Geza Ulole
JF-Expert Member
- Oct 31, 2009
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MeTL to Start Tanzanian Bank After Abandoning Barclays Plans
Tanzania’s MeTL Group, one of the country’s largest privately owned diversified manufacturing companies, plans to open a commercial banking unit before year-end after abandoning efforts to buy Barclays Africa’s unit in the east African country.
“I was more interested in buying Barclays Tanzania only, but now it seems like it’s not working very well,” the company’s President and Chief Executive Officer Mohammed Dewji said in an interview in the Rwandan capital, Kigali, on Tuesday. “We are going to open a bank, a new bank by the end of this year, we are finalizing the process, including licenses. We are hoping by the last quarter,” Dewji said.
MeTL imports palm oil for soaps and detergents and consumer goods ranging from sewing machines to bubblegum and exports agricultural products including sugar, fertilizer and cashew nuts, according to its website. The company operates in 11 African countries and employs 24,000 people in Tanzania.
MeTL will raise $250 million through debt and equity to finance its growth plans after raising a $200 million syndicated loan through South Africa’s FirstRand Ltd.’s investment-banking unit and Nedbank Group Ltd. in 2015. The company will invest $150 million in a new sugar-milling plant, $50 million in a garment making factory and $50 million in agri-processing.
“Our balance sheet is strong, we are in a good position to leverage our position and of course we will also put in equity,” Dewji said. “The $250 million is for long-term investment in projects.”
MeTL would not consider listing in the next decade because it still can raise the cash it needs for expansion, Dewji said.
“Why do people go public?” he said. “Its because of capital, but I haven’t exhausted my capital means.”
MeTL to Start Tanzanian Bank After Abandoning Barclays Plans
Tanzania’s MeTL Group, one of the country’s largest privately owned diversified manufacturing companies, plans to open a commercial banking unit before year-end after abandoning efforts to buy Barclays Africa’s unit in the east African country.
“I was more interested in buying Barclays Tanzania only, but now it seems like it’s not working very well,” the company’s President and Chief Executive Officer Mohammed Dewji said in an interview in the Rwandan capital, Kigali, on Tuesday. “We are going to open a bank, a new bank by the end of this year, we are finalizing the process, including licenses. We are hoping by the last quarter,” Dewji said.
MeTL imports palm oil for soaps and detergents and consumer goods ranging from sewing machines to bubblegum and exports agricultural products including sugar, fertilizer and cashew nuts, according to its website. The company operates in 11 African countries and employs 24,000 people in Tanzania.
MeTL will raise $250 million through debt and equity to finance its growth plans after raising a $200 million syndicated loan through South Africa’s FirstRand Ltd.’s investment-banking unit and Nedbank Group Ltd. in 2015. The company will invest $150 million in a new sugar-milling plant, $50 million in a garment making factory and $50 million in agri-processing.
“Our balance sheet is strong, we are in a good position to leverage our position and of course we will also put in equity,” Dewji said. “The $250 million is for long-term investment in projects.”
MeTL would not consider listing in the next decade because it still can raise the cash it needs for expansion, Dewji said.
“Why do people go public?” he said. “Its because of capital, but I haven’t exhausted my capital means.”
MeTL to Start Tanzanian Bank After Abandoning Barclays Plans
