AfDB leads $1.2bn financing syndication for Tanzania's Standard Gauge Railway project
The African Development Bank (AfDB) 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 project.
The agreement, signed during the African Investment Forum's 2024 Market Days in Rabat, Morocco, underscores the bank's role as the initial mandated lead global coordinator in mobilising financing for the project.
Tanzania's Ministry of Finance is seeking to raise funds from the international debt capital markets to finance the construction of a 411 km 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 neighbouring Rwanda, Burundi, the Democratic Republic of Congo and Uganda.
This will unlock economic potential by creating new mining and agricultural commodity corridors across Eastern and Central Africa.
AfDB senior director for syndications, cofinancing and the Africa Investment Forum Max Ndiaye signed the coordination letter alongside Deutsche Bank MD for Africa Myriam Ouazzani and Société Générale's head of development finance institution (DFI) solutions, development and structured export finance Randolph Fotso.
The financing will be arranged in two tranches, with the AfDB coordinating the second tranche with contributions from DFIs, export credit agencies, bilateral lenders and multilateral development banks.
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