Maputo — The entry of a major Portuguese bank, the Banco Espirito Santo (BES), as a shareholder in one of Mozambique's newest banks, Moza Banco, means that "Moza Banco will cease to be small bank", declared its chairperson, Prakash Ratilal, on Wednesday.

According to a report in Thursday's issue of the independent newsheet "Mediafax", Ratilal said that the entry of a bank with a high international reputation would bring positive results for Moza Banco, even without obliging it to leave its current market niches of corporate banking and private banking.

Moza Bank's corporate banking services include credit, trade finance, international transfers and payments and foreign exchange arrangements for small, medium and large companies. Private banking, Ratilal said, aims to meet the needs of high income clients, and help them manage their assets.

The entry of the BES as a shareholder might help Moza Banco offer new services, he added, and speed up the expansion of the bank across the country. The existing BES network could also be used to internationalise Moza Banco.

Currently Moza Banco has 54 million US dollars in assets and only two branches, both in Maputo. The priorities for the bank's expansion are Nampula, Nacala, Tete, Beira and Matola.

The deal was agreed in principle in Lisbon on Monday, and should be finalized by December. BES is purchasing 25.1 per cent of the Moza Banco shares. Although Ratilal would not confirm the sale price, the figure cited in the Mozambican media, 35 million dollars, has not been denied.

As a result of the deal, Mozambique Capitais (a group of 218 Mozambican investors, both businesses and individuals) remains the largest shareholder with 50.4 per cent of the bank. BES holds 25.1 per cent, and Geocapital, the holding company of the Macau billionaire Stanley Ho, owns the remaining 24.5 per cent. Most of the BES hholding is being purchased from Geocapital.

"BES is a solid bank, with professional management and with financial products that interest us", said Ratilal. "The first result will be an aggressive plan of expansion, and the fact is that Moza Banco will cease to be a small bank".