East African Development Bank receives $40m from AfdB to finance projects

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East African Development Bank receives $40m from AfdB to finance projects

The East African Development Bank (EADB) has announced in a press release that it is to receive a Line of Credit (LoC) of USD 40 million from the African Development Bank (AfDB) to assist in the long-term financing of projects to aid the development of the East African region.

The AfDB Board of Directors approved the LoC on 15 October 2014. The Board noted the importance of the EADB in promoting the development of its member states - Kenya, Rwanda, Tanzania and Uganda - and in supporting regional integration within the East African Community.  Burundi has applied to become a member state.

The EADB invests in projects in various sectors including infrastructure, manufacturing, tourism, agriculture, transport and education and health, aimed at increasing the growth and prosperity of the East African region and its people.

The proposed LoC has a tenor of ten years. This term helps the EADB to fulfil its mandate by funding projects that need long-term funding, such as infrastructure work, schools, agricultural projects and manufacturing project, as long-term finance can be difficult to source in the East Africa region.

This will be the eighth LoC to EADB since its establishment, underlining the long-term strategic partnership between AfDB and EADB.

In 2013, the EADB received USD 24 million in additional equity investment from the AfDB to further strengthen EADB's capital and to enhance EADB's creditworthiness, resulting in an AfDB shareholding of 11%.The equity was supported by a USD 900,000 technical assistance support facility, currently under implementation.

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