French Development Finance Institution, Proparco, has arranged a USD 30 Million senior debt facility to support dfcu Bank’s efforts to bridge the long-term financing gap for SMEs.
Proparco extended financing of USD 15m alongside USD 15m from FMO (the Dutch Development Bank) to dfcu Bank. The facility is primarily earmarked for financing of Small and Medium-size businesses in line with the bank’s SME-oriented strategy.
This facility was announced during a signature ceremony attended by Proparco’s Head of Financial Institutions in Africa, Mr. Emmanuel Haye, who stated that “Proparco is pleased to once again partner with dfcu Bank. This new credit line reflects the commitment of both institutions to support an inclusive and sustainable growth in Uganda.”
This Line of Credit builds on the long-term relationship between FMO, Proparco and dfcu Bank which spans two decades since 1999 when FMO’s maiden facility of EUR 2,000,000 was extended to dfcu Limited. Over the two decades, the partnership has extended more than USD 170m to dfcu Bank which is equivalent to Uganda Shillings 639 Billion. The facilities have been used to finance various SMEs in sectors including Education, Health, Manufacturing, Agriculture, Transport, Construction, Hotel and Tourism.
Proparco and dfcu Bank have had a long-term partnership that has seen Proparco extend a series of facilities to the bank since 2005. The current facility is the 5th transaction with the bank. This testifies to Proparco’s long term commitment to supporting SMEs in developing countries and to the deepening of the financial sector in Uganda.
The USD 30m fund will go towards financing SMEs in similar sectors with emphasis on businesses with foreign currency earnings potential, with the aim of boosting the country’s export earnings.
The operations of SMEs occupy an admirable position in the Uganda’s economic landscape. Despite being a key driver of economic growth, long term development finance remains a huge challenge. This line of credit will facilitate dfcu in providing a range of financing instruments to SMEs in order to enable them to continue to play their role in growth, innovation and employment. This facility will further strengthen the Bank’s capacity to grow its business and subsequently consolidate our position as a leading provider of long term development finance, said Mathias Katamba, Incoming Chief Executive Officer, dfcu Bank.
FMO is proud to partner with dfcu Bank, a bank that supports productive SMEs in Uganda. Supporting local enterprises through trusted partners like dfcu Bank is core to FMO’s mission, said Linda Broekhuizen, Chief Investment Officer of FMO.
Through the partnership, dfcu Bank has benefitted from Technical Assistance in Board Training on Corporate Governance, Mentorship Programs for its Customers, Staff Development Training on Credit Assessment and Support on Environmental and Social Governance.
Media Contact:
Proparco: Romain Esperon – Communications Officer, +33 1 53 44 38 94, presse@proparco.fr
FMO: Paul Hartogsveld – Senior Communications Officer (PR), +31 70 314 9928 / M: +31 6 11589127, p.hartogsveld@fmo.nl
dfcu: Rukh-Shana Namuyimba – Communications & Events Manager, +256 772 760 823, rnamuyimba@dfcugroup.com
About Proparco
Proparco is a subsidiary of Agence Française de Développement (AFD) focused on private sector development. It has been promoting sustainable economic, social and environmental development practices for the past 40 years. Proparco provides funding and support to both businesses and financial institutions across Africa, Asia, Latin America and the Middle-East. It seeks to partner in projects in key development sectors – infrastructure (with a specific focus on renewable energies), agribusiness, financial institutions, healthcare and education, etc. – and to boost the contribution of the private sector to achieving the sustainable development goals adopted by the international community in 2015. As a means to this end, Proparco finances businesses that are instrumental in creating decent jobs that pay decent wages, in supplying essential goods and services and in battling climate change.
For more information, go to: www.proparco.fr/en and @Proparco
About FMO
FMO is the Dutch development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a more than 45-year proven track-record of empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With a committed portfolio of EUR 9.2 billion spanning over 82 countries, FMO is one of the larger bilateral private sector developments banks globally. For more information: please visit www.fmo.nl
About dfcu
dfcu was established in 1964 as a development finance institution. Over the years dfcu has been associated with many success stories in Uganda’s economy in various sectors including agribusiness, communication, education, health, manufacturing, tourism, real estate, mining, construction, transport, trade and commerce, among others.
Key Milestones
1999: Bought Uganda Leasing Company, renamed it dfcu Leasing.
2000: Bought Global Trust Bank, renamed it dfcu Bank, and started commercial banking.
2004: dfcu Limited was listed on the Uganda Securities Exchange.
2008: Merged its two businesses (Development Finance and dfcu Bank) to create a “one-stop shop “under dfcu Bank.
2013: Realignment of shareholders bringing on board a strategic partner – Rabobank, with significant experience in
agribusiness.
2014: Consolidated business operations into our Head Office – dfcu Towers.
2014: dfcu Bank acquired some assets and took over some liabilities of Global Trust Bank (In Liquidation_
2016: Aligned shareholding with Rabobank, Norfund and FMO combining to form Arise which is committed to strengthening and
developing effective, inclusive financial systems in Africa with a long-term perspective.
2017: Acquisition of certain assets and assumptions of some liabilities of Crane Bank Limited (In Receivership).
For more information visit www.dfcugroup.com
dfcu Whistleblowing Channels: Email address: dfcu@tip-offs.com; Whistleblowing Toll Free Number: 0800 100 255; Anonymous Tip-Offs Link
