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EIB, FCB sign €25 million facility

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First Capital Bank on Friday signed a €25 million facility with the European Investment Bank (EIB) which is provided to smallholders and private companies involved in agriculture across Malawi through the Kutukula Ulimi M’Malawi (Kulima) programme.

The facility includes a €12.5 million loan from EIB and a €12.5 million contribution from FCB.

EIB Vice President Thomas Östros said the bank remains committed to boosting agriculture in Malawi.

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FCB Chief Executive Officer Spiro Georgoupolos said the new partnership will unlock agricultural investment, create employment, and unlock economic growth in Malawi in the years ahead.

Georgoupolos said the new financing will provide longer-term loans than normally available in both local and foreign currency.

He said the scheme will be complemented by a European Union support programme including technical assistance, to support agricultural companies across Malawi.

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The FCB chief observed that access to finance by smallholders and agricultural companies will be further enhanced by a risk-sharing facility backed by the European Union.

“The Seven-year €12.5 million EIB loan to First Capital Bank in combination with the risk-sharing facility that was arranged with the strong support of the EU Delegation will allow €25 million of new financing to be provided to small holders and private companies involved in agriculture across Malawi.

“Under the initiative, First Capital Bank will provide financing in Malawian Kwacha, USD and EUR to eligible clients that will unlock investment that strengthens the overall competitiveness of Malawian agriculture.

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