CalBank Ghana has announced the closure of a USD108million term facility with the Overseas Private Investment Corporation (OPIC) and Citibank to provide on-lending to Small and Medium Enterprises (SMEs) in Ghana.
The deal will allow CalBank to support Ghana’s SME sector with low interests on loans, with flexible repayment terms. It will also enable beneficiaries to have access to dollar denominated loans for business expansion and equipment acquisition.
Managing Director of CalBank Frank Adu Jnr noted “this agreement has been made possible because the parties involved believe in the vision of CalBank and the capability of the bank in supporting the small and medium enterprises over the years.”
“As a bank, we shall continue to build the necessary partnerships with all our stakeholders even as we journey forward together.” he said
He also added that CalBank had received previous financing support from both OPIC and Citi Bank to support other sectors of the economy and its operations. Citi Bank will provide $8 million whilst the OPIC provides $100 million in financing.
At the signing ceremony, Mr. Frank Adu Jnr, Managing Director of CalBank remarked, “This agreement has been made possible because the parties involved believe in the vision of CalBank and the capability of the Bank in supporting the Small and Medium Enterprises over the years. As a Bank we shall continue to build the necessary partnerships with all our stakeholders even as we journey forward together. It is a ground-breaking transaction and we look forward to many more of such transactions going forward”.
Commenting on the agreement, Ms. Julia Robbins, OPIC Director of Structured Finance and Insurance, stated, “Our commitment to meeting the capital needs of SMEs requires collaboration with institutions like CalBank that have the capacity to channel resources to communities that are underserved and often difficult to reach. We are proud of this project, which will help entrepreneurs across Ghana build thriving businesses that give back to their families and communities.”
Mr. Akin Dawodu, Head of Citi Sub-Sahara Africa remarked: “We continue to support real-economy initiatives such as this landmark financing closed with CalBank, in partnership with OPIC. This financing will provide support to SMEs in Ghana and will further enhance their role as key catalysts of economic growth in the country.
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