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) and 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, both private and public-sector clients, on sustainable and commercial principles.

Funding objective

A USD 15 mln Trade Facility Limit to existing client TDB under the FMO Trade Enhancement Program to further support trade finance activities.

Why we fund this project

Trade finance is an important mean to promote and facilitate trade in- and between emerging markets. With African economies on the rise again, there is increasing demand for trade finance lines. Various recent studies have indicated a multi-billion trade finance gap annually in Africa alone as the international financial crisis saw many international banks pulling back from emerging markets. By supporting trade finance activities, FMO helps addressing the trade finance gap thereby increasing capacity to facilitate trade flows with- and within Africa.

Environmental and social rationale

This facility has been categorized as Category B/C in accordance with FMO’s Sustainability Policy. The trade finance activities are deemed to have potential limited adverse environmental and social risks and/or impacts. As part of this facility, TDB will be required to apply the EDFI Exclusion List and national E&S laws and regulations.

Region
Africa
Country
Africa
Sector
Financial Institutions
Signing date
11/15/2018
Total FMO financing
USD 15.00 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