Media Contacts:
Trade and Development Bank Group
Anne-Marie Iskandar
Senior Communications Officer
Corporate Affairs and Investor Relations
Anne-Marie.Iskandar@tdbgroup.org
Nairobi, 15th October 2024 – The Eastern and Southern African Trade and Development Bank Group (TDB Group) is pleased to announce it has signed a loan agreement with the Japan Bank for International Cooperation (JBIC) to provide geothermal equipment for Menengai’s geothermal power plant. The agreement involves a loan from JBIC of up to USD 8.64 million and USD 5.76 million which is co-financed with Mizuho Bank, Ltd, bringing the total financed amount to USD14.4million. The loan from Mizuho Bank is covered by Nippon Export and Investment Insurance (NEXI).
TDB’s on-lending is to Globeleq Menengai Geothermal Limited, a leading independent power company in Africa developing the geothermal power plant, which is part-financed by TDB in collaboration with a consortium of lenders. The loan will be utilised for the development of a 35MW geothermal power plant in Menengai, Nakuru, Kenya. The project engages Japanese companies, with geothermal power generation equipment sourced from Japan. Toyota Tsusho Corporation, alongside its Kenyan subsidiary, CFAO Kenya Limited were awarded the engineering, procurement, and construction (EPC) contract, while Fuji Electric Co., Ltd, will manufacture the main machinery, including geothermal steam turbines and power generators.
With this loan, TDB aims to promote the transfer of advanced technology and expertise to the continent, driving economic development, job creation, and industrialization.
JBIC’s loan to TDB Group is part of the USD 350 million export credit line signed between TDB and JBIC in May 2019. This is a third line that JBIC has provided TDB, following the USD 80 Million loan signed with JBIC in August 2016 and co-financed by the Sumitomo Mitsui Banking Cooperation (SMBC) with NEXI providing insurance on the co-financed amount. The loan was utilized to finance the importation of equipment and machinery from Japan to TDB’s member states.
“We are pleased with our ongoing partnership with JBIC, Mizuho Bank and NEXI, and look forward to continuing to promote Japanese expertise and technology while supporting our Member States in pursuing their development agendas. This loan will contribute to expanding infrastructure, enhancing energy access, and driving economic development in our region in line with TDB Group’s mission to advance green energy solutions and adopt cutting-edge technologies across Africa.” remarked Wegoki Mugeni, TDB Group Chief Operating Officer, East Africa Region, Syndications and Co-financing.
TDB Group’s longstanding collaboration with Japanese institutions, including with JBIC, Mizuho Bank, NEXI, and Japanese Trading Houses, has been instrumental in bridging the financial gap for critical infrastructure projects. These partnerships have enabled trade and project financing in key sectors such as energy, infrastructure, and agribusiness, advancing sustainable development and fostering economic resilience in TDB’s member states.
About TDB
Established in 1985, the Eastern and Southern African Trade and Development Bank (TDB) is an investment-grade African regional development finance group, with the mandate to finance and foster trade, regional economic integration and sustainable development. With an asset base of USD 10 billion, TDB Group has 25 African member states, which alongside non-regional member countries and institutional investors from Africa, Europe and Asia, form TDB’s community of shareholders.
TDB Group counts several subsidiaries and strategic business units including Trade and Development Banking, TDB Group Asset Management (TAM), Trade and Development Fund (TDF), TDB Captive Insurance Company (TCI), the ESATAL fund management company and TDB Academy.
