eib credit line to unibank ghana limited press...

1 1 European Investment Bank Group

EIB credit line to uniBank Ghana Limited

Press Conference Accra, 5th May 2015


AGENDA

o EIB credit line to uniBank Ghana

o EIB and its lending activity in Ghana


EIB CREDIT LINE

TO UNIBANK

GHANA


EIB AND THE FINANCIAL SECTOR

Why the EIB supports the financial sector?

• Sustainable economic growth takes place when businesses develop and invest;

• Companies are crucial to identify new opportunities and create jobs, but they need long-

term resources

EIB firm commitment to ensure businesses are able to invest in new projects

How the EIB achieves this?

Long-term credit lines to local

banks

Microfinance funds / line of credit

Investment in private equity

funds


UNIBANK CREDIT LINE - THE CONTEXT

The EIB launched a EUR 80m facility to be allocated to local banks operating in Ghana

Outputs

Long term funding for:

1) Investments of SME; and

2) Capex of local banks

Outcomes

1) Improved access to long-term funding

for SME;

2) Improved intermediation’s capacity of local

banks

Impacts

1) Better competitiveness and contributing to jobs

creation;

2) Support to economic growth

Contribution to EU and Ghana priorities

1) Support to the private sector and contribution to poverty

reduction is in line with the EU country strategy, Cotonou

Agreement and the Africa-EU joint strategy;

2) Strengthening of the role of the private sector and of SMEs is in line with the Senchi Consensus

and the Ghana Shared Growth and Development Agenda II.


UNIBANK CREDIT LINE - THE TERMS

Borrower uniBank Ghana Limited

Purpose of the financing Financing of (i) investment projects by eligible final beneficiaries; and (ii) the Borrower capital

expenditure intended to develop its intermediation capacities (such as branch network, IT

systems, training, etc…).

Final beneficiaries Private sector companies with max. 250 employees established under the laws of the Republic

of Ghana and implementing projects in eligible sectors.

Eligible sectors Eligible sectors would encompass, for instance, agriculture, food industry, manufacturing,

transportation, construction, telecoms, pharmaceutical, and tourism and leisure.

Credit Amount Up to EUR 10m

Tenor Up to 8 years amortising with up to 2 years grace period

Currency EUR, USD

Interest rate Possibility to draw the facility at floating and fixed interest rate

Availability period 24 months from signature

Why a local bank?

• Best placed to finance the real economy given their local market knowledge.

Which local bank?

• Financially robust, innovative and showing capacity to use EIB funds in light of, for

instance, the strategy / vision / mission, loan portfolio mix, and risk management culture.

uniBank credit line: long-term resources and lower cost of funding and lending


EIB AND ITS

LENDING

ACTIVITY IN

GHANA


THE EIB – AT A GLANCE

• European Union's long-term lending institution established in 1958 under the Treaty of

Rome

• Owned by the 28 member states of the EU

• Largest multilateral lender and borrower in the world

• Raise funds on international capital markets

• Pass on favorable borrowing conditions to clients

• Headquartered in Luxembourg with 30 local offices and 2,500 staff

• Some 440 projects each year in over 160 countries: in 2014 about EUR 80b signatures


THE EIB – LENDING DISTRIBUTION BY SECTORS

(2014 signatures)


THE EIB – GEOGRAPHICAL LENDING DISTRIBUTION

(2014 signatures)


EIB IN AFRICA – KEY FACTS AND FIGURES

• More than 50 years of experience supporting EU development in Africa

• In 2014 about EUR 2.5m invested in Africa

• Investments are carried out through a variety of financial instruments (e.g.

senior/subordinated loans, equity / equity funds, guarantees, interest rate subsidies, and

technical assistance)

• Close collaboration with EU, other MDBs, and local regional organisations


EIB IN AFRICA - PRIORITIES AND OBJECTIVES

Overall Priority / Goal Projects with a strong development impact, promoting economic stability,

sustainable growth and employment, thus effectively reducing poverty.

Across all sectors of intervention Climate Action investments is important to

support adaptation initiatives and to mitigate the impact of climate change.

Key Focus Infrastructure:

• Projects with a regional focus,

with a pro-poor focus, and

which promote sustainable

economic growth.

Financial sector:

• Finance to SMEs and micro-enterprises

to stimulate job creation and private

sector growth and to support

development of local financial markets.

Sectors – first priority Energy, water and sanitation, transport and telecommunications

Sectors – second priority Agriculture and food security, healthcare

Other sectors Social housing, education, mineral resources and tourism


EIB IN GHANA – EUR 600 MILLION INVESTED SINCE 1976

• Akosombo dam and hydroelectric power plant

• Kpong power plant

• Takoradi Thermal Power

• West African Gas Pipeline: pipeline system to transport natural gas from Nigeria to Ghana

• Modernization and extension of an agro-industrial complex in Tema

• Construction of yoghurt and ice cream production plant

• Credit line to local banks for (i) on-lending to small and medium sized enterprises in Ghana operating in

the industrial, agricultural, mining, transport, tourism, health and education sectors; and (ii) funding the

capital expenditures of the intermediary banks.

Sample of operations


CONTINUING EIB PRESENCE IN GHANA

Firm EIB commitment to provide financial support to the public and private sectors in Ghana

EIB for Ghana

Energy

e.g. Ghana-Cote D’Ivoire Transmission Interconnection

Line Pwalugu multipurpose water

dam

Renewable energies

Transportation e.g. Road projects

Airports / Ports / Railways

Urban infrastructure

Financial Sector: e.g. Credit lines to local

banks for SMEs and improve intermediation

capacity

Water and Sanitation

e.g. Water and basic sanitation

investments and capacity building

15

Thank you!

15 European Investment Bank Group

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