FBC renames StanChart to FBC Crown Bank, sees growth in market share

HARARE – FBC Holdings is set to acquire US$50 million in credit lines in this second half of the year, as the business tries to satisfy the appetite of its customers mainly exporters.

The money will be sourced from continental providers of funding who for long have been supporting the local financial sector despite the status of the country’s high risk profile.

Over the years local banks have been struggling to access offshore funding as a result of the high risk profile of the country. Those who have accessed, did so at a premium.

Speaking to FinX on the sidelines of the AGM yesterday, CEO Trynos Kufazvinei said the credit lines will be coming from the Afreximbank and Trade Investment bank and Shelter Afrique who are receptive to the country’s high risk profile.

“In terms of lines we are looking to raise about US$50 million through continental providers of credit lines who are more receptive to Zim as a country risk. So as a result of that we can find support for local business institutions from Afreximbank Shelter Afrique and TDB. We have made a lot of progress with some of them. We are expecting these lines in the second half of this year” he said.

The bank already has over US$100 million running credit lines through the same continental providers of capital so the new lines will be augmenting what the bank already has.

To grow shareholder value, FBC, which has over 5ha of land said they have already engaged its shareholders like NSSA, the government pension fund and FBC pension fund to develop its idle land through a REIT private placement. In the agreement with the shareholders they are looking to develop properties which they will co-own.

In this regard, without being specific, Kufazvinei told FinX they are looking to raise north of US$20 million. The CEO added that they might also follow the Tigere Model that is raising the money through listing on the local stock exchanges.

Meanwhile, recently the company completed the acquisition of Standard Chartered. Kufazvinei said that since the acquisition, the bank had gained market share and customer base by about 2-3%. The bank will soon be renamed to FBC Crown Bank will focus on wholesale banking, high value clients and blue chip companies while FBC Bank will continue with the normal business of the company. Mubaiwa Mubaiwa is the managing director of the renamed bank.

In the five months to May 2024 FBC reported a strong financial position with assets above liabilities and working capital reported to be also adequate for the next 12 months.

At the AGM, shareholders approved the continuation of the company’s share buy backs scheme following a recommendation from the board who believes the company are still undervalued.

To date the company has already bought back 8.1% of its issued shares for slightly above ZWG 1.6 million and they are targeting to acquire 10% of their issued shares. FBC shares are currently valued at ZWG1.95 per share.finx