Mauritius Commercial Bank Secures $350 Million Syndicated Loan from Asia

Mauritius Commercial Bank Ltd. (MCB) has achieved a significant milestone by successfully closing its inaugural term loan, a two-tranche syndicated arrangement focused on Asia, valued at $350 million. Originally launched with an ambitious target of $300 million, the facility attracted overwhelming interest from lenders, resulting in double oversubscription from a total of 20 banks. This surge in interest allowed MCB to increase the loan amount to $350 million, emphasizing its robust credibility in the global financial market.

The proceeds from this facility will be utilized for general purposes by the bank, marking a historic transaction as MCB's first five-year syndicated loan that was exclusively offered to Asian lenders. This development highlights the trust that international creditors place in MCB's creditworthiness and strategic direction, reinforcing its position as a key player in the financial sector.

The syndication process involved comprehensive presentations and meetings in key financial hubs, including Hong Kong, Beijing, Shanghai, Taipei, and Seoul, where MCB experienced high engagement from lenders across these regions, including India. Notably, several banks participated in lending to MCB for the first time. By diversifying its lending base to include Asian financial institutions, MCB has also effectively reduced its cost of borrowing considerably.

Anbar Jowaheer, the head of financial institutions and syndication at MCB, stated, "This new facility confirms the success of MCB's financing program aimed at diversifying its funding sources through new markets. The significant participation in the five-year segment reflects international investors' confidence in MCB's strategy."

The CEO of MCB Ltd., Thierry Hebraud, commented, "Broadening our investor base to include Asian lenders is a pivotal step for MCB, particularly in light of the Mauritius-South Asia corridor's potential. This facility serves as a testament to the global investor community's faith in MCB's strategic initiatives, quality ratings, and growth prospects."

Key players in this transaction included Industrial and Commercial Bank of China Limited (London Branch), Mizuho Bank, Ltd., and Standard Chartered, which acted as bookrunners, initial mandated lead arrangers, and coordinators for the roadshow.

For more insights on MCB, you can visit MCB Group’s official website.

MCB's successful acquisition of this substantial loan not only strengthens its financial standing but also enhances its capability to undertake various initiatives and projects, further contributing to the economic landscape of Mauritius and beyond. With the evolving dynamics of global finance, MCB is poised to leverage this opportunity towards fostering growth and innovation in its operations.