Eastern and Southern African Trade and Development Bank - Non-Honoring of Financial Obligations - Regional Development Bank (MIGA-14662)

Countries
  • Burundi
  • Comoros
  • Congo, Democratic Republic of
  • Djibouti
  • Egypt
  • Eritrea
  • Ethiopia
  • Kenya
  • Madagascar
  • Malawi
  • Mauritania
  • Mozambique
  • Rwanda
  • Seychelles
  • Somalia
  • South Sudan
  • Sudan
  • Swaziland
  • Tanzania
  • Uganda
  • Zambia
  • Zimbabwe
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 18, 2020
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Standard Chartered Bank (as agent, on behalf of itself and other commercial banks to be identified)
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 411.46 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 377
Converted using 2020-05-18 exchange rate.
Primary Source

Original disclosure @ MIGA website

Updated in EWS Jun 11, 2020

Disclosed by Bank May 15, 2020


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

BURUNDI, COMOROS, DEMOCRATIC REPUBLIC OF CONGO, DJIBOUTI, EGYPT, ERITREA, ESWATINI, ETHIOPIA, KENYA, MADAGASCAR, MALAWI, MAURITIUS, MOZAMBIQUE, RWANDA, SEYCHELLES, SOMALIA, SOUTH SUDAN, SUDAN, TANZANIA, UGANDA, ZAMBIA, AND ZIMBABWE

According to bank provided information, this summary describes non-shareholder loan investments by a syndicate of commercial banks (including Standard Chartered Bank, as agent, on behalf of itself and other commercial banks to be identified, together the "Lenders") to the Eastern and Southern African Trade and Development Bank ("TDB"), formerly known as PTA Bank, with a principal office in Mauritius (dual-domiciled in Burundi, with the operational hub in Kenya). Standard Chartered Bank (as agent, on behalf of itself and the Lenders) has applied for a MIGA guarantee of up to EUR 377 million of principal plus interest and premium, for a period up to 10 years against the risk of non-honoring of financial obligations by a regional development bank ("NHFO-RDB").

TDB is a regional development bank operating in the Tripartite Free Trade Area ("TFTA") comprising the Common Market for Eastern and Southern Africa ("COMESA"), the East African Community ("EAC") and the Southern African Development Community ("SADC"),providing trade and project finance solutions to private and public borrowers. TDB aims to foster economic integration in the region through support of trade, infrastructure development, and private sector growth. TDB also supports national development agencies by co-financing their projects.

Under this proposed project, the Lenders will extend a loan facility denominated in Euros to TDB to support the growth and diversification of TDB's trade finance portfolio (the "Project"). The facility is expected to include EUR 50 million specifically earmarked for COVID-19 response.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

*Contact information not provided at the time of disclosure*

ACCOUNTABILITY MECHANISM OF MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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How it works