2023-07-20 20:44:03
West African business circles have come one following the other to experience the strike force of the Mauritius Commercial Bank (MCB). First during the sale of the West African activities of Caterpillar, JA Delmas, to a consortium made up of an Ivorian investor and a group from the Middle East. And, barely a week ago, during the takeover by LBO of Nouvelle Mici Embaci in Côte d’Ivoire, valued according to our sources at around 100 million euros. To understand the philosophy of this very old institution born in Mauritius in 1838, we interviewed Ashvin Deena, Director of international corporate activities.
First, what is hidden behind the MCB acronym?
This is the Mauritius Commercial Bank group, founded 185 years ago, leader in financial banking activities in Mauritius, with subsidiaries in the Indian Ocean and representative offices in certain regional hubs. The MCB has a total balance sheet of 18 billion dollars, half of which is generated internationally, mainly in Africa. Internationally, we develop tailored corporate solutions and support multinationals, local and regional companies, and private equity funds by drawing on the possibilities offered by the Mauritian financial centre. We are one of the few financial institutions in sub-Saharan Africa to hold an investment grade rating, namely Baa3 from Moody’s. MCB has held an investment grade rating for several years.
Have you just completed the takeover of Nouvelle Mici Embaci in Côte d’Ivoire?
Indeed, it is a sophisticated LBO operation consisting of the takeover of the Nouvelle Mici Embaci activity, which was owned by the Carré d’Or group in Côte d’Ivoire, by a consortium led by AFIG and Norfund. MCB was the debt arranger with its local partner, Bridge Bank.
The transaction included an equity portion and a debt portion over an appropriate time horizon. The amounts invested cover the financing of the acquisition and the goodwill.
It is rather rare to see LBOs in the region? How did you structure it?
Yes you are right. This is one of the first LBOs in West Africa. We have within MCB, a team well equipped in this kind of operations. Regarding this transaction, it was necessary to reconcile the debt and the capital so that the duration of the debt reflects the investment horizon of the new shareholders. The other characteristic of the operation was its development plan rooted in sustainable development and integrating our objectives in terms of respect for the environment.
What is your position in the African banking landscape?
We mainly support banks and companies. Although being the largest financial institution in Mauritius, with a traditional presence in Madagascar, the Seychelles and the Maldives, we have opted to do corporate banking dedicated to companies engaged in cross-border operations and their growth phases in general. We do not operate with local banking licenses, country by country, but rather as an extra by providing foreign currencies (euros and dollars) in perfect harmony with our local partners, the Bridge Bank in this case in the case of this last operation.
Aren’t you planning to apply for a banking license in West Africa?
Our current model fully satisfies us. We are an arranger and major lessor in West and East Africa with representative offices and synergy with local banks. We are active in the oil and gas segment as well as the renewable energy segment, among others, and provide rapid tailor-made solutions, while capitalizing on our various offices including those in Dubai, Nairobi, Johannesburg and Paris.
Did you mention Sustainable Development? Are you one of the institutions committed to no longer funding fossil fuels in Africa to force the transition?
On the contrary, we believe that Africa needs to develop its natural resources to achieve a harmonious energy transition. It is not enough to press a button and trigger the transition. Our objective is to support our continent through of course a commitment to sustainable development by helping to finance this transition.
Are you ranked 14th in the Financial Afrik ranking of 30 African banks by regional impact? Can do better ?
For us it is not a question of classification. What guides us is being able to support our customers. Our model is not to set up in all countries. It is rather a niche model and an ambition to generate the maximum impact in our specialty. MCB’s philosophy is to work in complementarity with local banks. The international financial center of Mauritius makes it possible to support this type of transaction. The financial center of Mauritius does not have the only comparative advantage of taxation but above all an ecosystem, comprising investment funds and quality service providers, promoting sustainable investment in Africa.
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