LONDON (Alliance News) - Atlas Mara Ltd Thursday said it has partnered up with the US government's development finance institution, the Overseas Private Investment Corp, for a USD300 million project to finance acquisitions and on-lending across Africa.
Under the terms of the agreement, OPIC will provide USD200 million in long-term debt and Atlas Mara will provide USD100 million of committed resources, to expand the operations of Atlas Mara's Southern African banking platform BancABC.
BancABC will scale up its SME loan portfolio, increase on-lending for financial inclusion products, and invest in information technology upgrades to quicken implementation of its new financial technology and mobile banking initiatives, Atlas Mara said.
In addition, USD130 million of OPIC's debt under the project will be dedicated towards financing strategic acquisitions to facilitate expansion of Atlas Mara's platform, footprint and channels.
"This partnership with OPIC is a significant milestone for Atlas Mara. It will enable us to further accelerate our growth strategy and to deliver on our stated goals of being an innovation-driven, scale player and contributing positively to the communities in which we operate, particularly with respect to increasing access to financial products and services to the under-banked. This project also serves as a powerful endorsement of our thesis regarding the prospects for sub-Saharan African financial services and Atlas Mara," Chief Executive John Vitalo said in a statement.
Shares in Atlas Mara closed at 6.00 pence on Thursday.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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