UT Bank

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UT Bank (the “Project”) is focused on lending to the underserved SME sector in Ghana. Investment Services: IFC will offer UT Bank a suite of products:An equity investment up to $ 15mn (approximately GHS 22.5mn equivalent) in UT Bank Ltd. (the “Company or the “Bank”). IFC together with the Funds managed by IFC Asset Management Company (“IFC Funds”) will invest up to $15mn Ghana Cedi equivalent. This will be done through a private placement of new common equity shares. Alternatively IFC and the IFC Funds will invest up to $15mn Tier 1 qualifying compulsory convertible subordinated debt in UT Bank to ensure the Bank meets the regulatory requirements for Tier 1 capital as set out by the Bank of Ghana. The combined shareholding of IFC and the IFC Funds would not exceed 30% on successful conclusion of the transaction. A Senior Loan Facility of up to $5mn. The loan will be denominated in US$. Proposed term is 5 years with a 2 year capital moratorium.A $ 10mn Trade Finance Facility under the GTFP Delegated Program Authority. The Facility will guarantee trade transactions of up to 12 months. Advisory Services: UT Bank is committed towards developing a comprehensive partnership with IFC, and, under that same context, Bank management has also expressed interest in a parallel development of products from Advisory Services in order to strengthen both the operations and the corporate governance of the Bank.