Djibouti’s CNSS Makes Third Equity Investment in Trade & Development Bank

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Djibouti’s Caisse Nationale de Securité Sociale (CNSS) has recently injected an additional USD 5.4 million into the capital stock of the Eastern and Southern African Trade and Development Bank (TDB), marking its third investment in the Bank since 2020. Cumulatively, CNSS has committed over USD 15 million to Class B shares, witnessing a notable 26% appreciation in the value of its shares since its initial investment.

In 2013, TDB introduced its Class B shares to mobilize capital from institutional investors, resulting in a diverse shareholder base comprising over 20 institutional stakeholders. These investors include pension funds, a sovereign wealth fund, insurance companies, and development finance institutions spanning Africa, Europe, and Asia.

The allure of Class B shares has resonated strongly with institutional investors, with total investments reaching USD 284 million to date. This growth trajectory reflects TDB’s expanding assets and its impactful operations across member states.

Admassu Tadesse, TDB Group President and Managing Director, emphasized the unique value proposition offered by investment in TDB’s risk capital, underlining the bank’s ability to deliver attractive returns while driving positive social and economic impact in member states, including Djibouti.

Deka Ahmed Robleh, CEO of CNSS, expressed satisfaction with TDB’s performance and alignment with their investment objectives. The decision to increase its stake in TDB reflects not only financial considerations but also a commitment to supporting an institution that resonates with its values and Environmental, Social, and Governance (ESG) principles.

Mary Kamari, TDB Group Corporate Affairs and Investor Relations Executive highlighted TDB’s investment-grade ratings, significant asset value growth, and robust return on equity, factors that have instilled confidence among institutional investors like CNSS. TDB’s track record and commitment to investor needs make it an attractive investment destination for institutions seeking sustainable returns aligned with their fiduciary responsibilities.