The Eastern and Southern African Trade and Development Bank (PTA)

PTA Bank

The Eastern and Southern African Trade and Development Bank commonly known as PTA Bank is an African regional development financial institution established in 1985. The Bank’s mandate is to finance and foster trade, socio-economic development and regional economic integration across its Member States Although PTA Bank is an institution of the Common Market for Eastern and Southern Africa (COMESA), its membership is open to Non-COMESA States, non-regional countries as well as institutional shareholders. It offers a broad range of products and services, across both the private and public sectors, including debt, equity and quasi-equity as well as guarantees. PTA Bank’s investments cut across agriculture, trade, industry, infrastructure, energy and tourism, among others and are made on a commercial basis and sustainability principles.

Headquartered in Bujumbura (Burundi) with regional hubs in Nairobi (Kenya), Harare (Zimbabwe) and Ebene (Mauritius), PTA Bank’s current shareholders include: Burundi, Comoros, the Democratic Republic of Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Malawi, Mauritius, Rwanda, Seychelles, Somalia, Sudan, Uganda, Zambia and Zimbabwe. It also has the African Development Bank, the National Pensions Fund of Mauritius, Mauritian Eagle Insurance Company Ltd, and Rwanda Social Security Board as institutional shareholders while the People’s Republic of China and the Republic of Belarus are non-regional member countries.

The Bank is further expanding its shareholder base as it repositions itself as a more inclusive Regional Development Bank serving all countries in or adjacent to eastern and southern Africa – subject to membership – working with the East African Community, the Intergovernmental Authority on Development (IGAD), the Indian Ocean Commission (IOC) and the Southern African Development Community (SADC), in addition to its founding regional economic community, COMESA.

new membership drive is also underway with a view to signing on new prospective shareholders through the approval of an increase in the Bank’s authorized capital from US$ 2.0 billion to US$ 3.0 billion and the creation of 220,584 new Class B shares. The Bank provides the following core products and services:

Trade Finance PTA Bank aims to facilitate exports from the COMESA region through the provision of finance and trade related facilities that are tailored to meet the client’s needs. In addition to the provision of finance for both export and import trade flows, the Bank can provide access to export credit guarantees and is able to provide technical assistance to clients in formulating trade related projects. The range of products offered includes Import and Export Financing, Structured Commodity Finance, Guarantees and Bonds, Pre and Post Shipment Finance, Issuance of Letters of Credit, Receivable Backed and Asset Financing. Project and Infrastructure Finance Project and Infrastructure Finance is PTA Bank’s window for medium and long tern finance on commercial terms to growth sectors and infrastructure development. The range of products offered includes Long Term Project Finance, Leasing, Advisory and Appraisal, Syndications, Guarantees and Corporate Finance. Funds Management In 2013, PTA Bank established a Fund’s Management Department to support the implementation of the Bank’s strategy in pursuing growth and diversification, by spearheading new initiatives.

Two strategic fund initiatives have been launched to date:

  1. The Comesa Infrastructure Fund (CIF). The Comesa Infrastructure Fund (CIF) will be one of the first two funds to be established by PTA Bank as promoter following the formal transfer of the CIF by COMESA to PTA Bank. The CIF will be a Mauritius based fund to be managed by a fund management company set up as joint venture between PTA Bank and an independent regional private equity manager; and
  2. The Tri-Partite Trade Finance Facility (TTFF). . The Tripartite Trade Finance Fund will be a Mauritius-based open-ended investment fund which will undertake trade finance related investments. PTA Bank is in a unique position to act as a promoter of the TTFF owing to its leadership in the industry and strong network of partners. This innovation is designed to further accelerate regional development and integration and is specifically targeted at development-orientated global investors.
Total assets (2013): USD$ 2,908,724,449
Net profit/consolidated profit (2013): USD$54,870,480
Loan Commitments not disbursed (2013): USD$1,291,112,464

Key figures from the most recent report available:

Total assets: US$ 2,908,724,449
Consolidated profit: US$ 54,870,480
Total commitments: US$ 1,291,112,464