FMO has closed a six-year $35m syndicated loan facility with National Microfinance Bank (NMB), one of Tanzania’s leading banking institutions.

The loan was arranged by FMO, in syndication with Proparco ($15m) and Swedfund ($5m).

The funds will be used for on-lending to small-and-medium enterprises (SMEs) and corporate borrowers and will contribute to job creation in Tanzania.

Linda Broekhuizen, FMO’s CIO, said: “By supporting NMB Tanzania, we will contribute to providing credit to SMEs and corporates in Tanzania, supporting economic development.”

“NMB is a leading financial institution in Tanzania, which performs well and has a presence in most of its regions. The lenders are therefore very pleased to be part of this transaction,” she said.

NMB serves individuals, micro- and small enterprises as well as larger businesses in Tanzania.

With over 160 branches, NMB is represented in more than 95% of Tanzania's districts.

Listed on the Dar Es Salaam stock exchange, NMB has a strong financial record, based on years of strong and stable performance.

NMB’s largest shareholder is its strategic partner Rabobank (34.9%), which has been invested in NMB since 2005.

Ineke Bussemaker, NMB CEO, said this is the second time the bank has entered into a transaction with FMO, this time supported by Proparco and Swedfund.

“The loan will be used to accelerate our growth in SME and corporate business, with this time a special focus on agribusiness,” she said.

“This partnership reflects the international financial institutions’ confidence in NMB’s solid fundamentals -strong capital levels, well diversified loan portfolio and quality assets, and strong balance sheet with sustainable growth,” she added.