African Development Bank leads $1.2bn loan for Tanzania rail project
The $2.3 billion project will connect port of Dar es Salaam on the Indian Ocean to the port of Mwanza on Lake Victoria.
The African Development Bank has signed a coordination letter with Deutsche Bank and Société Générale to establish a syndication strategy to mobilise up to $1.2 billion for Tanzania's standard gauge railway (SGR) project.
The agreement was signed during the African Investment Forum's 2024 Market Days in Rabat, Morocco, says an official release from the bank.
"Tanzania's Ministry of Finance is seeking to raise funds from the international debt capital markets to finance the construction of a 411-kilometre railway line between Tabora and Kigoma. The $2.3 billion project will connect Tanzania's port of Dar es Salaam on the Indian Ocean to the port of Mwanza on Lake Victoria. From there, it will extend to neighboring Rwanda, Burundi, the Democratic Republic of Congo, and Uganda."
Max Ndiaye, Senior Director for Syndications, Cofinancing and the Africa Investment Forum, African Development Bank signed the co-ordination letter with Myriam Ouazzani, Managing Director, Africa, Deutsche Bank and Randolph Fotso, Head, DFI Solutions, Development and Structured Export Finance, Société Générale.
The financing will be arranged in two tranches, with the African Development Bank coordinating the second tranche with contributions from development finance institutions, export credit agencies, bilateral lenders and multilateral development banks, the release added.
