Absa Bank, a subsidiary of the Barclays Africa Group (BAGL), has concluded a 5-year $100m special facility agreement with the China Development Bank (CDB). 

This is the first major transaction between the two lenders and 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.

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.

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 $2trn, and is the world’s largest development finance institution. 

Furthermore, CDB is the largest Chinese bank for foreign investment and financing co-operation, long-term lending and bond issuance.

“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: Partnerships, Joint Ventures and Strategic Alliances at Barclays Africa Group.