PTA Bank raises Sh12.75b syndicated loan

October 25, 2012
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Admassu Tadesse, the President of the PTA Bank, said the success of the debut syndicated facility was proof the Bank had come of age.Photo/ CORRESPONDENT

, NAIROBI, Kenya, Oct – The PTA Bank has broken new ground by successfully raising a Sh12.75 billion (US$150 million) loan from the international syndicated loan market.

The syndication was arranged by Commerzbank Aktiengesellschaft, FirstRand Bank Limited and Standard Chartered Bank.

The facility was well received resulting in a significant oversubscription from the initial launch amount of $100 million and, with 12 banks joining in the transaction, it demonstrates the strong support that PTA Bank enjoys internationally.

Proceeds of the facility will be used towards trade financing, project and infrastructure financing and general corporate purposes.

Speaking at the signing ceremony held in London, Admassu Tadesse, the President of the PTA Bank, said the success of the debut syndicated facility was proof the Bank had come of age.

“Our successful loan syndication is a very welcome sign of the growing capacity of global and international banks to embrace the emerging opportunities and improving credits in Africa’s fast growing economies” said Tadesse.

In November 2010, the bank scored another first by successfully issuing a $300 million Eurobond.

He added that the achievement is the result of the close collaboration between the Bank and its partners. “It is what happens when excellence is not limited to the confines of borders and old perspectives”, he said.

Based on recent successful issuances of sovereign bonds by Zambia, Angola and Senegal, the African continent is currently witnessing a tremendous revival in terms of appeal by international investors.

“Yields on bonds from our region have declined significantly to the point where they are now comparable with yields for several emerging European economies – not to mention some highly indebted high income European countries. There is no doubt that the decade long growth and improved economic governance and management has led to far healthier balance sheets than before, and ultimately unprecedented demand for African credit, both sovereign and corporate” Tadesse said.

In November 2010, the bank scored another first by successfully issuing a $300 million Eurobond.

The Bank has also issued local currency bonds in Tanzania, Kenya and Uganda, which were all well received by the markets, with the proceeds of the bonds being invested in the respective countries of issuance.

PTA Bank’s subscribed capital currently stands at $1.18 billion of which $944.33 million is callable.

The bank had an asset base in excess of $1.37 billion as of December 2011 and a membership of twenty shareholders, including the People’s Republic of China and the African Development Bank.

In October, 2012, the bank’s rating outlook was enhanced from stable to positive by Fitch Ratings, an outcome which closely follows the rating upgrade by Global Credit Rating in 2011.

PTA Bank’s current international credit ratings are Ba1 by Moody’s, BB- by Fitch and BB+ by Global Credit Rating.

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