BOAD supports Compagnie Malienne pour le Développement des Textiles (CMDT) with a total of XOF32.92 billion
Lomé, 21 April 2016. Mr. Christian Adovelande, President of the West African Development Bank (BOAD), signed two loan agreements with Mr. Modibo Koné, CEO of Compagnie Malienne pour le Développement des Textiles (CMDT).
The first agreement relates to the partial financing of the expansion and modernization of CMDT’s ginning capacity. Under this agreement, BOAD will contribute to the financing exercise with a long-term loan of XOF15 billion, representing 36% of total project cost. The first phase of the project involves the construction of two new ginneries, with a unit capacity of 50,000 tons of cottonseed. The agreement also involves the modernization and expansion of three other existing ginning plants with a total capacity of 20,000 tons.
Under the second agreement, BOAD will scale up its support to CMDT in the partial
coverage of needs inherent in its operations during the 2015-2016 and 2016-2017 cotton seasons. The amount for this short-term operation is XOF13.5 billion.This loan facility adds to the XOF4.42 billion loan granted as part of a roundtable organized by the Mali evelopment Bank (BDM) to secure syndicated financing for the 2015-2016 cotton season in Mali, bringing to XOF17.92 billion the total short-term loans from BOAD.
BOAD has contributed to financing the cotton seasons in Mali for the fifth consecutive year.
Mr Christian Adovelande justified the volume of support CMDT receives from BOAD (total ling XOF32.92 billion), given the weight of cotton in the Malian economy, the second largest cotton producer in West Africa, after Burkina Faso. Cotton, the second most important export commodity after gold provides direct and indirect jobs to 3.3 million people, about 21% of Mali’s population. The cotton industry is also a major foreign exchange earner for the country and stimulates grain production.
For his part, Mr Modibo Koné commended the support of the sub-regional bank, adding that the partnership between BOAD and CMDT has existed for over 25 years.
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