Djibouti’s Caisse Nationale de Sécurité Sociale (CNSS) has invested over $5 million in the capital stock of the Eastern and Southern African Trade and Development Bank (TDB), thereby becoming its 18th institutional shareholder, and its first Class B investor from Djibouti, according to a release by Anne-Marie Iskandar
Senior Communications Officer
Corporate Affairs & Investor Relations and forwarded to metrobusinessnews.com this evening.
With the Republic of Djibouti being one of our founding Member States, it is with great pleasure that we now welcome CNSS to our community of institutional investors. This reflects the growing interest of investors seeking both commercial and SDG returns in Africa” said Admassu Tadesse, TDB Group Managing Director and President Emeritus.
Deka Ahmed Robleh, CNSS CEO said that “CNSS is delighted with this investment, which will enable it to grow its resources with a derisked asset. Via this participation, CNSS also looks forward to supporting a financial institution that promotes the economic, social and environmental development of Djibouti and of its region. We join other leading African pension funds and insurance companies in the capital of a bank which generates attractive returns on investment and positive economic impact.”
The Bank’s shareholding comprises 22 Member States from across COMESA, EAC, SADC, and IGAD, 2 non-regional members countries, and with CNSS on board, 18 institutional shareholders, which include pension funds, insurance companies, DFIs and special funds.
In 2013, TDB broke new grounds by introducing Class B shares, tailor-made for institutional investors to buy into its risk capital. More than a dozen pioneering African investors have since then inspired non-African investors to join in and reap the benefits of TDB’s attractive investment opportunities. In 2019, Denmark’s Investment Fund for Developing Countries (IFU) became the first European fund to acquire TDB’s Class B shares; in 2020, it doubled its equity investment to USD 40 million. So far, almost USD 225 million have been invested in TDB’s Class B shares.
Mary Kamari, TDB’s Executive for Corporate Affairs and Investor Relations added that: “via its Class B shares, TDB offers institutional investors exposure to a diversified and de-risked portfolio of projects, returns on investment which are competitive on a global scale, yearly dividends, significant development impact, as well as voting rights. Since this innovative share class was introduced, TDB’s shareholder base has doubled, and total assets and equity have quadrupled.”
With more than USD 600 billion in pension fund assets on the continent, there is much potential for institutions such as CNSS to capitalize on the continent’s economic growth, and diversify their portfolios, by investing wisely in institutions with a long-standing track record delivering triple bottom-line returns. As TDB continues to expand its geographic footprint, it looks forward to staying at the forefront of providing innovative vehicles for global and African capital to be transformed into impact in the region.
