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    • The Eastern and Southern African Trade and Development Bank, known more commonly as TDB, and previously PTA Bank, is a specialized African regional financial institution established in 1985 that provides short, medium and long term financing, across a wide set of sectors, both private and public sector clients, on sustainable and commercial principles.

  • WHAT WE DO
    • Trade finance
    • Projects infrastructure finance
    • The Bank’s mission is to finance and foster trade, socio-economic development and regional economic integration through trade and development finance, funds management as well as advisory and agency services.

  • INVESTOR INFO
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    • Highlights
    • TDB is a treaty-based, specialist regional multilateral development bank (MDB) that is investment grade, profitable and dividend paying. It operates on both market and sustainability principles, and does not offer concessional finance, as it is not a donor funded institution. Established by the Common Market for Eastern and Southern Africa (COMESA), it is owned by 23 sovereigns, mainly from eastern and southern Africa, both COMESA and non-COMESA sovereigns, as well as non-African sovereigns and institutional shareholders such as international financial institutions, pension funds and insurance companies

  • OUR INTERVENTIONS
    • Our Interventions
    • By Sector
    • We provide various types of credit and guarantees, such as letters of credit, trade loans, and term loans, including agency backed loans, in various development sectors, with preference, where feasible, for transactions that have high levels of development impact and positive cross-border effects, including transactions that enhance the connectivity and complementarity of Member States. Equity financing is considered very selectively on a case by base. Other services provided include funds/asset management, advisory and agency services.

  • OPPORTUNITIES
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    • The Bank is first and foremost a merit-based employer, where the paramount consideration in recruitment is integrity, efficiency and competence, both technical and international experience. The Bank, statutorily, seeks diversity in its recruitment, across Member States, gender and age. Nationals and the diaspora of Member States and Member Countries are eligible to apply to vacancies, provided they are under the age of 62. As a rule, the President and majority of the Bank shall always be nationals of Member States.

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Lines of Credit

TDB has long standing relationships with a diverse group of lenders that includes commercial banks, development finance institutions, export credit agencies amongst others through which it accesses short and long term funds.

Short Term Facilities

As at December 2016 , the Bank had access to USD 2,369,322,431 of short term funds [USD 2,179,240,539 (2015)].The short-term facilities generally have tenors of up to 3 years and support Trade Finance activities. TDB’s short term lenders include the following international commercial banks, corporates and private sector development agencies.

Standard Chartered Bank of London, Cargill, Mashreq Bank, Mauritius Commercial Bank, Commerzbank, Rand Merchant Bank, AFREXIM Bank, ING Bank, Standard Bank South Africa, Commercial Bank of Africa, FBN Bank London, BNP Paribas Group, HSBC Bank, Citibank Nairobi, British Arab Commercial Bank, Deutsche Bank, Sumitomo Mitsui Banking  Corporation, Kenya Commercial Bank, UBA, New York, SociétéGenerale, NIC Bank, BCV-BanqueCantonaleVaudoise, KBC Bank, BMCE Bank, Fim Bank, Natixis, CFC Stanbic Bank, African Finance Corporation, Byblos Bank, Banque BIA France, BHF Bank, International Islamic Trade Finance Corporation, OPEC Fund for  International development, Ghana International Bank, Banque de  Commerce et de Placement, DZ Bank, Louis Dreyfus Commodities, KFW Ipex, and the State Bank of Mauritius

Long Term Facilities

As at December 2016, the Bank had access to USD 794,214,640  [USD 874,104,553 (2015)] of long term funds to support project and  infrastructure financing. Long term facilities are generally secured through development finance institutions and export credit agencies.

TDBs lenders include the following institutions: African Development Bank, African Agriculture and Trade Investment Fund, China Development Bank, KBC Bank of Belgium, EXIM Bank of India, FMO, CeskoslovenskaObchodni Banka AS, BHF Bank, Development Bank of Southern Africa; OPEC fund for International Development, Overseas Private Investment Corporation, Private Export Funding Corporation, European Investment Bank, CDC Group and KfW

Syndicated loan Facilities

USD 400 MILLION DUAL TRANCHE SYNDICATED TERM LOAN FACILITY

On 5th October 2016 –TDB successfully raised a USD 400 million Dual Tranche Syndicated Term Loan Facility. The Facility initially launched at USD 320.5 million and after a successful syndication process was upsized and closed with 18 lenders. The Bank mandated Citi, Industrial and Commercial Bank of China Limited London Branch, Mashreqbank psc, Mizuho Bank, Ltd., Standard Chartered Bank, Sumitomo Mitsui Banking Corporation Europe Limited, and The Bank of Tokyo-Mitsubishi UFJ, Ltd., (collectively the “Bookrunners and Initial Mandated Lead Arrangers” or the “BIMLAs”) with the cooperation of Commerzbank Aktiengesellschaft, Filiale Luxemburg as Initial Mandated Lead Arranger (the “IMLA”) to arrange the Facility.

Proceeds of the Facility was used towards (i) repaying a short term facility which refinanced the Borrower’s 2014 USD 320,500,000 Syndicated Term Loan and (ii) for trade financing, project and infrastructure financing and for general corporate purposes. The Facility has a 2- and a 3-year bullet structure. The margin on the Facility is 2.30% per annum under the 2-year Tranche and 2.50% per annum under the 3-year Tranche (subject to adjustment according to TDB’s credit rating).

