from left Nana Otuo Acheampong (Non-Executive Director, CalBank), Faisal Masood (Corporate Banking Head, Nigeria and Ghana, Citi), Frank Adu Jnr. (Managing Director, CalBank), Olivia Kumordzi (Country Business Manager, Citi-Ghana), Dr. Kobina Quansah (Non-Executive Director, CalBank) and Philip Owiredu (Executive Director, CalBank)
Accra, Ghana - CalBank announces the closure of a USD108million term facility with the Overseas Private Investment Corporation (OPIC) and Citibank (Citi)for on-lending to Small and Medium Enterprises (SMEs) in Ghana.
This arrangement will enable CalBank to advance loans at relatively low interest rates to SMEs in Ghana with flexible repayment terms. In addition, beneficiaries of this short to medium term financing will have access to dollar denominated loans for business expansion and new equipment.
CalBank has received previous financing support from both OPIC and Citi. In 2014, CalBank was the first institution in Ghana to collaborate with Citi and OPIC to raise USD40 million to support SMEs. As part of their new agreement, OPIC will provide USD100m in financing while Citi will finance the remaining USD8 million. Citi served as Sole Lead Arranger and Facility Agent on the transaction.
The agreement was signed in Ghana at the CalBank head office by representatives of OPIC, Citi and CalBank.
At the signing ceremony, Mr. Frank Adu Jnr, Managing Director of CalBank remarked, “This agreement has been made possible because the parties involved believe in the vision of CalBank and the capability of the Bank in supporting the Small and Medium Enterprises over the years. As a Bank we shall continue to build the necessary partnerships with all our stakeholders even as we journey forward together. It is a ground-breaking transaction and we look forward to many more of such transactions going forward”.
Commenting on the agreement, Ms. Julia Robbins, OPIC Director of Structured Finance and Insurance, stated, “Our commitment to meeting the capital needs of SMEs requires collaboration with institutions like CalBank that have the capacity to channel resources to communities that are underserved and often difficult to reach. We are proud of this project, which will help entrepreneurs across Ghana build thriving businesses that give back to their families and communities.”
Mr. Akin Dawodu, Head of Citi Sub-Sahara Africa remarked: “We continue to support real-economy initiatives such as this landmark financing closed with CalBank, in partnership with OPIC. This financing will provide support to SMEs in Ghana and will further enhance their role as key catalysts of economic growth in the country.
FOR FURTHER INFORMATION:
Dzifa Amegashie (Head, Investor Relations) [email protected]
The Bank commenced operations as a local merchant bank in 1990 with the sole aim of providing truly differentiated world-class banking solutions. CalBank acquired a Universal Banking License in 2004 and in the same year undertook an initial public offer that was 4.5 times oversubscribed.
The operations of the Bank are backed by experienced managers in key functional areas with a combined experience of over 100 years in banking and finance. The CalBank team provides the required solutions to clients and is supported by a strong IT platform that has seen the Bank being recognized for its innovative products in ICT & Electronic Banking since 2007.
Operations and Subsidiaries
CalBank’s growth strategy is to focus on the growing Ghanaian corporate business sector. Since 2006, the Bank has developed its retail banking operations with specialized products and services to serve the needs of its growing retail clientele. The Bank currently has three wholly owned subsidiaries. CalAsset Management, Cal Trustees and CalBank Nominees Limited (“Cal Nominees”).
The Bank has embarked on an expansion program and will continue to expand its footprint by increasing the number of branches throughout the country. Internationally, CalBank benefits from strong correspondent banks all over the world. This enables us to handle all international transactions quickly and effectively.
More information available at: www.calbank.net /www.calbank.investoreports.com
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. Citi has operated a Representative Office in Ghana since 2003.
Additional information may be found at www.citigroup.com | Twitter: @Citi | YouTube: www.youtube.com/citi | Blog: http://new.citi.com | Facebook: www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi
Citibank N.A. Ghana: Lola Oyeka (Mrs)
Email: [email protected]