PTA BANK - CREDIT LINE FOR SMES AND MIDCAPS

Promoter – Financial Intermediary

THE EASTERN AND SOUTHERN AFRICAN TRADE AND DEVELOPMENT BANK

Location

• Regional - East Africa
• Regional - Southern Africa

Description

The programme is dedicated to SMEs and Mid-caps in PTA Bank's Member States. It constitutes of a credit line to the Eastern and Southern African Trade and Development Bank headquartered in Bujumbura, with regional offices in Nairobi, Harare and Mauritius – commonly known as the Preferential Trade Agreement (PTA) Bank, a regional development financial institution (DFI) – for on-lending to final private sector entities in EIB eligible PTA Member States. The loan will mainly finance investments in agribusiness, energy, manufacturing and service sectors.

Objectives

The line of credit is intended to support the availability of term finance to small and medium-sized enterprises and mid-cap companies operating in the private sector.

Sector(s)

• Credit lines

Proposed EIB finance (Approximate amount)

EUR 80 million

Total cost (Approximate amount)

Not applicable.

Environmental aspects

PTA Bank will ensure that projects financed comply, as a minimum, with the environmental standards of PTA Bank’s Member States. In order to further mitigate potential Environmental and Social risks, the side-letter to the financial contract will include conditions pertinent for this promoter and region in line with requirements under EU Directives.

Procurement

The Bank will require the promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement. However, the operation will be limited to private sector entities only, implying that there are no public procurement related concerns at the outset.

Status

Signed - 25/11/2014