CRDB TZ Sustainability Bond (IFC-47637)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Tanzania
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
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
Aug 3, 2023
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
CRDB Bank Plc.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Education and Health
  • Energy
  • Finance
  • Transport
  • Water and Sanitation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 60.00 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.
Loan Amount (USD)
$ 60.00 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.
Project Cost (USD)
$ 300.00 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.
Primary Source

Original disclosure @ IFC website

Updated in EWS Nov 30, 2023

Disclosed by Bank Oct 23, 2023

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

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.

As stated by the IFC, the Project entails an investment of up to US$60 million in Tanzanian Shillings (“TZS”) equivalent in a senior unsecured Green bond with a tenor of five years by CRDB Bank Plc.. CRDB expects to issue a US$300 million multi-currency Medium Term Note program in various tranches aimed at financing green, social, and sustainability projects. The project pertains to an investment in the first tranche of up to TZS 40 billion (approximately US$16 million), with a Green Shoe Option of TZS 15 billion (approximately US$6million). This is CRDB’s first Green Bond and the first to be issued in Tanzania.
The proceeds will be used to provide access to finance for green transactions and will be in accordance with CRDB’s Green, Bond Framework to finance or refinance eligible sub-projects that would contribute to sustainable and inclusive growth in Tanzania.
IFC intends to anchor up to 40 percent of the entire program, however, IFC’s own account investment will be limited to no more than US$60 million [or TZS equivalent] in the first tranche. The Project is expected to be supported by the IDA20 Private Sector Window Local Currency Facility and the Market Accelerator for Green Construction Program.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The IFC categorized the project as FI-2.

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.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the IFC, CRDB, formerly known as the Cooperative and Rural Development Bank was privatized in 1996 when the Danish International Development Agency (DANIDA) and the Government of Tanzania took a 30 percent stake in the Bank through a joint venture called Danida Investment Fund (DIF). In 2009, CRDB was listed on the Dar es Salaam Stock Exchange and closed with a market capitalization of TZS 1,241 billion (US$531 million) as of July 31, 2023. With a reported market share of 23 percent in total assets and 24 percent in deposits as of December 2022, CRDB is currently the largest bank in Tanzania. The Bank offers a comprehensive range of corporate, retail, business, treasury and wholesale microfinance services through its wide network of branches and ATMs across the country. CRDB has a presence in Burundi and in the Democratic Republic of Congo. CRDB’s largest shareholders are DIF with 21 percent, the Public Service Social Security Fund Tanzania (PSSSF Tanzania), a state pension fund with 13.3 percent ownership, and the National Social Security Fund Uganda (NSSF Uganda) with 7.5 percent ownership.


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.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Financial Intermediary - CRDB Bank Tanzania Plc.:

Alex Ngusaru - Director of Treasury and Capital Markets
Phone: +255 22 2197700
Email: info@crdbbank.co.tz
Address: Plot No. 25 & 26, Ali Hassan Mwinyi Road and Plot No. 21 Barack Obama Drive, P.O. Box 268, 11101, Dar es Salaam, Tanzania
Website: www.crdbbank.co.tz/en

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/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

How it works

How it works