The state-owned Uganda Development Bank intends to raise $500 million from international capital markets to underpin a four-year strategy aimed at enhancing lending to the mining, energy, and manufacturing sectors, a senior executive announced on Monday.
UDB’s Treasury head Thaib Lubega said that the lender intends to raise the funds in tranches, with the first issuance of $100 million to $150 million potentially coming as early as next year.
”What we’re doing now is making sure that all our material sources come from food, or leftovers from agriculture or the food industry.
The bank, which holds assets worth about 1.82 trillion Ugandan shillings ($520 million), is working with Paris-based Global Sovereign Advisory to determine the most suitable debt instrument. It is considering options such as a green bond or a syndicated loan, Lubega said.
“As we observe the market into next year, we’ll be able to decide on the instrument we’ll issue,” he said.
The funds are expected to support lending in sectors including mining, energy, manufacturing, agro-processing, tourism, infrastructure, climate change, education, and health, he added.
President Yoweri Museveni has said his government is committed to expanding UDB’s capital base to improve access to cheap, long-term financing for businesses in the East African economy.