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1 1 European Investment Bank Group
EIB credit line to uniBank Ghana Limited
Press Conference Accra, 5th May 2015
2 2 European Investment Bank Group
AGENDA
o EIB credit line to uniBank Ghana
o EIB and its lending activity in Ghana
4 4 European Investment Bank Group
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
5 5 European Investment Bank Group
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.
6 6 European Investment Bank Group
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
8 8 European Investment Bank Group
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
11 11 European Investment Bank Group
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
12 12 European Investment Bank Group
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
13 13 European Investment Bank Group
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
14 14 European Investment Bank Group
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