Media Contacts:
Anne-Marie Iskandar
Senior Communications Officer
Corporate Affairs and Investor Relations
Trade and Development Bank
Anne-Marie.Iskandar@tdbgroup.org
Yuko Enami
Investment Officer
Private Sector Investment Finance Division
Private Sector Partnership and Finance Department
Enami.Yuko@jica.go.jp
Maryanne Mwaura
Head of Public Affairs – Sub-Saharan Africa
Maryanne.mwaura@citi.com
Lynda Cooke
Director, Communications & Brand
SMBC Group EMEA
emeamedia@gb.smbcgroup.com
Nairobi, 07th March, 2024 – The Eastern and Southern African Trade and Development Bank Group (TDB Group), Japan International Cooperation Agency (JICA), Citibank, and SMBC Group (SMBC) are pleased to announce a EUR 240 million facility agreement aiming to foster and facilitate private sector development initiatives, to improve inclusive economic growth in less developed countries (LDCs).
The signing ceremony took place on February 26th, 2024, at TDB Group’s Operations Hub in Nairobi, Kenya, TDB Tower in the presence of Admassu Tadesse, Group President and Managing Director, TDB Group; Jin Wakabayashi, Deputy Director General, Private Sector Partnership and Finance Department, JICA; Martin Mugambi, Managing Director, CEO Kenya, Citibank; and Hirokazu Okado, Managing Director, International and Structured Finance, SMBC Group.
The line of credit is composed of a long-term project finance tranche from JICA, and a short-term trade finance tranche from SMBC and Citibank, both mandated lead arrangers (MLA) in the transaction.
The facility reflects the institutions’ commitment to enhancing economic growth, encouraging entrepreneurship, and promoting financial inclusion in TDB Group member states.
Among anticipated impacts, the facility is expected to increase access to finance for MSMEs, enabling them to invest in growth, innovation, and job creation. Likewise, it will look to support investments in agribusiness expansion and agricultural innovation through innovative practices and technologies and supply chain improvements. Furthermore, the facility will focus on supporting investments in industrial development including in manufacturing, as well as in infrastructure development to catalyse an enabling business environment.
Through direct lending to private sector, co-financing and on-lending via financial intermediary, the facility is poised to positively impact livelihoods, reducing poverty and creating employment, opportunities including in rural areas, to contribute to improving food security and sustainable food systems, as well as to overall economic growth and stability.
“We are pleased to forge this new strategic partnership with JICA and to expand the fruitful ones we have been building with Citibank and SMBC over the years” commented Admassu Tadesse, TDB Group President and Managing Director. “We look forward to working together to address the unique needs of the African region we serve, fostering cross-border cooperation and leveraging innovative financial solutions, to bolster economic resilience for the private sector and promote inclusive and sustainable growth.”
“This Facility is especially highlighted given the fact that it is JICA’s very first loan extended to TDB which signifies a milestone achievement of a new partnership between the two institutions, with strong collaboration with Citigroup and SMBC” commented Jin Wakabayashi, Deputy Director General, Private Sector Partnership and Finance Department. “We are confident that the facility will be utilized effectively and sufficiently towards a smooth and sustainable recovery from multiple external shocks and vulnerabilities in the African region, under TDB’s extensive experience in this field.”
Martin Mugambi, Citi Kenya CEO said: “At Citi, we are committed to bringing solutions to our clients and this blended finance facility signifies not just an investment, but a commitment to fostering sustainable development and uplifting communities. For over three decades Citi has enabled TDB’s impact across the continent. We are proud to partner as the sole coordinator of the loan that will empower businesses that are dedicated to making a positive impact in their communities, creating pathways to economic stability and self-sufficiency across some of Africa’s least developed countries.”
“SMBC is very proud to have collaborated on this landmark transaction with TDB, JICA and Citibank,” commented Hirokazu Okado, Managing Director of International and Structured Finance, SMBC Group. “This transaction will be instrumental in creating social value and generating economic growth by supporting microfinance and agribusiness activities in TDB’s member countries.”
About TDB
Established in 1985, the Eastern and Southern African Trade and Development Bank (TDB) is an investment-grade African regional development finance group, with the mandate to finance and foster trade, regional economic integration, and sustainable development. With an asset base of USD10 bn, TDB Group has 25 African member states, which alongside non-regional member countries and institutional investors from Africa, Europe and Asia, form TDB’s community of shareholders.
TDB Group counts several subsidiaries and strategic business units including the Trade and Development Bank (TDB), TDB Group Asset Management (TAM), the Trade and Development Fund (TDF), TDB Captive Insurance Company (TCI), the ESATAL fund management company and TDB Academy.
About JICA
Established in 2003, Japan International Cooperation Agency (JICA), an incorporated administrative agency in charge of administering Japan’s Official Development Assistance (ODA), is one of the world’s largest bilateral aid agencies supporting socioeconomic development in developing countries in different regions of the world. It supports developing countries in addressing their development challenges through flexible combination of various cooperation modalities, such as Technical Cooperation, Finance and Investment Cooperation, and Grants. JICA has 96 overseas offices and operates in approximately 140 countries and regions of the world.
About Citibank
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in nearly 160 countries and jurisdictions, providing corporations, governments, investors, institutions, and individuals with a broad range of financial products and services.
Additional information may be found at www.citigroup.com | Twitter: @Citi | LinkedIn: www.linkedin.com/company/citi | YouTube: www.youtube.com/citi | Facebook: www.facebook.com/citi
About SMBC Group
SMBC Group is a core member of Sumitomo Mitsui Financial Group (SMFG), a Tokyo-based bank holding company that is ranked among the largest banks globally by assets under management. The Europe, Middle East and Africa (EMEA) Division is an integral part of SMBC Group’s Global Business Unit. Having first established an office in London over a century ago, SMBC has steadily grown its footprint across the region, and today has a network of over 30 offices in 20 cities, consisting of branches, representative offices, and subsidiaries. Through its combined entities, the EMEA Division delivers a universal banking platform and a full suite of corporate finance solutions to its customers. SMBC’s Corporate and Investment Banking platform offers a broad range of wholesale banking products and services in corporate, structured and trade finance, leveraged finance, loan capital markets, treasury, and asset financing and leasing. In addition, it provides investment banking and advisory services and a range of innovative solutions in global capital markets.
