Deutsche Bank finances three major road upgrades in Zanzibar
Deutsche Bank (XETRA: DBKGn.DB / NYSE: DB) today announced the close of a 263 million euro lending facility to the Ministry of Finance in the United Republic of Tanzania, which will support the rehabilitation and upgrade of three major roads in Zanzibar.
Deutsche Bank acted as a Coordinating Mandated Lead Arranger, Agent and Lender on the two-tranche loan. The first is a 242 million euro facility provided by both Deutsche Bank and UK Export Finance (UKEF), which also includes a UKEF buyer credit loan guarantee. The second is a 21 million euro commercial facility by Deutsche Bank as a sole lender.
Covering a total distance of 103 kilometers, the financing is to rehabilitate and upgrade the Tunguu-Makunduchi (48km), Fumba-Kisauni (12km), and Moani-Chake and Pemba Airport Spur (43.5km) roads in Zanzibar. The upgrade will expand the three roads to four lanes each, while also installing street lighting and additional paving. It is designed to help increase road safety, reduce congestion, and stimulate economic development via increased access to markets and social services. It will also improve connectivity in Zanzibar and enhance tourism, which is the major revenue driver for the local economy.
Expected to take three years to complete, the construction work will be done through strategic joint ventures, with Propav Infraestructuras leading and collaborating with Mecco Ltd.
Speaking about UKEF’s support for infrastructure upgrades in Zanzibar, Nigel Huddleston, the UK’s Minister for International Trade, said: “Good local infrastructure is key to encouraging businesses to invest and work with local suppliers. This deal will support crucial development across Zanzibar, unlock new opportunities for UK companies in Africa, and grow sectors that will create jobs and boost the economy across our nations.”
Deutsche Bank Global Head of Structured Trade Export Finance Werner Schmidt said: “Deutsche Bank has been a longstanding partner for our clients in Africa, and we are proud to support the Government of Tanzania and Zanzibar on their infrastructure projects. We remain committed to supporting projects that will generate a positive impact for the people and that helps support economic growth and development.”
Kees Hoving, Co-Chief Executive Officer for Middle East and Africa (MEA), said: “Deutsche Bank continues to grow its African business and this important transaction in Tanzania is yet another key milestone in our ambition to support ‘Building a better Africa’.”
Since opening a representative office in Cairo in 1959, Deutsche Bank has strongly contributed to financing the development of infrastructure across the African continent. The bank uses its expertise in structuring and arranging financing to help countries access the traditional global capital markets and other alternative pools of liquidity.
Deutsche Bank has well over 200 staff providing banking services to our clients on the African continent. We have teams situated in our branch in Johannesburg, South Africa and representative offices in Lagos, Nigeria and Cairo, Egypt. In addition, there are a number of coverage bankers and product specialists based in our regional hub for the Middle East & Africa, Dubai and other global hubs including Frankfurt, London and Geneva (amongst others), that provide banking services to clients and individuals domiciled on the continent.
In recognition of the bank’s role in supporting the African economy, Deutsche Bank received “Africa's Best Bank for Financing” Award by Euromoney Magazine during its 2023 Awards for Excellence cycle.
Last year, Deutsche Bank has been named Best Foreign Investment Bank in Angola, Gabon, Ghana and Rwanda at EMEA Finance Magazine’s African Banking Awards in its 2022 cycle. Prior to that, Deutsche Bank was named Best Foreign Investment Bank in Africa for three years in a row for the years 2021, 2020 and 2019 by the same publication.
Disclaimers and disclosures
Deutsche Bank AG, Dubai (DIFC) Branch is a branch of Deutsche Bank AG located and registered in the Dubai International Financial Centre (DIFC) in the Emirate of Dubai, United Arab Emirates, with registered no. 00062. Principal place of business in the DIFC: Dubai International Financial Centre, Gate Village, Building 5, PO Box 504902, Dubai, United Arab Emirates. Deutsche Bank AG, Dubai (DIFC) Branch is regulated by the Dubai Financial Services Authority (“DFSA”) and is authorized to provide Financial Services to Professional Clients only, as defined by the DFSA.
This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in the light of new information or future events.
By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion of our assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of our strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks referenced in our filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in our SEC Form 20-F of 11 March 2022 under the heading “Risk Factors”. Copies of this document are readily available upon request or can be downloaded from www.db.com/ir.
