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IFC Invests in South Africa’s Absa to Support Infrastructure across Sub-Saharan Africa
In Johannesburg:
Desmond Dodd
Phone: +27 11 731 3053
E-mail: ddodd@ifc.org
In Washington, D.C.:
Lotte Pang
Phone: (202) 458 0952
E-mail: lpang@ifc.org
Johannesburg, South Africa, September
3, 2009—IFC, a member of the World Bank Group, today announced that
it will invest $150 million in South Africa’s Absa Bank to provide funding
for infrastructure projects in Sub-Saharan Africa that face a financing
shortfall following the recent turmoil in global financial markets.
IFC’s financing will consist of a $30
million loan and $120 million standby credit facility. Absa will use the
funds to finance infrastructure projects that will have a strong impact
in promoting economic development in some of the poorest countries across
Sub-Saharan Africa.
“IFC’s investment will enable Absa
to continue lending to commercially viable infrastructure projects across
Africa that have stalled amid the sharp decline in hard currency financing
following the global financial crisis,” said Maria Ramos, Chief Executive
Officer of the Absa Bank Group. “Together with IFC, Absa’s financing
will help prevent cancellation or delay of infrastructure projects and
contribute to reducing poverty in many African countries.”
The financing is part of IFC’s multifaceted
response to alleviating the impact of the global financial crisis on private
sector development. IFC is providing similar financing to other financial
institutions to help ensure that viable, privately funded infrastructure
projects across Africa have access to funding to weather the financial
crisis.
“Good infrastructure, including roads,
ports, and transmission lines, is central to enabling trade, promoting
competitiveness, and fostering a vibrant private sector,” said Thierry
Tanoh, IFC Vice President for Sub-Saharan Africa. “IFC is committed to
working with partners such as Absa to develop infrastructure across Africa
and help alleviate the impact of the global financial crisis on Africa’s
poorest people and regions.”
IFC also is raising funds for a complementary
Infrastructure Crisis Facility, which will provide loans, equity, and Advisory
Services to stabilize existing, viable infrastructure projects facing temporary
liquidity problems due to limited private participation. IFC expects to
raise more than $10 billion for the facility to help bridge the gap in
available financing for viable, privately funded or public-private-partnership
infrastructure projects in emerging markets, including Africa.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $15
billion in fiscal 2009, helping channel capital into developing countries
during the financial crisis. For more information, visit www.ifc.org.
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