KAMPALA, Sept 29 (Reuters) – State-owned Uganda Development Bank plans to raise $500 million in debt from international capital markets to support a four-year plan to boost lending to the mining, energy and manufacturing sectors, a senior executive said on Monday.
UDB’s Treasury head Thaib Lubega told Reuters by telephone 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.
Sign up here.
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.
($1 = 3,485.0000 Ugandan shillings)