NMB puts plans on hold
LISTED financial institution, NMB Bank has put on hold plans to raise about $5 million mainly from pension funds to provide loans to small and medium enterprises after the bank managed to raise “more attractive” funds from other sources.NMB executive director (Treasury), Mr Felix Mangozho confirmed the development to the Herald Busines that the reason behind the move was that the bank managed to raise more attractive funds from other sources.
Mr Mangozho could, however, not specify the amount raised as well as the source of the money.
“Regarding the NMB SME’s Mortgage Backed Bond, we have not issued additional bonds since our last allotment,” said Mr Mangozho.
“This has, however, not prejudiced our initiative of supporting SMEs because the bank is still lending to this sector from the additional funds raised,” Mr Mangozho said.
Mr Mangozho said the bank would continue monitoring the trading environment and has lined up another tranche from investors for projects under consideration.
Mr Mangozho said the bank will approach investors to raise more funding so that the SME sector gets the required support to boost its economic development potential.