African Development Bank approves Rs6.7bn to enhance MCB’s capital base

The African Development Bank Group has approved $147 million (over Rs6.7 billion) in subordinated debt to the Mauritius Commercial Bank Ltd to enhance its capital base and mobilise loan growth in the renewables, manufacturing healthcare and other sectors, including SMEs.    

The debt will reportedly take the form of a Basel III Tier 2 compliant bond to be issued by MCB.

The bank has recently been expanding its footprint into several African countries and is also deepening its intra-African trade financing activities.

The financing is expected to catalyse additional deposits to expand MCB’s loan book, benefiting several Mauritian and African corporates, as well as SMEs.

Over the next 5 years, the funding is expected to help create thousands of jobs within Africa, thereby improving livelihoods of several African households.

Source: ADB