Accra, Ghana, 17th August 2018. PRESS RELEASE
CalBank Limited has signed a US$ 30 million senior loan Credit Agreement with PROPARCO, the French government development finance institution, to support the financing needs of Ghanaian private sector companies. At least one third of this funding is earmarked for renewable energy and energy efficiency projects in Ghana.
PROPARCO has been a decades-long partner to CalBank, supporting the bank with credit lines for over 20 years, and in 2012 scaled up the partnership with a US$ 7 million equity investment in the Bank. This Credit Agreement is Proparco’s 5th transaction with Calbank since it granted its first loan to the Bank in 1998.
International Finance Corporation (IFC): CalBank has also signed a 5-year agreement with IFC for US$ 50 million. The loan, which is designated to fund CalBank’s SME lending operations, will be devoted to women-owned businesses and energy efficiency projects. This is IFC’s 2nd transaction with CalBank in two years. Earlier in 2017 IFC and CalBank signed a loan agreement for US$ 15 million to fund SME activities. IFC was a founding shareholder of CalBank in 1990.
NORFUND, the Norwegian Investment Fund for Developing Countries, has also signed a US$ 10 million agreement with CalBank, whilst FINNFUND, the Finnish Development Finance Company has signed a US$ 15 million agreement with CalBank, both for 3 years, to finance CalBank’s lending to Ghanaian SME businesses.
Commenting on the transactions, MD of CalBank, Mr. Frank Adu Jnr, stated: “The signing of these agreements attests to the confidence PROPARCO, IFC, Norfund & Finnfund continue to repose in CalBank as a leading player in the Ghanaian banking sector. We have strengthened our ability to support the development of Ghanaian SME’s, particularly our diligent women entrepreneurs. CalBank has always been dedicated to protecting our environment as per the UN Sustainable Development Goals (SDG), particularly the goals of Affordable & Clean Energy; Industry, Innovation and Infrastructure and finally Climate Action. Consequently, CalBank will
commit a significant portion of this funding to support businesses engaging in renewable energy as infrastructure projects. These business segments are strategic to Ghana’s development. Accessing this capital for SME growth is a key part of CalBank’s planned strategic framework and our capital plan. This will enable us build on our creditable performance over the past years, strengthen our financial position and enhance value for our customers,
shareholders and partners”.
FOR FURTHER INFORMATION:
Philip Owiredu (Chief Financial Officer): +233 (0)302 680 264
Dzifa Amegashie (Head, Investor Relations): +233 (0)302 685 091
Notes to the Editors:
The Bank commenced operations as a local merchant bank in 1990 with the sole aim of providing truly differentiated world-class banking solutions. CalBank acquired a Universal Banking License in 2004 and in the same year undertook an initial public offer that was 4.5 times oversubscribed.
The operations of the Bank are backed by experienced managers in key functional areas with a combined experience of over 100 years in banking and finance. The CalBank team provides the required solutions to clients and is supported by a strong IT platform that has seen the Bank being recognized for its innovative products in ICT & Electronic Banking since 2007.
Operations and Subsidiaries
CalBank’s growth strategy is to focus on the growing Ghanaian corporate business sector. Since 2006, the Bank has developed its retail banking operations with specialized products and services to serve the needs of its growing retail clientele. The Bank currently has three wholly owned subsidiaries. CalBrokers is a locally incorporated securities broker and a licensed dealing member of the Ghana Stock Exchange. CalAsset Management is licensed as a fund manager and investment advisor by the Securities & Exchange Commission of Ghana. CAL Bank Nominees Limited (“CAL Nominees”) holds and administers assets as a custodian.
The Bank has embarked on an expansion program and will continue to expand its footprint by increasing the number of branches throughout the country. Internationally, CalBank benefits from strong correspondent banks all over the world. This enables us handle all international transactions quickly and effectively.
More information available at: www.calbank.net /www.calbank.investoreports.com