Denmark’s Investment Fund for Developing Countries (IFU) signed today a shareholder agreement with TDB, acquiring 1,750 of its Class B shares. With an investment of USD 20 million in TDB’s capital stock, IFU becomes TDB’s newest institutional shareholder.
A Cooperation Agreement was also signed during the same occasion between both institutions, whereby these agreed to collaborate on various new initiatives such as the Bank’s SME programme, special purpose funds and technical assistance.
With this agreement, TDB and IFU will also explore co-financing opportunities via various financing structures and information sharing, in key sectors including agriculture, healthcare, education, energy, hospitality and infrastructure.
Henrik Larsen, Deputy Head of Mission, Embassy of Denmark in Nairobi, and TDB President and Chief Executive Admassu Tadesse signed the agreement in the presence of Dr. Patrick Ignatius Gomes, Secretary General, ACP States and Her Excellency Chileshe Mpundu Kapwepwe, Secretary General, COMESA, at the 9th ACP Summit of Heads of State and Government in Nairobi.
“We are delighted to welcome IFU to our community of institutional shareholders. This reflects the growing partnership between TDB and institutional investors in Europe who have been regular investors in TDB’s international bonds over the years” says Admassu Tadesse, TDB President and Chief Executive. “This investment in TDB’s risk capital is a new frontier for European institutional investors, and we salute IFU for its pioneering role within Europe and look forward to working closely together in the sustainable economic development of the Region”.
“TDB is a very important institution with a significant impact on the integration and sustainable development of Eastern and Southern Africa. We are very pleased to engage in this new partnership and we believe our investment will help TDB’s important efforts in mobilizing more private finance for Africa. We are committed to enhance the effort towards targeted initiatives like financing for SMEs, investments in agribusiness and infrastructure, which are critical to achieving the sustainable development and climate goals”, says Torben Huss, CEO of IFU.
The Bank’s membership comprises 22 Member States from across COMESA, EAC and SADC, 2 non-regional members countries, and with IFU on board, 17 institutional shareholders, which include pension funds, insurance companies, DFIs and specialized funds.
TDB Class B shares offer exposure to fast-growing Eastern and Southern African economies and significant development impact, namely via the Bank’s investments in transformational projects and support to the security of strategic commodities in our Member States. To date, half of TDB’s portfolio directly and indirectly contributes to SDGs.
Mary Kamari, TDB’s Executive for Corporate Affairs and Investor Relations adds that: “In the past 6 years, institutional investors have invested almost US$ 220 million in TDB’s Class B shares, significantly above capital raising targets, with our net asset value (NAV) growing at double digit rates and dividends being paid annually from the Bank’s strong profit base. As TDB continues to grow its geographic footprint, it is committed to continuing to deliver triple bottom line results.”
Established in 1985, the Eastern and Southern African Trade and Development Bank (TDB) is a multilateral, treaty-based, investment-grade development financial institution, with assets of USD 6 bn. The Bank’s mandate is to finance and foster trade, regional economic integration and sustainable development through trade finance, project and infrastructure finance, asset management and advisory services.
IFU provides risk capital and advice to companies wishing to set up business in Africa, Asia, Latin America and parts of Europe. Investments are made on commercial terms in the form of equity and loans. The purpose is to contribute to economic and social development in the investment countries and support the Sustainable Development Goals. IFU and IFU managed funds have co-invested in close to 1,300 companies in more than 100 developing countries and emerging markets. Contracted investments total DKK 202 billion, of which IFU has contributed DKK 22 billion.