PTA Bank gets Sh3.8bn funding
PTA Bank has received a loan facility of $50 million (Sh3.8 billion) from a consortium of international financiers for on-lending to small and medium sized corporate clients.
They include FMO the International Development Bank of Netherlands which is the lead arranger of the long term loan carrying $20 million of the total and organising another $30 million from the European finance partners.
Dr Michael Gondwe, the president of PTA Bank and FMO’s Jurgen Rigterink signed the deal at the Africa finance and investment forum held in Amsterdam late last year though the disbursement took place on Monday.
“By extending this facility to us in light of the recent harsh global economic crisis, it is undoubtedly a mark of a healthy partnership between our European partners and ourselves. More critically, it will help us grow our portfolio and promote development of the bank’s member states,” said Dr Gondwe.
“This and previous facilities continue to make a tremendous impact on operations of the PTA Bank,” he said.
Dr Gondwe said the partnership with FMO has been invaluable in strengthening corporate governance, environment and social management practices within the bank.
This relationship has also led to an exchange of best practices.
The bank has received support from FMO since 2004 when the two institutions signed a trade finance agreement of $15 million which was converted to a $20 million three year facility in March last year.
PTA Bank is a regional development financial institution mandated to promote regional integration by providing development capital to viable businesses in its members states.
It has 19 shareholders including, the African Development Bank, Burundi, China, Comoros, Djibouti, Egypt, Eritrea and Ethiopia.
Others are Kenya, Malawi, Mauritius, Rwanda, Seychelles, Somalia, Sudan, Tanzania, Uganda, Zambia and Zimbabwe.