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News > Investors

Standard Chartered Bank arranges $1.46bn to fund SGR

Africa Global Funds
Feb. 17, 2020, 2:12 p.m.
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Standard Chartered Tanzania has signed a facility agreement with the Government of Tanzania Ministry of Finance to fund the construction of the Standard Gauge Railway (SGR) project from Dar es Salaam to Makutupora.

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Standard Chartered Tanzania has signed a facility agreement with the Government of Tanzania Ministry of Finance to fund the construction of the Standard Gauge Railway (SGR) project from Dar es Salaam to Makutupora.

Standard Chartered Tanzania acted as Global Co-ordinator, Bookrunner and Mandated Lead Arranger on the facility agreement that is the largest foreign currency financing raised by the Ministry of Finance to date.

The biggest component of financing comes from the Export Credit Agency Covered Facility(‘s) from the Export Credit Agencies of Denmark and Sweden.    

Sanjay Rughani, CEO, Standard Chartered Tanzania, said: “We are delighted to have reached this milestone in Tanzania to fund the SGR project that will deliver massive benefits to Tanzania and support the government’s 2025 vision of making Tanzania an industrialised country.”

The SGR project is one of the country’s biggest projects connecting Dodoma to Dar es Salaam via Morogoro and Makutupora.

Once complete, the SGR Rail project will provide a safe and reliable means for efficiently transporting people and cargo to and from the existing Dar es Salaam Port.  

According to the Tanzania Railways Corporation, it is expected that the railway will address current congestion challenges and decrease freight service charges by 40%, as the railway will be able to haul up to 10,000 tons of freight, equivalent to 500 lorries, per trip.

It will also connect Tanzania to Burundi, Rwanda and The Democratic Republic of Congo, DRC, thereby playing a key role in enhancing regional trade.

The Minister of Finance and Planning, Hon. Dr. Philip Mpango, said:“I am very delighted to sign off on this deal on behalf of the Government of Tanzania and its people. With the help of Standard Chartered and our partners, the project financing will further increase direct employment in Tanzania, and more importantly, enable our local communities the thrive as they will be able to gain access to wider social services such as food and housing.”

“These two nations, Sweden and Denmark, have shown us their true friendship not only in words but also in action. Please convey our country’s sincere appreciation to the Export Credit Agencies and lenders in your countries that have supported this signature project. As a country we shall honour our commitments as we have always done,” Hon. Dr. Mpango said.

According to Rughani, Standard Chartered Bank will continue to leverage its unique network reach, and the credibility it has built over time, to further position Tanzania as the go-to destination for investments.

Sunil Kaushal, Regional CEO, Standard Chartered Africa and the Middle East, said: “There is considerable appetite from the global investment community into Africa, with 80% of our top Corporate & Institutional clients using our Africa and Middle East network. For Standard Chartered, Africa remains a priority for our business and clients, and we are proud to be able to use our expertise to support the Government of Tanzania with the finance needed for the SGR project.”





 

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