Maravi

ZNCB seeks partner to procure crude oil

ZNCB seeks partner to procure crude oil
By Fridah Zinyama
Friday July 04, 2008 [04:00]

ZAMBIA National Commercial Bank (ZNCB) managing director Mark Weissing has said the bank will have to partner with other banks in financing of the crude oil which it is currently negotiating with the government. The bank will have to source for additional funds from the initial US$ 220 million to about US$ 300- US$ 400 million due to the constantly fluctuating oil prices on the international market.

Crude oil is currently trading at about US$ 144 per barrel, with high chances of more fluctuations before the negotiations between the bank and the government could be concluded.

During a media breakfast yesterday, Weissing said the deal that the bank had managed to win was quite substantial and would therefore require the bank to partner with Rabobank its parent company, and other banks in order to successfully carry out the deal.

“We have already been involved in the procuring process of crude oil before and we are confident that this deal will be properly handled,” he said.

Weissing said it would be necessary for the bank to form a syndicate that would ensure that they managed to finance the procurement of the crude oil that the government had managed to source from Kuwait.

And Weissing added that the bank had managed to source for more finances meant to increase the bank’s financial portfolio.

“We have managed to get about US$ 35 million from a Netherland financial company that is meant to improve the banks liquidity,” he said. “Of this amount US$ 10 million will be meant for substantial debts whilst the other will be meant for senior debts.”

Weissing added that the bank had put a lot of measures in place in order to ensure recovery of loans from its creditors.

He further added that the Initial Public Offer (IPO) would be expected to be complete in the next three months.

“We will finish working on the necessary measures to ensure that the IPO is completed by September,” he said.

Labels: FUEL, INFLATION, ZNCB

posted by MrK @ 4:25 AM