The Head of Corporate & Institutional Banking for Mauritius Commercial Bank (MCB), Thierry Hebraud, disclosed the Bank’s plans to open an office in Africa’s largest economy, Nigeria.
The disclosure was made at the ongoing Africa CEO Forum holding in Abidjan, Côte d’Ivoire, where he intimated Reuters that the Bank’s expansion plan was delayed by the COVID-19 pandemic. The company is however, now moving forward with the process and is expected to obtain an approval from the Central Bank of Nigeria in a few months.
MCB previously operated in Nigeria directly from its Port Louis headquarters, carrying out a number of top corporate deals, including provision of capital for Nigerian companies seeking to acquire assets put on sale by foreign companies divesting from the country.
The Bank also has significant exposure in the Nigerian oil and gas sector to the tune of $850 million and intends to continue investing in the sector by focusing on ‘structured finance’. It also hopes to take advantage of opportunities in the renewable energy and mining sectors.
Mr Hebraud was quoted to have said that, “Today, more than 50% of our balance sheet is outside Mauritius, and the major part is in Africa. I believe within the next couple of months, we will be operating the new representative office in Nigeria… We believe we’ll continue to grow in the oil and gas sector, but at a slower pace. We’ll definitely grow in the energy and infrastructure”
MCB’s long-term plan includes expansion to Ghana where it currently has $300 million worth of loan exposure. The bank also has operations in Kenya and South Africa, and is now seeking an Africa-wide expansion.
MCB has an asset size of $14.4 billion (Rs 641 billion) and an investment grade rating by Moody’s. With a long-term deposit rating of Baa3, the commercial bank currently one of the very few financial institutions in Sub-Saharan Africa with such rating.
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