Business

Cameroon – Finance: Funding for infrastructure projects explodes UBA Cameroon’s customer loans in 2016

Funding for infrastructure projects explodes UBA Cameroon's customer loans in 2016
Written by Deckson N.

With customer deposits of Naira 116.6 billion (CFAF 221.8 billion) as of December 31, 2016, the Cameroon subsidiary of the Nigerian banking group UBA further untied the stock of its stock in favor of its clientele. Indeed, according to the financial statements of the group that have just been made public, UBA Cameroon granted its customers a credit volume of 109.35 billion Cfa francs (57.48 billion naira) during the year 2016.

This indicator is up sharply from the year 2015, when UBA Cameroon financed the local economy with loans totaling 37.56 billion naira, or 71.44 billion francs Cfa. According to sources close to this banking institution, this substantial increase (more than 30 billion CFA francs) in the volume of loans granted by UBA Cameroon last year is explained by the large financing made available by the bank for Realization or development of major infrastructure projects in the country.

This is the case of the long-term loan (7 years with a grace period of 6 months) of CFAF 24.5 billion granted to the Cameroonian government to finance its counterpart in the construction of the 60,000-seat stadium of Olembé, in Yaoundé, as a prelude to the organization of the AFCON 2019 in Cameroon. In addition, a loan guarantee of CFAF 46.5 billion was granted to the Turkish company Yenigun to build a 50,000-seat football stadium in Japoma, in the suburb of Douala, the economic capital from the country. At the same time, UBA Cameroon co-arranged with Ecobank’s local subsidiary, a syndicated loan totaling 47 billion CFA francs, in favor of Dangote Cement Cameroon, which delighted Lafarge-Holcim with leadership in the local cement market last year.

Still in 2016, the Cameroonian subsidiary of the Nigerian group UBA has given breath to the Gabonese public treasury, out of liquidity, due to the decline in world crude oil prices, thanks to a medium-term loan of 15 billion CFA francs , we learn.

Over the period under review, UBA Cameroon invested 38.13 billion naira (72.5 billion CFA francs) in government securities, compared with 26.66 billion naira in 2015, or nearly 50.7 billion CFA francs. This strong growth can be explained by the launch last year of a new 150 billion CFA franc bond by the State of Cameroon and the increase in the demand for financing on the securities Public market of the BEAC on which UBA Cameroon is Specialist in value of the Treasury (SVT) for more than one of its member states.

Facebook Comments

About the author

Deckson N.

Please wait...

Subscribe to our site and be Informed!

Want to be notified when our article is published? Enter your email address and name below to be the first to know.