During the 6th Tokyo International Conference on African Development (TICAD VI), a major global forum and framework to facilitate the implementation of initiatives for promoting African development under the dual principle of African “ownership” and international “partnership”, PTA Bank signed various agreements with Japanese partners. A central feature of this framework is the cooperation between Asia and Africa in promoting Africa’s development. The international conference took place for the first time on the African continent.
Coktail event with SMBC and PTA Bank
Firstly, PTA Bank signed an ECA credit line agreement with Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI) and Sumitomo Mitsui Banking Corporation (SMBC). SMBC has been supporting the Bank in arranging a co-financing facility of USD 80 million with Japan Bank for International Cooperation (JBIC) backed by Nippon Export and Investment Insurance (NEXI) under Export Credit Agency Finance (ECA) facility to PTA Bank. NEXI will set up a credit line totaling USD 40 million to provide loan insurance for the financing extended by SMBC.
The credit line is intended to provide business operators mainly in Sub-Saharan Africa, through PTA Bank, funds for purchasing machinery and facilities from Japan. Demand for machinery and facilities, which are needed for economic development, is expected to continue to escalate in Sub-Saharan Africa.
Secondly, PTA Bank signed a Memorandum of Understanding (MOU) with Mizuho Bank Ltd., for business cooperation in diversification of funding sources and trade finance. Mizuho Bank Ltd, is a long standing lender to the PTA Bank. The cooperation with Mizuho Bank has been critical in assisting the Bank to access financing in Asian markets and in supporting trade finance transactions. The MOU serves to reaffirm and expand the relationship between the two Banks. It also aims to expand the network and range of financial services available to PTA Bank member state customers.
Through this enhanced partnership, Mizuho and PTA Bank will continue to utilize their full- service capabilities to support customers entering or expanding their business in Africa while enhancing benefits for beneficiaries in Eastern and Southern Africa— and in so doing contribute to Africa’s sustainable development.
Last but not least, PTA Bank signed a Memorandum of Understanding (MOU) with SMBC. SMBC entered into a MOU with PTA Bank on 14 March 2014 with a view to collaboration in the area of trade finance, which has led to successful cooperation contributing to Africa’s sustainable growth, such as collaboration in trade finance for the export of African agricultural products. Under the new MOU, SMBC and PTA Bank will expand areas of business cooperation to include Export Credit Agency finance, joint advisory work, and business referral in order to provide a wider range of support to both banks’ clients. This MOU is intended to strengthen the partnership between SMBC and PTA Bank and to enable SMBC to better meet its clients’ needs regarding expansion of trade activities with African countries and business opportunities in Africa.