AfricaPress-Tanzania: CRDB Bank, the leading bank in the country, has received a guarantee of up to 110bn/- from GuarantCo, a Private Infrastructure Development Group (PIDG) company.
The five years’ loan portfolio guarantee, will allow the leading lender to more readily increase financing of infrastructure that will pave way for the growth of other key sectors such as agriculture, manufacturing, and energy.
Speaking on the partnership, CRDB Bank Group CEO and Managing Director, Abdulmajid Nsekela said the partnership with GuarantCo demonstrates their long-standing commitment to supporting the economic growth of the country.
“This guarantee will enhance CRDB’s capability to invest in strategic projects and initiatives that benefit our country and all Tanzanians. Our focus is to create an enabling environment for investment by pursuing mutual partnerships to mobilize the finances required for growth,” Mr Nsekela said yesterday.
The CEO said the bank’s partnership with GuarantCo will also support the government’s initiatives in financing large infrastructure projects by extending affordable capital and operational loans to contractors.
“Apart from increasing the availability of finance to businesses, projects financed under GuarantCo agreement will be in the local currency, which avoids the risk of foreign exchange loss for foreign arranged financing,” said Mr Nsekela.
GuarantCo CEO, Lasitha Perera said they are delighted to have built this important strategic partnership with CRDB and work with them to explore further innovative transaction structures to finance infrastructure projects in the country in the longer term.
“This guarantee by GuarantCo reflects our on-going commitment to enabling local financial institutions to deliver more essential infrastructure to improve the lives of people living in Tanzania”, Mr Perera said.
CRDB plays a key role in accelerating economic growth in the country. The bank has been at the forefront of supporting the country’s agenda of building a semi-industrialized economy by 2025.
Last year, the Bank launched bridge financing products to support contractors, sub-contractors, and service companies involved in major projects across the country.
Likewise, the bank has been involved in major projects, such as the construction of the Standard Gauge Railway (SGR), the Nyerere Hydro-electric Power Project, and the construction of terminal III at Julius Nyerere International Airport (JNIA).
