DGAP-News: ADC African Development Corporation GmbH & Co. KGaA / Key
word(s): Miscellaneous
ADC's portfolio company BancABC secures USD 50 million trade finance
credit line from African Export-Import Bank ++ Funding will accelerate
growth
08.07.2011 / 11:49
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ADC African Development Corporation (ADC), ISIN DE000A1E8NW9, a fast
growing financial services group focusing on the fron-tier markets in
sub-Saharan Africa, is pleased to report that its portfolio company ABC
Holdings Limited (ADC shareholding: 20.1%), operating under the brand name
BancABC in five Southern African countries, secured a USD 50 million trade
finance credit line from the reputable African Export-Import Bank
(Afreximbank) to promote and facilitate trade in the group's operations.
The revolving trade credit line of USD 50 million will be marketed to large
and medium sized corporate entities as well as small and medium sized
enterprises (SMEs) in all the five countries of operations, namely the fast
growing markets of Botswana, Zambia, Mozambique, Tanzania and Zimbabwe.
This credit line is very important to firms operating in these countries,
as it enables them to obtain funding for their fast growing operations,
which have been constrained to short term financing and a lack of liquidity
in the last years.
BancABC group Chief Financial Officer Beki Moyo said: 'The trade finance
facility will enhance our capacity to boost regional trade and exports to
international mar-kets. We see huge, and in some cases, practically
untapped opportunities for trade business in these markets and beyond.'
The approval of this USD 50 million credit line was granted by Afreximbank,
after ADC acquired a 20.1% strategic share-holding in Banc ABC at the end
of February this year. Since then, BancABC, which is ADC's only stock
exchange listed investment, has developed favorably and the stock market
valuation has increased significantly by above 50%, an addition to the
book value of ADC by over USD 7 million since investment. Other
shareholders in BancABC are the International Finance Corporation (World
Bank Group), the Dutch FMO and the management.
Olaf Meier, Managing Director of ADC, comments: 'We are very satisfied with
our investment in BancABC. We will be able to report a significant increase
in value to our shareholders in ADC's Q2 numbers due to BancABC's strong
growth. Its wide regional presence in Southern Africa is the ideal building
block to form a strong banking group in sub-Saharan Africa, with ADC's
assistance and commitment. We are confident that this credit facility is
one important step to significantly expand operations and BancABC's and so
ADC's value.'
++ About BancABC
BancABC's parent company is ABC Holdings Limited. The company is registered
in Botswana, has a primary listing on the Botswana Stock Exchange (ABCH.BG)
and a secondary listing on the Zimbabwe Stock Exchange (ABCH.ZH). BancABC
ope-rates in Botswana, Mozambique, Tanzania, Zambia and Zimbabwe and has a
group services office located in Johannesburg, South Africa. Historically,
BancABC was a merchant bank offering a diverse range of services. These
included wealth ma-nagement, corporate banking, treasury services, leasing,
asset management and stock broking. The Group is now expanding into the
retail space. BancABC's vision is to become Africa's preferred banking
partner by offering world-class financial solutions.
++ About ADC
ADC African Development Corporation, ISIN DE000A1E8NW9 (ticker symbol:
AZC.GR), was established in September 2007 and quickly positioned itself as
one of the leading investors for banks and insurance companies in the
above-average growth markets of sub-Saharan Africa. The company's success
is primarily due to its local management team, which follows international
best practice principles to further develop banks and implements
conventional international processes to in-crease their profitability. As
the second international emerging market investor in the world, ADC was
integrated into the insurance solution offered by the Multilateral
Investment Guarantee Agency ('MIGA'), a member of the World Bank Group,
pri-marily due to its strong operational approach and adherence to the
highest ethical standards. This insurance offers protection against a
variety of political risks, in particular the risk of radical political
change.
Contact:
Olaf Meier
Member of the Board
investor-relations@african-development.com
T +49 69. 719 12 80 123
End of Corporate News
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Language: English
Company: ADC African Development Corporation GmbH & Co. KGaA
Grüneburgweg 18
60322 Frankfurt/Main
Deutschland
Phone: +49 69 719 12 80 00
Fax: +49 69 719 12 80 011
E-mail: info@african-development.com
Internet: www.african-development.com
ISIN: DE000A1E8NW9
WKN: A1E8NW
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf
End of News DGAP News-Service
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131352 08.07.2011
DGAP-News: ADC's portfolio company BancABC secures USD 50 million trade finance credit line from African Export-Import Bank ++ Funding will accelerate growth
| Source: EQS Group AG