Project detail - EASTERN AND SOUTHERN AFRICAN TRADE

EASTERN AND SOUTHERN AFRICAN TRADE

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Who is our client

The Eastern and Southern African Trade and Development Bank (TDB), previously PTA Bank, is a specialized African regional financial institution established in 1985 that provides short, medium and long-term financing across a wide set of sectors to both private and public-sector clients, on sustainable and commercial principles.

Funding objective

The Framework Facility is intended to be used to fund individual commercial transactions between Dutch exporters and local African importers. TDB Bank will on-lend the funds to the local importers.

Why we fund this project

The rationale for establishing a Framework Agreement is that it provides FMO NL Business with the possibility to also execute smaller transactions in a cost effective and time efficient way as terms and documentation for the underlying Individual Transactions will be standardized upfront.

Environmental and social rationale

Overall, TDB is categorized as E&S FI-A, based on exposure to high risk sectors. These overall risks are assumed to be well mitigated as TDB has a strong commitment to E&S risk management and has included the IFC Performance Standards in their ESMS. FMO and TDB have agreed on an efficient way to ensure sound E&S management under the framework agreement. For each underlying Individual Transaction TDB is to provide satisfactory E&S due diligence and monitor information to allow FMO to confirm the importer’s (ongoing) compliance with FMO’s E&S conditions.

More investments

Date Total FMO financing
11/15/2018 USD 15.00 MLN
Region
Africa
Country
Africa
Sector
Financial Institutions
Signing date
4/23/2020
Total FMO financing
EUR 40.00 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
A