Tanzania Secures US$500 Million Deutsche Bank Loan
The loan will fund 50 infrastructure projects under the 2022/23 budget.
Tanzania’s Ministry of Finance has agreed a €450 million (US$500 million), seven-year lending facility with Deutsche Bank to finance 50 infrastructure projects in the country’s 2022/23 budget.
Deutsche Bank acted as the sole coordinating, mandated lead arranger and a lender on the dual tranche loan.
The first tranche comprises €300 million, fully underwritten by Deutsche Bank and benefiting from 95% insurance cover by the African Trade & Investment Development Insurance.
The second tranche is a commercial €150 million loan syndicated by Deutsche Bank. Banks in the syndication include Absa Bank Limited, Absa Bank (Mauritius) Limited and Société Générale acting as mandated lead arrangers and Nedbank Limited (London branch) acting as lead arranger.
The facility will be used to finance major infrastructure projects in Tanzania such as the construction of roads, hospitals, and power and water projects.
KPMG has been appointed to carry out agreed-upon procedures on project expenditures.
ConstructAfrica will be publishing its Tanzania Construction Market Report in August. For more information, please email email@example.com.
Photo: Dar es Salaam, Tanzania (© Blossfeldia | Dreamstime)