> PTA Bank:
Fostering Development and Integration The Eastern and Southern African Trade and Development Bank, commonly known as PTA Bank is an African regional development financial institution established in 1985. The bank’s mandate is to finance and foster trade, socio-economic development, and regional economic integration across its member states.
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he bank is owned by member countries from the Eastern and Southern Africa region, non-regional countries, and institutional shareholders. With an authorised capital of $3 billion, the bank offers a broad range of products and services across both the private and public sectors, including debt, equity and quasi-equity, as well as guarantees. PTA Bank’s investments cut across agriculture, trade, industry, infrastructure, energy, and tourism, amongst others and are made on a commercial basis and sustainability principles. The bank is headquartered in Bujumbura (Burundi), as well as in Nairobi (Kenya) where its corporate support centre and regional office are located. The other two regional offices are in Harare (Zimbabwe) and Ebene (Mauritius). The bank’s funds management business is headquartered in Mauritius. A multilateral development bank fostering regional integration, the bank is owned by nineteen member states from the Eastern and Southern Africa region, two non-regional members, and nine institutional members. PTA Bank’s current shareholders include: Burundi, Comoros, the Democratic Republic of Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Malawi, Mauritius, Rwanda, Seychelles, Somalia, Sudan, Uganda, Zambia, Zimbabwe, and Mozambique. It also has the African Development Bank, the National Pensions Fund of Mauritius, Mauritian Eagle Insurance Company Ltd, Rwanda Social Security Board, Africa Re, ZEP RE, Seychelles Pension Fund, Banco Nacional Investimento (BNI), and the National Social Security Fund of Uganda as institutional shareholders, while the People’s Republic of China and the Republic of Belarus (Paritetbank) are non-regional member countries.
“Being at the forefront of extending development capital and financial services to the region, the bank aims to advance regional growth and itegration through its customerfocused and innovative financing instruments.” The bank is in negotiations for further subscriptions from DFIs (direct foreign investors), sovereign wealth funds, national pension funds, and private investors where their long term interests are aligned with the bank’s mission to integrate and advance the economies of the region. Significantly more capital will continue to be raised as interest in Class B shares remains strong within the region and beyond. PRODUCTS AND STRATEGIC BUSINESS INITIATIVES Being at the forefront of extending development capital and financial services to the region, the bank aims to advance regional growth and integration through its customer-focused and innovative financing instruments. The bank provides the following core products and services: Trade Finance – PTA Bank aims to promote the development of trade among the member states, furthering the aims of COMESA (Common Market for Eastern and Southern Africa) by financing projects and transactions designed to make the economies of the member states increasingly complementary to each other. Further to the provision of finance for both intra and extra regional export and import trade flows, the bank can finance transactions where the
direct economic benefit accrues to a COMESA member state. The range of products offered includes import and export financing, structured commodity finance, guarantees and bonds, pre and post shipment finance, issuance of letters of credit, receivable backed finance, and asset financing. Project and Infrastructure Finance – PTA Bank provides medium- and long-term financing on commercial terms. Target sectors are those considered as high impact such as agribusiness and infrastructure which are a catalyst for development in member states. The range of financing solutions offered includes project finance, corporate finance, leasing and guarantees, amongst others. PTA Bank provides funding to both public and private enterprises, covering almost all sectors of economy. The bank employs either one or a combination of modes of financing which are; direct financing (senior and mezzanine debt or equity), co-financing with local and/or foreign lenders, loan guarantees, and syndications. Funds Management – In 2013, by spearheading new initiatives, the bank launched a funding initiative to support the implementation of the bank’s strategy in pursuing growth, diversification and innovation. Two strategic business initiatives have been set up and registered to date: 1. The COMESA Infrastructure Fund (CIF) – This will be one of the first two funds to be established by PTA Bank as promoter following the formal transfer of the CIF by COMESA to PTA Bank. The CIF is a Mauritius based fund managed by a fund management company set up as joint venture between PTA Bank and Harith. 2. The Eastern and Southern African Trade Fund (ESATF) – This fund is a Mauritius-based open-
“Over the last few years, the bank has won several awards in recognition of the bank’s adoption of high standards of governance and performance.” 144
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