UBA secures Sh11b for trade financing

By Standard Reporter

East African businesses are set to benefit from Sh11.2 billion ($150 million) loan that United Bank for Africa (UBA) has received from the African Development Bank (AfDB).

UBA East Africa Regional Chief Executive Officer, Manz Denga, yesterday said two loan agreements signed between UBA plc, UBA Kenya’s parent company, and AfDB, has opened a crucial window for infrastructure and trade finance support for the region.

"Our qualifying customers in East Africa are poised to benefit greatly beginning early next year, underpinning our support for the region" said Denga, who is also UBA Kenya managing director.

Last week, the vice president in charge of regional and country programmes and policy at AfDB, Aloysius Uche Ordu, and UBA Plc Deputy Managing Director, Tuedor-Matthews, signed two loan agreements worth Sh11.2 billion.

"With our newly established presence in Kenya and Tanzania, and sizable infrastructure in Uganda, this can only be good news for all three countries," said Denga.

The loans are the largest facilities to date granted by the AfDB to a private sector financial institution in Africa.

"Regional commercial banks such as UBA have an important role to play in accelerating Africa’s economic growth, social development and economic integration of our nations," said Ordu.

Regional trade

"We hope that this support will go a long way in strengthening and enhancing UBA’s ability to impact its pan-African operations."

The trade finance initiative loan, totalling Sh7.5 billion ($100 million), will be used by UBA to advance trade credits to corporate customers across its pan-African network.

This will enable the bank to significantly ramp up its intra-African corporate banking operations and specifically the promotion of regional trade.

The remaining Sh3.7 billion ($50 million) will enable UBA to play a catalytic role in supporting corporate projects, infrastructure and small and medium enterprises financing across Africa.