- The guarantees are valid for as long as 15 years
- Absa is the first African banking group to reach an agreement with Miga
Absa Group Limited (AGL), Africa’s largest diversified financial services group, has said it has concluded a $497m agreement with the Multilateral Investment Guarantee Agency (MIGA) to boost lending in Sub-Saharan Africa.
Absa said it was the first African banking group to enter into such an agreement with Miga, a member of the World Bank Group.
“The guarantees will help to protect Absa against risks related to the mandatory capital reserves that Absa and other banks are required to hold with central banks. They will free up financial capacity, enabling Absa’s subsidiaries to provide additional lending and generate more revenue. The subsidiaries will increase sustainable financing for corporates and small and medium-sized businesses, as well as projects with co-climate benefits,” Absa said in a statement.
The guarantees apply to subsidiaries in Ghana, Kenya, Mauritius, Mozambique, Seychelles, Uganda and Zambia.
Absa is listed on the Johannesburg Stock Exchange. It owns majority stakes in banks in Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, South Africa (Absa Bank), Tanzania (Barclays Bank Tanzania and National Bank of Commerce), Uganda and Zambia.