Markets & Finance

EA lender gets Sh3.56bn from African bank

BANK

The East African Development Bank (EADB) headquarters in Kampala. PHOTO | FILE

Regional lender East African Development Bank has received $40 million (Sh3.56 billion) from the African Development Bank to expand its long-term lending.

EADB said the funding will provide credit lines for infrastructure, manufacturing, tourism and health sectors which require long-term funding. It has been difficult to secure such financing in the local market.

“The proposed terms of the facility shall enable EADB to fulfil its mandate by funding projects that need long-term funding, such as infrastructure work, schools, agricultural projects and manufacturing, as long-term finance can be difficult to source in the East Africa region,” said EADB.

AfDB has been a regular lender to the regional bank having given EADB eight other loans. It is also a shareholder in the bank with an 11 per cent stake. Kenya, Tanzania, Uganda and Rwanda are the other main shareholders in the bank. Burundi is yet to become a member.

Shareholders have also pledged to pump in an additional $58 million by 2016, part of a pledge to contribute $90 million to the bank.