MyBucks S.A.: MyBucks obtains USD 5 million loan facility for agricultural finance
MyBucks obtains USD 5 million loan facility for agricultural finance
- Facility Agreement with the Africa Agriculture and Trade Investment Fund targeting the agricultural financing activity of the MyBucks subsidiaries in Mozambique and Uganda
Luxembourg, 3 July 2017 - Frankfurt-listed FinTech, MyBucks S.A., today announced that it has signed a term loan facility agreement with the Africa Agriculture and Trade Investment Fund ("AATIF"), initiated by KfW on behalf of the German Federal Ministry for Economic Corporation and Development (BMZ) and currently managed by Deutsche Bank, to finance agricultural value chain activities in Mozambique and Uganda.
The USD 5m facility will be used to increase MyBuck's agricultural loan portfolio in these two markets. The agreement sets a new milestone in MyBucks' strategy to enhance financial inclusion and to promote sustainable development in Africa. MyBucks will leverage its technology to finance the agricultural value chain activities in two countries where less than a third of the population have access to financial services at present. Around 70% and 80% of the population in Mozambique and Uganda, respectively, live in rural areas. MyBucks is currently in the process of launching its digital banking platform in Mozambique and Uganda, which is expected to be fully operational by Q3 2017. MyBucks wants to break the logistical barriers that keep a vast majority of the population in these two countries from accessing the financial services sector.
"Through our virtual banking offering, we can serve a significantly larger population and diversify our product offering. AATIF's support further signifies the impact MyBucks' digital strategy is making in these markets in driving financial inclusion. Moreover, this funding line allows Mybucks to reduce its cost of funding and also supports Mybucks diversifying its funding base." - says MyBucks Deputy-CEO, Tim Nuy. We expect Mozambique and Uganda to be key contributors to the MyBucks performance in 2018, and this facility provides a great platform for our strategic initiatives".
The agreement between MyBucks and AATIF also includes the possibility of requesting an additional USD 5 million incremental facility. Finally, AATIF will provide technical assistance to MyBucks to help the company improve its capacity in the agricultural lending sector, with measures ranging from training to support in establishing proper social and environmental safeguards.
The Chairman of AATIF, Thomas Duve added that "MyBucks is in the unique position to increase access to finance for smallholder farmers in Uganda and Mozambique, a decisive factor in trying to provide additional employment and income to farmers, entrepreneurs and labourers. MyBucks' technological platform allows it to overcome logistical challenges in the regions and therewith provide more clients in the most rural areas with access to financial services in a timely and efficient manner. Especially in the agricultural sector, timely access to financial services is crucial and logistical hurdles for traditional financial service providers including microfinance institutions are significant. While innovation and improvements to the existing lending activities of local subsidiaries of Mybucks requires time, we do expect Mybucks to use its unique position to the benefit of existing and new customers in the rural areas of Uganda and Mozambique. We expect this partnership to increase financial inclusion of smallholder farmers and therewith help stimulate agricultural output, production levels and add value across the entire chain of agricultural activities. It is also in the best interest of AATIF to provide technical assistance to Mybucks supporting this new Partner Institution of AATIF to contribute to market improvements acting as responsible lender. "
MyBucks S.A. (WKN: A2AJLT, ISIN: LU1404975507, Ticker Symbol: MBC:GR) is a FinTech company based in Luxembourg that delivers seamless financial services through technology. Through its brands GetBucks, GetSure and Opportunity Bank the company offers impact loans, unsecured consumer loans, banking solutions as well as insurance products to customers. MyBucks has experienced exponential growth since its inception in 2011 and today has operations in twelve African and two European countries as well as in Australia. MyBucks aims to ensure that its product offering is accessible, simple and trustworthy, in comparison to traditional, non-technological methods, ultimately working towards enhancing the benefits to the customer. The MyBucks' product offering enables customers to manage their financial affairs easily and conveniently.
AATIF is an innovative public-private partnership dedicated to uplifting Africa's agricultural potential for the benefit of the poor. The Fund aims at improving food security and providing additional employment and income to farmers, entrepreneurs and labourers alike by investing patiently and responsibly in efficient local value chains.
Discover more at
10.07.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English
Company: MyBucks S.A. 14, rue Edward Steichen L-2540 Luxembourg
Grand Duchy of Luxembourg Phone: +352 2088 2123 Fax: +27 86 537 2010 E-mail: email@example.com Internet: www.mybucks.com ISIN: LU1404975507 WKN: A2AJLT Listed: Open Market (Scale) in Frankfurt End of News DGAP News Service