Agribank Raises US$30 Million IDCSA Line of Credit
The Bank has secured an IDCSA line of Credit to the tune of US$30 million for support to the agriculture sector. The IDCSA Board Investment Committee met this morning and approved the Facility, which is favorably priced at Libor +8.9%.
The potential beneficiaries of the facility include:
- a.Fertilizer and Chemicals companies
- b.Livestock and Dairy Producers
- c.Soya and Oil seed Producers
- d.Pharmaceuticals; and
- e.Water treatment chemicals,
- f.amongst others
Agro bills US$40 million
Agribank in conjunction with FBC Bank is in the market to raise US$40 million through Agro bills, to support the agriculture sector for the 2018/19 cropping season, following the granting of all the regulatory approvals. The Banks have jointly raised US$20 million each year since 2013, with a cumulative total of US$65 million. Over the years, the Agro bills have been oversubscribed and the two Banks have consistently paid on maturity
The Banks have deliberately agreed to expand their agricultural interventions in support of Government’s efforts to expand agricultural production and productivity by doubling the Agro bills funding to US$40 million
Update on Bringing A Strategic Partner To Assist on Agribank Capitalization
Significant progress has been made with regards to preparing the groundwork on bringing in a strategic partner for the Bank. As is required, a Technical Committee on Agribank has been established by Government whose main purpose is to oversee and manage the bringing in of a strategic partner for Agribank and to ensure that all the necessary approvals are granted
The Bank has already sent out through the media an invitation for expression of interest for the provision of Transactional Advisory services.