Washington, D.C. 21 April 2018 – OFID (the OPEC Fund for International Development) signed a membership and subscription agreement with the Eastern and Southern African Trade and Development Bank (TDB), subscribing to the bank’s Class B shares in capital stock amounting to US$20 million.
Admassu Tadesse, President and Chief Executive of TDB and Suleiman J Al-Herbish, Director-General of OFID, signed the agreement on the sidelines of the IMF/World Bank 2018 Spring Meetings in Washington, D.C.
“We are delighted with the expanded partnership between OFID and TDB, which has now been elevated to a strategic level. The accession of OFID to the membership of TDB is a reflection of the increased commitment of OFID to our fast growing region and recognition of TDB as a regional development finance partner and intermediary of choice,” said TDB’s President Tadesse. The deepening of our partnership will unlock more synergies as we jointly advance trade, infrastructure, agribusiness and manufacturing, toward the realization of the sustainable development goals (SDGs) in eastern and southern Africa.”
OFID Director-General Al-Herbish said: “TDB has renewed its commitment to regional socioeconomic development in Africa and so represents a good fit for OFID. In 2017 alone, OFID approved US$695.6 million for development operations in Africa and a total of 32 African countries shared this amount. We remain committed to the continent.” This investment enhances a nine year partnership with TDB, during which time OFID has approved lines of credit totaling US$130 million to the bank for the benefit of beneficiary countries in eastern and southern Africa.
This investment enhances a nine-year partnership with TDB, during which time OFID has approved lines of credit totaling US$130 million to the bank for the benefit of beneficiary countries in Eastern and Southern Africa.
Since early 2013, institutional investors and DFIs invested more than US$150 million in TDB’s Class B shares, significantly above capital raising targets.
TDB’s Class B shares provide an attractive platform to diversify the shareholding of the bank and attract reputable institutional investors to help enhance the bank’s significant impact in providing finance for agribusiness, financial services, manufacturing, heavy industries and petrochemicals-related transactions. Collectively, these sectors account for 64% of its portfolio.
TDB recently rebranded from PTA Bank, which represents the bank’s rebirth, rejuvenation and renewed commitment to contribute more significantly towards the continent’s socio-economic development. The bank currently has a US$5.2 billion balance sheet, with a strategic vision to grow to a US$10 billion bank by 2022.