s committed portfolio at the end of FY01 was US$14.3 billion.
ends
Issued by African Bank Media Relations on behalf on African Bank and the
IFC:
011-256-9050 or 082 453 2070
For further information contact:
Henning F. Amelung- Senior Investment Officer
Phone: (27-21) 418-7180
Fax: (27-21) 418-7183
Mobile: 083 441 2422
E-mail: hamelung@ifc.org
Wim Erasmus - Group Treasury African Bank
Phone: (27-11) 256-9758
Fax: (27-11) 256-9199
Mobile: 082 452 6767
E-mail: werasmus@africanbank.co.za
Date: 07/06/2002 11:41:41 AM Produced by the SENS Department
