GuarantCo provided CRDB Bank, the largest bank in Tanzania, with a TZS 116 billion (USD 50 million), 5-year portfolio guarantee to enable the bank to grow its infrastructure loan book.
CRDB Bank Plc
TZS 116 billion (USD 50 million)
Total transaction amount
TZS 253 billion (USD 109 million)
CRDB Bank is a leading bank with a focus on the infrastructure sector. This portfolio guarantee will create a risk-sharing partnership which will allow the bank to invest more in Tanzania’s infrastructure sector without breaching regulatory and capital limits set by the Bank of Tanzania.
GuarantCo’s involvement does not stop with this transaction. It will also enable CRDB Bank to grow its loan portfolio and signify the beginning of a capacity building partnership whilst providing an opportunity to support the bank’s gender strategy.
This important strategic partnership with CRDB, and GuarantCo’s first transaction in Tanzania, will allow GuarantCo to explore further innovative transaction structures to finance infrastructure projects in Tanzania in the longer term.
Infrastructure development is undoubtedly critical and a priority for Tanzania’s long-term economic growth and competitiveness as it impacts economic activities by increasing productivity, facilitating trade and promoting innovation. The sector also provides the foundation upon which other sectors such as agriculture, manufacturing and services can grow. Mobilisation of non-traditional sources of finance, including those from the private sector, are necessary in Tanzania which has a population of 54 million people.
PIDG Technical Assistance will be supporting a project finance capacity building workshop for financial institutions in Tanzania, together with CRDB Bank, aimed at building the capacity of local developers and financiers to create and deliver more infrastructure projects.