PTA bank to establish US$1bn infrastructure fund

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The Eastern and Southern African Trade and Development Bank is expecting to raise US$300 million in a syndicated loan to fund its development projects by September 2014. The bank`s chief executive officer Admassu Tadesse said that they are looking to syndication as a way of leveraging their institution to facilitate more capital flow into their projects.

PTA bank, which is the lending party, is planning to have a US$1bn infrastructure fund and a US$500m trade-finance fund in operation by 2015.

Admassu Tadesse, the PTA Bank President commended the Government of Rwanda for ensuring that the necessary legal and regulatory frameworks are in place. He reiterated the need for the private sector to use domestic resources to strengthen the economy and also work with government to achieve various national goals.

According to Tadesse, the bank is targeting to raise US$200m in equity and debt for the infrastructure fund in the next 12 months. This comes in after the bank made clear its intensions to increase their loans in a bid to improve the region`s development projects especially infrastructure.

Established in 1985, PTA Bank is a multilateral, treaty-based financial institution with preferred creditor status, immunities.