RST ECOBANK GROUP PORTFOLIO GUARANTEE

Promoter – Financial Intermediary

Ecobank Transnational Incorporated

Location

• Africa, Caribbean and Pacific

Description

The project consists of a risk-sharing transaction (RST) with the Ecobank Group covering a number of its subsidiaries in Africa and a total portfolio of short and medium-term loans to small and medium-sized enterprises (SMEs) of up to USD 110m. The operation will be implemented under the SME Guarantee Facility (Regional ACP) with the EIB and IFC as co-guarantors.

Objectives

The risk-sharing transaction will enable and encourage Ecobank to grow its SME loan portfolio and specifically to increase its local currency lending activities in this business segment. By contributing to improved access to finance for SMEs, the project will support job creation and promote more inclusive and balanced growth in the targeted countries.

Comments

Further detailed information can be accessed via the following link to the IFC website publication: http://ifcextapps.ifc.org/ifcext/spiwebsite1.nsf/651aeb16abd09c1f8525797d006976ba/6969e5a72f38fb3385257e07005cc60c?opendocument

Sector(s)

• Credit lines - Credit lines

Proposed EIB finance (Approximate amount)

USD 28 million (EUR 25 million)

Total cost (Approximate amount)

USD 106 million (EUR 95 million)

Environmental aspects

Under the terms of the risk-sharing transaction to be entered into, the selected banks will be requested to ensure compliance of their SME lending operations with a harmonised set of policy requirements, including EIB requirements on environmental issues.

Procurement

Under the terms of the risk-sharing transaction to be entered into, the selected banks will be requested to ensure compliance of their SME lending operations with a harmonised set of policy requirements, including EIB requirements on procurement.

Status

Signed - 21/03/2016