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IFC Capitalization Fund and Africa Capitalization Fund Invest in NBS Bank to Support Malawi’s SME, Agriculture Sectors


In Nairobi:
Neha Sud

Phone: +254 72 034 8499

E-mail:
nsud@ifc.org

In Washington:

Alexandra Klopfer

Phone: +1 202 473 4645

E-mail:
aklopfer@ifc.org


Blantyre, Malawi, August 9, 2011 — IFC Capitalization Fund and Africa Capitalization Fund will invest up to $10 million in equity in NBS Bank, Malawi’s third largest bank in terms of loans and deposits, to support its capital base and help it increase lending to small and medium enterprises, including those in the agriculture sector.

Mr. Felix Mlusu, Chairman of NBS Bank, said, “NBS will use the financing provided by the IFC Capitalization Fund and Africa Capitalization Fund to develop innovative products for agribusiness and small and medium size portfolio borrowers.  The investment should also help NBS strengthen its capital base, and allow us to strengthen corporate governance and risk management systems.”


“We are very pleased to bring the two funds’ capital into the systemic, fast growing bank in Malawi,” said Marcos Brujis, who heads the IFC Capitalization Fund and Africa Capitalization Fund.  Jean Philippe-Prosper, IFC’s Director for East and Southern Africa, said, “NBS Bank and IFC share a common goal of supporting small and medium enterprises to create inclusive economic growth in Africa.  Our partnership will help expand financial services and job opportunities in Malawi’s growing economy, and underscores our commitment to supporting Malawi’s banking sector.”  


NBS will use a large portion of the funds to deepen its support for new growth markets in Malawi, particularly in agriculture and small-scale subsistence farming.


The IFC Capitalization Fund is a global equity and subordinated debt fund founded by IFC and the Japan Bank for International Cooperation that supports banks considered vital to the financial systems of emerging market countries. The Africa Capitalization Fund includes investments by the African Development Bank, the European Investment Bank, and the OPEC Fund for International Development, and was created to provide equity to banks considered vital to financial systems in Africa.  Both Funds are managed by IFC Asset Management Company, LLC, a wholly-owned subsidiary of IFC.


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.

About IFC Asset Management Company

IFC Asset Management Company, LLC, a wholly-owned subsidiary of IFC, invests third-party capital, enabling outside investors to benefit from IFC’s expertise in achieving strong equity returns as well as positive development impact in the countries in which it invests. It manages the $3 billion IFC Capitalization Fund, the $1 billion IFC African, Latin American and Caribbean Fund and the African Capitalization Fund.


About Japan Bank for International Cooperation (JBIC)

The Japan Bank for International Cooperation is the international wing of the Japan Finance Corporation, Japan’s policy-based financing institution established on October 1, 2008. JBIC provides policy-based finance with a mission to contribute to the sound development of the Japanese and international economy, including finance responding to disruptions in financial order in the international economy. For more information, visit
www.jbic.go.jp/en/.

About NBS Bank

Visit
www.nbsmw.com.