Mauritius Commercial Bank (MCB) has disclosed plans to open an office in Africas largest economy, Nigeria.
MCB’s Head of Corporate & Institutional Banking, Thierry Hebraud, disclosed this on the sidelines of the ongoing Africa CEO Forum in Abidjan, Côte d’Ivoire. He told Reuters that the COVID-19 pandemic had delayed the expansion plan. But the company is now moving forward with the process and is expected to obtain an approval from the Central Bank of Nigeria in a few months.
The bank already has significant exposure in the Nigerian oil and gas sector to the tune of $850 million. And while it intends to continue investing in the sector by focusing on ‘structured finance’, it would also be positioning itself to take advantage of immense opportunities in the renewable energy and mining sectors.
The long-term plan entails further expansion to Ghana where the Mauritian bank currently has $300 million worth of loan exposure. The bank also has operations in Kenya and South Africa, and is now seeking an Africa-wide expansion.
Today, more than 50% of our balance sheet is outside Mauritius, and the major part is in Africa. I believe within the next couple of months, we will be operating the new representative office in Nigeria… We believe we’ll continue to grow in the oil and gas sector, but at a slower pace. We’ll definitely grow in the energy and infrastructure,” Mr Hebraud was quoted to have said.
Do note that prior to this time, MCB operated in Nigeria directly from its Port Louis headquarters. It has carried out a number of top corporate deals in the West African country, most of which entailed providing capital for Nigerian companies seeking to acquire assets put on sale by foreign companies divesting from the country.
Africa show that MCB has an asset size of $14.4 billion (Rs 641 billion). It also has an investment grade rating by Moody’s. Specifically, with a long-term deposit rating of Baa3, it is currently one of the very few financial institutions in Sub-Saharan Africa rated as such.
