CRDB Bank Plc
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
CRDB Bank Plc ("CRDB") is one of the largest banks in Tanzania and a universal bank providing financial services to individuals, MSMEs, and corporates through a robust network of branches, agents, ATMs, and mobile units across the country. The bank is listed on the Dar es Salaam Stock Exchange and has recently been expanding its operations across the region with subsidiaries in Burundi and DRC.
What is our funding objective?
FMO and Proparco are providing a USD 125 mln senior term loan with FMO contributing USD 75 mln and Proparco contributing USD 50 mln. The flexible long-term funding facility will support CRDB in delivering its strategic objectives to grow its SME portfolio and support its purpose to improve livelihoods and deliver sustainable impact.
Why do we fund this investment?
FMO funding will be used to on-lend to underserved segments, including CRDB’s Burundi subsidiary, as well as to women-owned SMEs, agriculture businesses, and eligible green assets.
What is the Environmental and Social categorization rationale?
CRDB is classified as E&S Cat. A bank due to a high E&S risk portfolio, both in terms of sector exposure and size. High environmental and social risk activities are concentrated particularly in agriculture, fishing, energy generation, mining, and construction. Contextual risks in these sectors revolve around habitat fragmentation, resource pollution, climate change, occupational health and safety issues, and child labor to name a few. CRDB has implemented an environmental and social management system and has a dedicated E&S team. The financing includes an action plan to further enhance CRDB stakeholder engagement and environmental and social risk capacity.
- Website customer/investment
- https://crdbbank.co.tz/en
- Region
- Africa
- Country
- Tanzania, United Republic of
- Sector
- Financial Institutions
- Publication date
- 2/8/2024
- Effective date
- 12/18/2023
- Total FMO financing
- USD 75.00 MLN
- Funding
- FMO NV
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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