The Eastern and Southern African Trade and Development Bank, commonly known as “Trade and Development Bank (TDB Bank)” is an African regional development financial institution established in 1985. The Bank’s mandate is to finance and foster trade, socio-economic development and regional economic integration across its Member States Although PTA Bank is an institution of the Common Market for Eastern and Southern Africa (COMESA), its membership is open to Non-COMESA States, non-regional countries as well as institutional shareholders. It offers a broad range of products and services, across both the private and public sectors, including debt, equity and quasi-equity as well as guarantees. PTA Bank’s investments cut across agriculture, trade, industry, infrastructure, energy and tourism, among others and are made on a commercial basis and sustainability principles.
Products and services
The Bank provides the following core products and services:
Trade Finance: PTA Bank aims to promote the development of Trade among the Member States, furthering the aims of COMESA region by financing, projects/transactions designed to make the economies of the Member states increasingly complementary to each other. In addition to the provision of finance for both intra and extra regional export and import trade flows, the Bank can finance transactions where the direct economic benefit accrues to a COMESA member state. The range of products offered includes Import and Export Financing, Structured Commodity Finance, Guarantees and Bonds, Pre and Post Shipment Finance, Issuance of Letters of Credit, Receivable Backed and Asset Financing.
Project and Infrastructure Finance: PTA Bank provides medium and long term financing on commercial terms. Target sectors are those considered as high impact such as agribusiness and infrastructure which is a catalyst for development in Member States. The range of financing solutions offered includes Project Finance, Corporate Finance, Leasing and Guarantees amongst others. PTA Bank provides funding to both public and private enterprises, covering almost all sectors of economy. The Bank employs either one or a combination of modes of financing which are; direct financing (senior and mezzanine debt or equity), co-financing with local and/or foreign lenders, loan guarantees and syndications.
Funds Management: In 2013, PTA Bank established a Fund’s Management Department to support the implementation of the Bank’s strategy in pursuing growth and diversification, by spearheading new initiatives.
Two strategic fund initiatives have been launched to date:
- The COMESA Infrastructure Fund (CIF). The COMESA Infrastructure Fund (CIF) will be one of the first two funds to be established by PTA Bank as promoter following the formal transfer of the CIF by COMESA to PTA Bank. The CIF will be a Mauritius based fund to be managed by a fund management company set up as joint venture between PTA Bank and an independent regional private equity manager; and
- The Eastern and Southern African Trade Fund. The Eastern and Southern African Trade Fund will be a Mauritius-based open-ended investment fund which will undertake trade finance related investments. PTA Bank is in a unique position to act as a promoter of the Eastern and Southern African Trade Fund owing to its leadership in the industry and strong network of partners. This innovation is designed to further accelerate regional development and integration and is specifically targeted at development-orientated global investors.
Headquartered in Bujumbura (Burundi) with regional hubs in Nairobi (Kenya), Harare (Zimbabwe) and Ebene (Mauritius), PTA Bank’s current shareholders include:
- Regional members: Burundi, Comoros, the Democratic Republic of Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Malawi, Mauritius, Rwanda, Seychelles, Somalia, Sudan, Uganda, Zambia and Zimbabwe.
- Non-regional members: Belarus and China.
- Institutional members: African Development Bank, National Pensions Fund of Mauritius, Mauritian Eagle Insurance Company Ltd, and Rwanda Social Security Board.
The Bank is further expanding its shareholder base as it repositions itself as a more inclusive Regional Development Bank serving all countries in or adjacent to eastern and southern Africa – subject to membership – working with the East African Community, the Intergovernmental Authority on Development (IGAD), the Indian Ocean Commission (IOC) and the Southern African Development Community (SADC), in addition to its founding regional economic community, COMESA.
New membership drive is also underway with a view to signing on new prospective shareholders through the approval of an increase in the Bank’s authorized capital from US$ 2.0 billion to US$ 3.0 billion and the creation of 220,584 new Class B shares.
For more information, please consult: www.ptabank.org.