The African Development Bank (AfDB) has extended a US$120mn multi-sector line of credit and US$30mn of subordinated debt to the Mauritius Commercial Bank (MC Bank).

The Mauritius bank intends to use the line of credit for lending to different sectors, such as manufacturing, infrastructure and agribusiness, which have been suffering from a lack of liquidity.

MC Bank has previously funded developments in a range of sectors including tourism, construction, textiles, seafood and information and communication technology, a spokesperson for MC Bank tells GTR.

The bank intends to continue investment in these sectors as well looking for new and developing industries in Mauritius, she adds.

MC Bank will focus on small and medium-sized businesses in countries where it has local presence – chiefly Mauritius, Madagascar, Mozambique and Seychelles – as well as in other African countries, Mohamed Kalif, manager of the financial institutions division of the AfDB tells GTR.

The spokesperson for MC Bank adds that “it will also enhance MCB’s capacity to finance and partake in long-term project finance transactions”, as well as “helping to fund the group’s business development ambitions and strengthen its capital base in the wake of its plan for continued growth”.

As well as the line of credit, the Mauritian bank will be using the subordinated debt to further develop its trade finance activities in Africa, Kalif outlines.

The focus will be principally in eastern and southern Africa.

“The financing should also contribute to Africa’s green growth through support to renewable energy and energy efficiency projects,” Kalif adds.

The AfDB was the only lender in this transaction.