This transaction has been voted Best Syndicated Loan by an African DFI by EMEA Finance.

USD 340 MILLION ASIA FOCUS TERM LOAN FACILITY

In June 2015, TDB successfully raised a USD 340 million Asia Focused Syndicated facility. Standard Chartered Bank acted as sole Initial Mandated Lead Arranger and Bookrunner. This is a landmark transaction in Sub Saharan Africa as the first syndicated loan arranged for an African DFI specifically targeted to Chinese and Taiwanese investors. The transaction closed significantly oversubscribed, originally launched at “up to US$ 250mn” and closed with commitments of US$ 340 mn. The facility has a 3-year bullet repayment with a margin of Libor plus 2.50%. The loan will be used for TDB Bank’s general corporate purposes

Capital Markets Activity

In issuing local currency bonds, the Bank’s motivation has been to broaden its resource base, deepen the sub-region’s developing financial markets and assist its clientele in mitigating foreign currency risks by funding loans in local currency.

The proceeds of the bonds and notes are invested in the respective countries of issuance. All the bonds so far issued have been listed on their respective Stock Exchanges thereby enhancing their liquidity attributes.

The Bank has successfully issued local currency bonds in Tanzania, Kenya and Uganda,TDB has a successful track record of issuing local currency bonds within Africa and other international markets. For investment opportunities in these bonds, contact the respective placing agents using the information below and also table below provides highlights of TDB Bank’s capital market activities.

TDB is a regular issuer in local and global capital markets. Its previous issuances date to 2010 and 2013 in the Eurobond market. In March 2017, the Bank issued a benchmark sized transaction of USD500m that was admitted to the JP Morgan Index. The transaction was well received by the market by being oversubscribed at 4.4 times that is USD2.2 billion, at the lowest ever price in TDB’s history. The price contraction was at 5.375%, against 6.375% for its 2013 issuance. The order book for TDB’s bond is of high quality highlighting not only its credit profile but also reflective of the Bank’s strides in its funding diversification strategy. The order book was well represented across geographies of Europe, Asia, and Middle East, as well as by investor types of Private Banks, and Fund managers mostly.

Alongside the issuance of the Eurobond, TDB also embarked on a Liability Management Exercise through a Cash Tender for its Eurobond maturing December 2018. This exercise was well received since the target acceptance amount by TDB was USD100m and the market tendered USD180m. It is worth noting that the success of this issuance and Cash Tender offer comes within a context of rising interest rates, and volatility in the markets stemming from geopolitical risks mainly. Building on the momentum of the issuance, and on basis of reverse enquiries received, TDB sought to Tap the market again in April 2017 to capture the available liquidity within the then market context. With a target amount USD150m, the market again responded with an oversubscription to USD300m circa. TDB closed the transaction at USD200m on consolidated basis with its March Issuance bringing its total Issuance size to USD700m, at an average coupon of 5.41% p.a.

The Bank’s debut local currency bond in Kenya was issued in July 2005 and fully repaid in July 2012.

The Bank’s second local currency bond in Kenya had the following features:

 

Issue date 30th October 2007
Repayment date 31st October 2014
Instrument Floating rate bonds denominated in Kenya Shillings
Amount Kshs 1,000,000,000
Denomination Kshs 1,000,000 and integral multiples of Kshs 1,000,000
Tenor Seven (7) years
Interest rate 182-day Government of Kenya Treasury Bill plus 1% p.a.
Repayment Ten (10) equal semi-annual principal instalments
Early Redemption Allowed on giving atleast 30 days notice
Arranger Stanbic Bank and Stanbic Investment Management Services Limited
Fiscal Agent and register NIC Bank Ltd +254 20 2888405
Placing Agent Suntra Investment Bank Ltd +254 20 2870107/8

The first Tanzania Shillings 15 billion bond was fully repaid in August 2010.

The Bank’s second local currency bond in Tanzania has the following features:

 

Issue date May 2015
Repayment date May 2020
Instrument Floating rate and Fixed rate bond denominated in TZS Shillings
Amount TZS 32,600,000,000
Tenor Seven (5) years
Interest rate FloatingInterest rate fixed 182-day Government of Tanzania Treasury Bill plus 2% p.a.15.75% p.a
Arranger CfC Stanbic Bank Limited and Stanbic Bank Tanzania Limited
Fiscal Agent and register Stanbic Bank Tanzania Limited
Placing Agent TIB Rasilimali Limited

The first Uganda Shillings Bond was issued in March 1999 and fully repaid in 2004.

The Bank established Ugandan shillings 40 billion Medium Term Note Programme in 2009 and subsequently issued the first tranche of notes in October, 2009. The issued Notes had the following features:

 

Issue date 14th October 2009
Repayment date 14th October 2016
Instrument Fixed Rate bond denominated in Uganda Shillings
Amount Ushs 40,000,000,000
Denomination Ushs 100,000, subject to minimum subscription of Ushs 5,000,000
Tenor Seven (7) years
Interest rate 14% p.a. fixed; 182-day Uganda government Treasury Bill rate plus 1.25%
Repayment Ten (10) equal semi-annual principal instalments
Early Redemption Not allowed
Arranger Stanbic Bank Uganda Limited
Fiscal Agent and register Stanbic Bank Uganda Limited +256 312 224600
Placing Agent African Alliance Limited, +256 414 235 577/3/8