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Title:
Multinational - The Eastern and Southern African Trade & Development Bank (TDB) RPA
Detail:
This project is a USD 150 million Trade Finance Unfunded Risk Participation Agreement (RPA) facility between the African Development Bank (AfDB) and The Eastern and Southern African Trade & Development Bank (TDB). The parties will share the default risk on a portfolio of eligible trade finance transactions originated by Issuing Banks (IBs) and indemnified by TDB. In general, the Bank will provide up to 50% guarantee cover, but this can increase up to 75% for transactions in LICs and transition states such as Burundi, Ethiopia, Malawi, Tanzania, Zambia, Zimbabwe and Uganda. The Facility tenor will be 3 years with an option to extend for another 6 months on maturity while underlying transactions will have a maximum tenor of 2 years. Beneficiaries of this facility are IBs in TDB’s member states whose ability to grow their trade finance business has been constrained by inadequate trade confirmation lines from international confirming banks, as well as SMEs and local firms who rely on these IBs to fulfil their trade finance commitments. The project contributes to climate finance, with 38 million USD of the total approved amount dedicated to mitigation.
Country:
International
Source:
African Development Bank Group
Published Date:
13.02.2024
URL:
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Sectors:
Defence and Security Construction Energy-Power and Electrical Computer Hardwares and Consumables
Export requests Import requests Partnership requests Service requests