Washington D.C., June 25, 2002
—The International Finance Corporation (IFC), the private sector lending arm of the World Bank Group, has agreed to provide an investment package of up to US$3.5 million to Exim Bank (Tanzania) Limited, based in Dar es Salaam, Tanzania.
IFC’s financing consists of a senior loan of up to $2.5 million and a subordinated loan of up to $1 million. The subordinated loan is to be signed at a later date.
Exim Bank (Tanzania) Limited is an innovative mid-size Tanzanian bank specializing in pre-export crop financing as well as trade and financial services to small and medium enterprises (SMEs). Exim plays an important role as an intermediary and is well positioned to grow.
Ms. Haydée Celaya, Director of IFC’s Sub-Saharan Africa Department, said, “Exim Bank (Tanzania) Limited is an innovative and well-managed financial institution. This partnership provides IFC with an opportunity to play a meaningful role in the country’s financial sector and, at the same time, support its agribusiness and SME sectors. This project will promote confidence among other banks in Tanzania and encourage them to increase their lending to the SME and agribusiness sectors.”
Mrs. S.M.J. Mwambenja, Managing Director of Exim Bank, said, “IFC’s participation in Exim Bank marks the beginning of a long-term relationship between two financial institutions that can contribute to the growth of the Tanzanian economy. Besides providing clients with long-term financing, Exim Bank will gain from IFC’s global expertise to train employees with the latest technology in international banking. In addition, Exim’s Bank’s proficiency in trade and agricultural financing will enable it to carry out due diligence for future IFC investments in Tanzania.”
IFC's mission is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses. Since its founding in 1956 through the close of the last fiscal year on June 30, 2001, IFC committed more than $31 billion of its own funds and arranged $20 billion in syndications for 2,636 companies in 140 developing countries. IFC’s committed portfolio at the end of FY01 was $14.3 billion.
