The Hague/Nairobi, 28 April 2020 – Dutch entrepreneurial development bank (FMO) and the Eastern and Southern African Trade and Development Bank (TDB) today signed a 12-year export finance loan program of EUR 40 million destined for financing the acquisition of Dutch sourced capital goods. The aim of this program is to enable African enterprises to procure Dutch goods and services at attractive funding conditions.
The EUR 40 million program, in collaboration with Atradius DSB (the Dutch Export Credit Agency), will be used to facilitate commercial activities between Dutch exporters and local importing enterprises active in the region TDB serves. The program aims to support the economic and social development of the region, especially in sectors focusing on medium-sized growth companies.
This is the second agreement to be signed between FMO and TDB. The first was a 9-year facility of USD 50 million signed in 2009 which was geared mainly at supporting SMEs in the region.
“We are delighted to further our cooperation with FMO” says Admassu Tadesse, TDB President and Chief Executive. “Via this new facility, we look forward to continue supporting high impact business initiatives and the enterprises which drive them in our region. Since the launch of its ECA financing services in 2016, TDB has so far executed more than half a billion US-dollars of ECA-backed credit lines thanks to its rapidly expanding relations with funding partners such as FMO.”
“We are pleased to announce our cooperation with TDB in facilitating investments in Africa. This program allows us to provide long-term capital to projects of mutual interest which support innovation and job generation”, said Janet Nieboer Director, NL Business at FMO. “Furthermore, the program stimulates export projects that include service and equipment deliveries from the Netherlands”, added Nieboer.
FMO is the Dutch entrepreneurial development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a close to 50-year proven track-record of empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With a committed portfolio of EUR 9.7 billion spanning over 85 countries, FMO is one of the larger bilateral private sector developments banks globally.
For more information: please visit: www.fmo.nl
Established in 1985, the Eastern and Southern African Trade and Development Bank (TDB), formerly the PTA Bank, is a fast-growing multilateral, treaty-based, and investment-grade development finance institution, with assets of US$ 6.7 billion. The Bank’s mandate is to finance and foster trade, regional economic integration and sustainable development through trade finance and project & infrastructure finance.
For more information: please visit: www.tdbgroup.org
Senior Corporate Communications Officer
Anne-Marie Iskandar, Senior Communications Officer
Corporate Affairs and Investor Relations
Trade and Development Bank