Mauritius Commercial Bank (MCB) Limited has structured and delivered a $51 million medium-term loan facility to Tolaram, partly refinancing an existing short-term loan linked to the multinational group’s acquisition of Guinness Nigeria Plc.
The financing will allow Singapore-headquartered Tolaram to replace part of its short-term funding with longer-term financing better aligned with its growth plans, the bank said in a statement on Thursday.
MCB said the transaction also included a tailored covenant package designed to give Tolaram greater financial flexibility while supporting its long-term growth.
The deal marks a major transaction along the Singapore-Nigeria business corridor and forms part of MCB’s strategy to facilitate trade, investment and capital flows between Asia and Africa.
“Asian groups are building real industrial capacity in Africa, and they need a bank that understands both ends of the route,” said Thierry Hebraud, Chief Executive Officer of Mauritius Commercial Bank.
“Tolaram has been present in Nigeria for decades, expanding rapidly to other parts of Africa and the Middle East. And it is a market we know well. We intend to keep on developing the Singapore to Nigeria corridor.”
Tolaram began its African operations in Nigeria, where it manufactures and distributes consumer products in partnership with international corporations.
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The group also owns and operates the Lagos Free Zone, Nigeria’s first privately held free trade zone, which is integrated with the Lekki Deep Sea Port.
MCB said Nigeria remains one of its priority markets in Africa. The bank maintains a representative office in Lagos and also has offices in Johannesburg, Nairobi, Paris and Dubai.
Rahul Somani, Group Chief Financial Officer of Tolaram, said MCB played an important role in refinancing the company’s short-term loan and restructuring it into longer-term financing.
“MCB played an important role in refinancing short term loan and structuring it to the long-term tenure. Tolaram is highly impressed with the professional and pragmatic approach and with the solution-finding attitude of the MCB team.
“The team helped to conclude a refinancing deal (partly) in a short span of time and set a firm tone for the new relationship – not only between MCB and Tolaram but also between the Africa – Asia corridor.
“Both sides were keen to ensit wasit’s a win–win transaction and long-term commitment, which guided the solution-finding attitude to come out with tailor-made covenants ensuring that any risks are mitigated. Marking the beginning of a long relationship.”
MCB provides trade finance, foreign exchange and financial markets solutions, cash management, lending and advisory services to clients seeking opportunities across Africa and Asia.
Founded in 1838, Mauritius Commercial Bank is a subsidiary of MCB Group Limited, a financial services conglomerate listed on the Stock Exchange of Mauritius with an asset base of more than $20 billion.
Tolaram, founded in 1948, is a family-owned multinational headquartered in Singapore, with interests in consumer packaged goods, financial technology, infrastructure and industrial development across Africa, the Middle East, Asia and Europe.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X