South African lender Rand Merchant Bank (RMB) has led the arrangement of a US$340mn syndicated loan for Tanzanian conglomerate MeTL.

The loan will enable MeTL to expand its beverage business from its current Dar es Salaam base to the wider Tanzanian and East African market, and also finance the acquisition, import and storage of other commodities.

RMB serves as the financial adviser, lead arranger, and facility and security agent for the loan. The other syndicated lenders are AfrAsia, Investec, Mauritius Commercial Bank, Nedbank and Rabobank.

The loan consists of a US$170mn commodity finance portion backed by warehoused commodities and a US$170mn working capital portion, which will also be used to finance commodities not in approved warehouses and other commodity-related expenses, an RMB spokesperson tells GTR.

The loan finances 12 commodities for MeTL including edible oils, cashew nuts, fertiliser and petroleum products.

This is the 17th year in a row that RMB has renewed its commodity finance offering to MeTL, beginning with a US$10mn facility in 2007. The loan has grown each year it has been renewed.

Ben Bechet, RMB’s head of trade and working capital structured solutions, says MeTL “has reached a crucial turning point and, after successfully establishing itself as a household name in Tanzania, is ready to focus on regional growth.

“With an impressive 70% market share of the carbonated drinks market in Tanzania, a natural use for the increased facility size will be driving its highly successful beverage business across East Africa.”

MeTL is Tanzania’s largest domestically owned conglomerate, producing and trading agricultural, industrial and consumer goods.  It is active in 11 African countries and contributes approximately 5% of Tanzania’s GDP.