Release date: 28 January 2011
Promoter – Financial Intermediary
United Bank for Africa Plc
Location
Description
The investment amounts to EUR 75 million, which will be split as follows: (i) up to EUR 50 million senior loan with maturity up to 5 years to UBA Plc, for on-lending to SMEs across African countries – except Nigeria – through UBA’s subsidiaries in the region; and (ii) up to EUR 25 million subordinated convertible debt, with a maturity of up to 7 years, to support UBA’s growth strategy.
Objectives
The Bank aims at supporting the emergence of stronger and more professional financial institutions in Sub-Saharan Africa and, hence, contributing to the development of the banking sector. It intends to assist United Bank for Africa Plc. Nigeria (UBA) in this context and will focus on the strengthening and expansion of its regional network – which currently counts fifteen countries outside of Nigeria. This will allow the EIB to support, amongst others, financial sector development in post-war or unstable countries such as Ivory Coast, and Sierra Leone, as well as in francophone countries with underdeveloped financial sectors, such as Benin, Chad, DRC and Gabon.
Sector(s)
Proposed EIB finance (Approximate amount)
Up to EUR 75 million
Total cost (Approximate amount)
Not applicable
Environmental aspects
The Bank will ensure that the impact of the SME sub-projects financed by this facility are in line with its principles and standards as regards environmental and social issues.
Procurement
The intermediary will ensure that equipment, works and services to be financed under this operation will be procured at the most advantageous prices, having regard to quality and efficiency, and that an open international bidding procedure will be followed where appropriate, in accordance with the Bank’s Procurement Guidelines.
Status
Signed - 21/09/2012
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).