The Eastern and Southern African Trade and Development Bank Group (TDB Group) and the Saudi Export–Import Bank (Saudi EXIM Bank) have signed a memorandum of understanding (MoU) to enhance cooperation and explore co-financing and investment opportunities between the two banks, and bolster Saudi-African business.
The agreement establishes a framework for both parties to collaborate on trade and project finance transactions through several financing modalities. These include financing to beneficiaries in TDB member states for the importation of Saudi goods and services, supporting projects in the TDB region requiring Saudi exports, and co-financing, co-insurance, co-guarantees, and reinsurance to jointly support projects undertaken by companies from Saudi Arabia and TDB member states.
According to the statement, the MoU also provides for the exploration of opportunities pertaining to TDB’s high-return and impact-driven Class B or Class C shares, for Saudi investment companies and public authorities.
Further, the parties will promote the mutual exchange of information and expertise in the field of export credit policies and practices, sharing of best practices, and capacity building, particularly in the area of Islamic finance and private sector promotion in Africa.
Mr. Admassu Tadesse, TDB Group President Emeritus and Managing Director said that “TDB Group is pleased to embark upon this partnership with Saudi EXIM Bank. We look forward to working together to scale up collaboration on transformative projects and transactions through a wide array of financing structures which can advance economic and trade cooperation between Saudi Arabia and our region, and ultimately contribute to its sustainable development.”
“TDB Group leverages its strategic partnerships to broaden financing opportunities for its member states. Through the Agreement we signed today, TDB and Saudi EXIM bank are poised to develop joint initiatives for the Saudi and African private sector to work closer together. They will also have the chance to sensitize Saudi investment companies and public authorities on opportunities to invest in TDB, to unlock additional impact while making attractive returns,” Ms. Mary Kamari, Corporate Affairs and Investor Relations Executive of TDB Group.
