CRDB Equity

The proposed project involves an equity investment in CRDB Bank in Tanzania. The bank plans to raise new equity to fund growth and comply with anticipated changes to the banking regulations relating to capital adequacy. CRDB is the largest commercial bank in Tanzania by asset size. Formerly known as the Cooperative and Rural Development Bank, the Bank was privatized in 1996 when DANIDA (Danish International Development Agency) took a 30% stake through the Danish Investment Fund (DIF) which remains the largest shareholder of CRDB with a 21.5% stake. IFC and the African Capitalization Fund managed by IFC’s subsidiary The Asset Management Company (“AMC”) plan to invest up to US$ 37.7 million by participating in the Bank’s forthcoming rights issue. IFC will invest up to US$15 million and AMC’s up to US$ 22.7m in the new issue.