Posted by: tdb April 9, 2020 No Comments

TDB Facilitates Important Infrastructure Projects in Uganda

TDB closes a 7-Year EUR300M syndicated loan for the Government of Uganda during the Covid-19 pandemic

Nairobi/Kampala, 9 April 2020 – To boost the efforts deployed towards financing Uganda’s development and infrastructure, the Eastern and Southern African Trade and Development Bank (TDB), formerly known as the PTA Bank, closed as Initial Mandated Lead Arranger (“IMLA”) a 7-year EUR 300 million Term Loan Facility for the Government of the Republic Uganda. TDB underwrote EUR 300 million as the original lender in this transaction which reached financial close on 27 March 2020.

TDB has been active in Uganda since the creation of Bank, providing support to the Government and to corporate clients alike. This benchmark transaction builds on a previous USD 200 million trade-enabling infrastructure transaction, among other deals.

Uganda’s stable macroeconomic context, low liquidity and debt distress risks, and manageable public debt stock were conducive to the transaction. The East African economy, now growing at faster than 6%, is rated B2 by Moody’s and B+ by Fitch with a stable outlook. This facility sets a new benchmark and lengthens Uganda’s debt yield curve, thereby allowing the Government to unlock further economic development financing, remain on track with its infrastructure projects, and boost the country’s resilience to coronavirus pandemic-related shocks.

Infrastructure being one of the most vital pillars on which the economic development of the continent rests, this transaction will go a long way in facilitating trade and connectivity, contributing to higher productivity and growth, and promoting economic inclusion in Uganda.

TDB has cummulatively arranged approximately USD 6 billion under its sovereign lending program in some of its Member States showcasing similar trends in terms of macroeconomic fundamentals. The program has resulted in creating a long-term debt capital market through tenor extension.

“TDB is pleased to have played a leadership role as IMLA in this transaction” says Admassu Tadesse, TDB President and Chief Executive. “At TDB, we strive to find bold, effective, innovative and tailor-made solutions to address our sovereign and corporate clients’ needs; solutions which will positively impact our region’s sustainable economic development. This transaction will be instrumental in making sure that infrastructure projects remain on track in Uganda, especially in this more challenging market environment marked by the Covid-19 pandemic”.

On a number of transactions, the Bank is the mandated lead arranger and crowds in groups of investors in syndicated loans for major financing. This has enabled TDB to penetrate and increase its market presence as it is now a first point of call for large ticket deals in the region. The Bank is ranked by the Bloomberg Leagues Table as No. 3 Mandated Lead Arranger on the continent, and No. 4 Bookrunner for 2019.

 

About TDB

Established in 1985, the Eastern and Southern African Trade and Development Bank (TDB) is a multilateral, treaty-based, investment-grade development financial institution, with assets of over USD 6 bn. The Bank’s mandate is to finance and foster trade, regional economic integration and sustainable development through trade finance and project and infrastructure finance.
www.tdbgroup.org

 

Media Contacts

Anne-Marie Iskandar, Senior Communications Officer
Corporate Affairs and Investor Relations
Trade and Development Bank
Anne-Marie.Iskandar@tdbgroup.org

 

Author: tdb

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