Uganda Development Bank plans to raise $500 million from international capital markets to fund a four-year growth strategy. The state-owned lender will use the money to expand lending across sectors such as mining, energy, and manufacturing. Treasury head Thaib Lubega confirmed the plan during a call with Reuters. He said the bank will raise the funds in tranches, with the first issuance of $100 million to $150 million expected next year.
The bank holds assets valued at about 1.82 trillion Ugandan shillings, or $520 million. To manage the fundraising process, it is working with Paris-based Global Sovereign Advisory. Lubega explained that the bank is reviewing options, including a green bond or a syndicated loan. He added that the choice of instrument will depend on market conditions in 2025.
Funds raised will support lending in more than just mining, energy, and manufacturing. Other targeted areas include agro-processing, tourism, infrastructure, education, health, and climate change initiatives. Moreover, the new capital will increase access to affordable long-term financing for Ugandan businesses. This plan directly supports the government’s broader economic agenda.
President Yoweri Museveni has stressed the importance of expanding Uganda Development Bank. His administration sees UDB as a driver of industrial growth and job creation. By boosting its capital base, the government hopes the bank can provide long-term financing that commercial banks often avoid.
The decision to seek international debt markets reflects Uganda’s confidence in attracting global investors. It also shows a shift toward innovative financing tools such as green bonds. These instruments link capital to sustainable projects. If successful, the plan could establish UDB as a regional model for blending national development needs with global capital.
For Uganda, this move is both economic and strategic. It places Uganda Development Bank at the center of national growth while connecting the country more directly to international finance. If the $500 million raise succeeds, it could transform how Uganda funds long-term projects and supports its industrial ambitions.
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