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PRESS RELEASE
AfDB Invests US $70 Million in PTA Bank to Boost Trade and Economic Growth in Africa
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PTA Bank was established in 1985 as the financing arm of the Common Market for East and Southern Africa (COMESA) and is headquartered in Bujumbura, Burundi. The bank’s shareholders include Burundi, Comoros, Democratic Republic of Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Malawi, Mauritius, Rwanda, Seychelles, Somalia, Sudan, Tanzania, Uganda, Zambia and Zimbabwe as well as the AfDB and the People’s Republic of China. PTA Bank’s mandate is to foster economic and social development in regional member states through regional integration, trade and project finance. Its financial performance in recent years has been robust, despite the global financial crisis, and has consistently posted healthy profits and achieved good asset quality over the last five years, and has also strengthened its corporate governance and risk-management structures and processes.
The provision of the financial package builds on the existing strong partnership between PTA Bank and AfDB based on synergies stemming from complementary sources of comparative advantage. PTA Bank, with its field presence and market knowledge, provides a logical channel for AfDB to reach out to end-customers by efficiently leveraging its scale. Moreover, AfDB’s subscription of new equity in PTA Bank is expected to play a catalytic role and hence encourage more institutional shareholders to boost the bank’s capitalization. Finally, the financial package is complementary to the financial support provided by other debt financiers, among others, the European Investment Bank (EIB), Agence Française de Développement (AFD) and KfW (a German government-owned development bank). The financial package will further enhance PTA Bank’s capacity to serve as a financial intermediary through which other developmental institutions can channel their funds, such as the recent accreditation as a regional intermediary by the the Organisation for Economic Co-operation and Development (OECD)’s Development Assistance Committee (DAC).
By focusing on trade finance and financing of small and medium enterprises and infrastructure projects, the financial package to PTA Bank will have positive impact on inclusive growth, private sector development and job creation through increased taxes and government revenues in Eastern and Southern African countries and also across the continent through leverage stemming from regional trade and regional infrastructure projects.
Distributed by the African Press Organization on behalf of the African Development Bank (AfDB).
Contacts:
Sabrina Hadjadj Aoul, Senior Communications Officer, T. +216 71 10 26 21 / C. +216 98 70 98 43 / s.hadjadjaoul@afdb.org
Julius Karuga, Senior Investment Officer, T. +216 71 10 16 63/ j.karuga@afdb.org
About the African Development Bank Group
The African Development Bank Group (AfDB) (http://www.afdb.org) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 34 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 53 regional member states.
For more information: http://j.mp/AfDB_Media
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