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Deutsche Bank (XETRA: DBKGn.DB / NYSE: DB) today announced the close of a 263 million euro lending facility to the Ministry of Finance in the United Republic of Tanzania, which will support the rehabilitation and upgrade of three major roads in Zanzibar.
Deutsche Bank acted as a Coordinating Mandated Lead Arranger, Agent and Lender on the two-tranche loan. The first is a 242 million euro facility provided by both Deutsche Bank and UK Export Finance (UKEF), which also includes a UKEF buyer credit loan guarantee. The second is a 21 million euro commercial facility by Deutsche Bank as a sole lender.
Covering a total distance of 103 kilometers, the financing is to rehabilitate and upgrade the Tunguu-Makunduchi (48km), Fumba-Kisauni (12km), and Moani-Chake and Pemba Airport Spur (43.5km) roads in Zanzibar. The upgrade will expand the three roads to four lanes each, while also installing street lighting and additional paving. It is designed to help increase road safety, reduce congestion, and stimulate economic development via increased access to markets and social services. It will also improve connectivity in Zanzibar and enhance tourism, which is the major revenue driver for the local economy.
Expected to take three years to complete, the construction work will be done through strategic joint ventures, with Propav Infraestructuras leading and collaborating with Mecco Ltd.
Speaking about UKEF’s support for infrastructure upgrades in Zanzibar, Nigel Huddleston, the UK’s Minister for International Trade, said: “Good local infrastructure is key to encouraging businesses to invest and work with local suppliers. This deal will support crucial development across Zanzibar, unlock new opportunities for UK companies in Africa, and grow sectors that will create jobs and boost the economy across our nations.”
Deutsche Bank Global Head of Structured Trade Export Finance Werner Schmidt said: “Deutsche Bank has been a longstanding partner for our clients in Africa, and we are proud to support the Government of Tanzania and Zanzibar on their infrastructure projects. We remain committed to supporting projects that will generate a positive impact for the people and that helps support economic growth and development.”
Kees Hoving, Co-Chief Executive Officer for Middle East and Africa (MEA), said: “Deutsche Bank continues to grow its African business and this important transaction in Tanzania is yet another key milestone in our ambition to support ‘Building a better Africa’.”
For further information, please contact:
Deutsche Bank AG
Press & Media Relations
Mohanad Nahas
Phone: +971 (0) 4 3611 754
E-Mail: mohanad.nahas@db.com
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About Deutsche Bank in Africa
Since opening a representative office in Cairo in 1959, Deutsche Bank has strongly contributed to financing the development of infrastructure across the African continent. The bank uses its expertise in structuring and arranging financing to help countries access the traditional global capital markets and other alternative pools of liquidity.
Deutsche Bank has well over 200 staff providing banking services to our clients on the African continent. We have teams situated in our branch in Johannesburg, South Africa and representative offices in Lagos, Nigeria and Cairo, Egypt. In addition, there are a number of coverage bankers and product specialists based in our regional hub for the Middle East & Africa, Dubai and other global hubs including Frankfurt, London and Geneva (amongst others), that provide banking services to clients and individuals domiciled on the continent.
In recognition of the bank’s role in supporting the African economy, Deutsche Bank received “Africa's Best Bank for Financing” Award by Euromoney Magazine during its 2023 Awards for Excellence cycle.
Last year, Deutsche Bank has been named Best Foreign Investment Bank in Angola, Gabon, Ghana and Rwanda at EMEA Finance Magazine’s African Banking Awards in its 2022 cycle. Prior to that, Deutsche Bank was named Best Foreign Investment Bank in Africa for three years in a row for the years 2021, 2020 and 2019 by the same publication.
Disclaimers and disclosures
Deutsche Bank AG, Dubai (DIFC) Branch is a branch of Deutsche Bank AG located and registered in the Dubai International Financial Centre (DIFC) in the Emirate of Dubai, United Arab Emirates, with registered no. 00062. Principal place of business in the DIFC: Dubai International Financial Centre, Gate Village, Building 5, PO Box 504902, Dubai, United Arab Emirates. Deutsche Bank AG, Dubai (DIFC) Branch is regulated by the Dubai Financial Services Authority (“DFSA”) and is authorized to provide Financial Services to Professional Clients only, as defined by the DFSA.
This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in the light of new information or future events.
By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion of our assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of our strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks referenced in our filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in our SEC Form 20-F of 11 March 2022 under the heading “Risk Factors”. Copies of this document are readily available upon request or can be downloaded from www.db.com/ir.