Mozambique: Procredit bank issues bonds

16 March 2009

Maputo, Mozambique, 16 March – Mozambican bank, Banco Procredit said Thursday in Maputo it planned to issue bonds totalling 75 million meticals (US$3 billion) with a five-year term to be listed on the Mozambican Stock Exchange.

The bond issues, the bank’s managers said, will offer local investors the opportunity to apply their funds to a long term investment as well as to better manage their liquidity and become more autonomous in relation to current sources of funding, namely local and foreign banks.

According to the bank’s financial director, Zulficar Buraimo, the micro-credit bank will apply the cash it obtains from the bond issue to expanding its branch network, development and introduction of products such as the Visa Electron card, as well as building a training centre in order to improve the technical quality of its staff.

Banco Procredit is part of a worldwide network made up of 22 banks, which operate in countries in Eastern Europe, Latin America and Africa and focuses on so-called developing countries and economies that are in a transitional phase.

The bank focuses on providing loans to very small, small and medium-sized companies, as according to its policy it is theses businesses that create the most jobs and provide a vital contribution to economies. (macauhub)