The Eastern and Southern African Trade and Development Bank (TDB) is a multilateral, treaty-based development financial institution, with assets of over US$ 5 billion, and formerly known as the PTA Bank has announced a membership and subscription agreement with the Arab Bank for Economic Development in Africa (BADEA)
BADEA becomes TDB’s twelfth institutional shareholder with an investment of US$ 10 million. This investment builds on a four-year partnership with BADEA, during which a total of US$ 55 million in lines of credit were extended by BADEA for the benefit of promoting trade between Arab countries and the Bank’s Member States, as well as infrastructure project finance activities throughout the Region.
Commenting on today’s signing, TDB President and Chief Executive, Mr. Admassu Tadesse says that the Bank “is delighted to elevate its existing cooperation with BADEA to a strategic partnership level, and pleased to welcome BADEA to TDB’s diverse shareholder community. We are excited by the promise to make a bigger impact in our region together with BADEA.”
The Bank’s membership comprises 22 Member States from across COMESA, EAC and SADC, 2 non-regional members, Belarus and China, as well as 12 institutional shareholders.
In addition to BADEA, the latter include the African Development Bank, Africa Reinsurance Corporation, Banco Nacional de Investimento (Mozambique), Mauritian Eagle Insurance Company, National Pension Fund (Mauritius), National Social Security Fund (Uganda), OPEC Fund for International Development (OFID), PTA Reinsurance Company, Rwanda Social Security Board, Sacos Group (Seychelles) and Seychelles Pension Fund.
Since early 2013, institutional investors and DFIs have invested more than US$ 153 million in TDB’s Class B shares, significantly above capital raising targets. In addition to high returns, Class B shares also offer significant development impact, through TDB’s investments in projects and infrastructure, and support for the security and supply of strategic commodities in Member States. TDB plans to further grow its geographic footprint and impact, and expects to continue rewarding investors with attractive dividend yields and capital growth.
Commenting on the signing ceremony, Dr. Sidi Ould Tah, BADEA’s Director General notes that BADEA “is excited to see the partnership between the two institutions; which goes back to only 2015, is now reaching new heights with BADEA’s equity investment of US$ 10 million being signed today. We highly value the fruitful cooperation that BADEA and TDB have been able to develop over the last few years as we aspire to achieve a visible development impact in the region’s economies.”