- The fourth round of CRDB’s syndicated loan received US$567mn in commitments from international lenders
- The list of global investors has grown from 17 in 2024 to 30 this year
Tanzania’s CRDB Bank has secured a US$200mn facility after global lenders oversubscribed its latest syndicated loan by more than double the target amount.
The country’s largest commercial bank said its latest syndicated loan facility, signed last week, had received US$567mn in commitments from international lenders, in a sign of its appeal among global investors.
Now in its fourth year, CRDB Bank’s syndication round offered global lenders the opportunity to join either the one-year or two-year term facility.
Initially aiming for US$100mn – US$90mn in the first tranche and US$10mn in the second – co-arrangers Investec Bank and Intesa Sanpaolo received US$416.5mn in commitments for year one and US$151mn for year two, which prompted the upsized facility.
This round marks a US$50mn increase on last year’s facility. The global lender pool has also grown from 17 to 30, to include additional financial institutions from across Africa, the Middle East, Europe and the UK.
The facility will support the bank’s lending portfolio for the corporate and small and medium enterprise (SME) sectors in Tanzania and Burundi, including project and infrastructure finance linked to the commodity sector.
“The oversubscription and uptake of longer-term tranches reflect the strong confidence investors have in Africa’s considerable growth potential, alongside CRDB Bank’s creditworthiness, reputation, and leadership,” says CRDB Bank Group CEO, Abdulmajid Nsekela.
“This positions us to continue delivering more innovative financial solutions and accelerating client growth across our markets.”
While the specific use of the proceeds is to “support general purpose across key sectors of the economy”, a CRDB spokesperson tells GTR, the bank is “actively expanding its suite of trade finance solutions” to “support trade-related financing especially in sectors that drive regional value chains”.
This includes its Trade Post Import Facility, a product that serves as “a real-time bridge financing tool, enabling importers to access working capital immediately upon goods arrival, thereby enhancing liquidity and operational efficiency”.
“CRDB Bank is strategically positioned to support trade flows across Tanzania and East Africa, particularly among the six landlocked countries in the region,” adds the CRDB spokesperson.
“Our infrastructure, regional presence, and tailored financial solutions are designed to facilitate cross-border trade and economic integration.”
