Ghana - UT Bank Limited Trade Finance Line of Credit


Project Summary

Approval Date 22 May 2013
Signature Date 29 Jul 2013
Sovereign / Non-Sovereign Non Sovereign
Sector Finance
DAC Sector Code 24030
Commitment U.A 14,374,115.09
Status Completion

Project General Description

The present projet is relative to the UT Bank Ghana (UTB) Trade Finance Line of Credit (TF-LOC). This TF-LOC is a proposed USD 20 million facility to support UTB’s trade finance activities. UTB is a commercial bank with shares traded on the Ghana Stock Exchange, and the 10th largest in Ghana in terms of total assets. It was created in 2008 when UT Financial Services Limited, a non-bank financial institution, acquired a local Ghanaian commercial bank (BPI International). The major shareholders of UTB are UT holdings (40.4%), the Africa Capitalized Fund (10.1%), the International Finance Corporation (10.1%) and DEG (13.5%). The tenor of the TF-LOC is 3.5 years, and the proceeds are expected to support pre and post shipment loans, warehouse receipts, working capital and other short-term loans. Both large corporations and small and medium enterprises (SMEs) are expected to benefit from the facility. However, it is important to note that UTB defines SMEs rather uniquely and nontransparently, using a combination of size, structure and governance in a way that is difficult to verify. Based on that definition, only about 3% of the total value of its trade financing in 2012 went to SMEs.

Project Objectives

The Line of Credit aims to support UTB’s trade finance activities. It will also support pre and post shipment loans, warehouse receipts, working capital and other short-term loans.

Beneficiaries

The main beneficiaries of the project are large corporations and SMEs.

Participating Organization

Funding
African Development Bank

Information

IATI identifier 46002-P-GH-HAB-002
Last Update 28 Nov 2020

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Contact Details

Email private-sector@afdb.org

Geographic Location

Country Ghana