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Uganda Development Bank is preparing to raise USD 500 million from international markets to support a four-year strategy aimed at increasing lending across key sectors including mining, energy, manufacturing, agro-processing, tourism, infrastructure, climate change, education, and health. The funds will be raised in tranches, with the first tranche of USD 100-150 million expected next year. UDB is working with Global Sovereign Advisory to choose the right debt instrument, considering options like green bonds or syndicated loans. The initiative reflects the government's focus on expanding UDB's capital and providing long-term, affordable financing to support Uganda's economic growth.
Uganda Development Bank (UDB), the state-owned financial institution, is planning to raise USD 500 million from international capital markets to fund a four-year strategy aimed at boosting lending across critical sectors of the economy. Thaib Lubega, UDB's Treasury head, said the bank intends to issue the funds in several tranches, with the first tranche of USD 100-150 million potentially coming as early as next year. Advertisement
UDB, which has total assets of about UGX 1.82 trillion (around USD 520 million), is working with Paris-based Global Sovereign Advisory to determine the most suitable debt instrument. The bank is considering several options, including a green bond or a syndicated loan, and will finalize the choice after assessing market conditions next year.
The capital raised is expected to support lending in sectors such as mining, energy, manufacturing, agro-processing, tourism, infrastructure, climate change initiatives, education, and health. Lubega emphasized that the funds will help UDB provide long-term, affordable financing to businesses that are driving growth in the East African economy.
The government, led by President Yoweri Museveni, has consistently focused on expanding UDB's capital base to strengthen the bank's capacity to provide cheaper financing for enterprises. This initiative complements earlier efforts to improve access to credit, especially for sectors that are crucial for industrial and economic development. UDB's plan aligns with broader objectives to foster sustainable growth and support businesses in meeting both social and infrastructure needs.
Source Reuters
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