African Development Bank approves $10 million investment in Damana Guarantee Company Limited in East Africa

Abidjan, Côte d’Ivoire, November 21, 2023 -/African Media Agency (AMA)/- The Board of Directors of the African Development Bank Group has announced the signing of a loan to Damana Guaranty Company Limited to support access to capital markets. Approved a $10 million equity investment. Provides an alternative source of long-term financing for East Africa’s infrastructure and physical sectors.

Damana will be domiciled in Kenya as a limited liability company with a regional mission to provide credit guarantees for debt capital market products. The World Bank Group loan will enable Damana to issue guarantees against debt instruments. These local currency bonds are intended to boost the credit rating of the product in order to attract investment from pension funds, insurance companies and sovereign wealth funds to finance East Africa’s infrastructure and real sectors. There is.

The Bank, in collaboration with InfraCo Africa (part of the Private Infrastructure Development Group), Financial sector deepening Africa (external link)as well as local institutional investors and other partners, will support Damana’s operations.

Damana will support access to finance in key sectors such as transport, water, renewable energy and waste management, among others. Damana is committed to facilitating financing to support the expansion of green and sustainable financing to East Africa. Its credit guarantee activities should provide investors with the reassurance needed to support the allocation and intermediation of private institutional investor capital pools into infrastructure. ”

Nnena Nwabufo, East Africa Regional Director, African Development Bank We are pleased to continue supporting the operationalization of the project.” real sector.

Philippe Vallaf, CEO of PIDG, said: “The African Development Bank’s participation in PIDG is an important milestone for Damana Guarantee Company. With this additional capital, Damana will be able to leverage an untapped pool of institutional capital in the country to build new green infrastructure and provide credit to individuals and businesses. We will be able to mobilize more people into East Africa’s real economy, including people and other people. We are committed to fostering the development of Africa’s domestic capital markets with the aim of unlocking investment in profitable and climate-resilient projects. African Banks will help you achieve this goal .

Ahmed Atout, Deputy Director-General for Financial Sector Development at the African Development Bank, said: “African Development Bank’s Damana support will help leverage local currency real sector and infrastructure financing opportunities, as well as Africa’s deepening local corporate debt capital markets. “This demonstrates the catalytic role and potential of guarantee companies.” East Africa region. The investment in Damana follows the Bank’s priority of mobilizing institutional financing for infrastructure investment in East Africa. ”

The Bank’s partnership with Damana advances several strategic objectives, including stimulating local currency bond market financing across diverse infrastructure sectors and strengthening regional economic diversification and competitiveness. This intervention is also consistent with the Bank’s priorities of promoting regional integration, including through improving infrastructure development, promoting inclusive and sustainable industrialization, and fostering innovation.

This investment is in line with the African Development Bank’s strategic commitment to operate credit enhancement companies in selected regional member countries in collaboration with development partners, including PIDG.

Distributor Africa Media Agency (AMA) On behalf of the African Development Bank.

post African Development Bank approves $10 million investment in Damana Guarantee Company Limited in East Africa It first appeared african media agency.


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