FILE IMAGE: IOL

CAPE TOWN - Absa Bank Limited, a subsidiary of the Barclays Africa Group (BAGL) has successfully concluded a five year $100 million special facility agreement with the China Development Bank (CDB).

According to a statement, this is the first major transaction between the two lenders that is geared towards providing funding to Small and Medium Enterprises (SME).

This will also benefit BAGL’s existing and prospective SME clients across the continent, which will be reached through its 12-country presence.

It is further said that the initial drawdown is based on Absa’s current funding needs, and may be increased in the future to assist with new funding opportunities within BAGL’s operations.

“We are glad to partner with CDB on this landmark transaction, which also echoes the 2017 BRICS theme, ‘Stronger Partnership for a Brighter Future’ ”, said Craig Bond, Head of  Partnerships, Joint Ventures and Strategic Alliances at Barclays Africa Group Limited.

China Development Bank, one of the biggest lenders in Africa, was founded in 1994 as a development financial institution under the leadership of China’s State Council.

The bank has assets of circa $2 trillion and is the world’s largest development finance institution. Furthermore, CDB is the largest Chinese bank for foreign investment and financing cooperation, long-term lending and bond issuance.

-BUSINESS REPORT ONLINE