16 March 2021
Promoter – Financial Intermediary
Equity investment in a USD 80m fund promoting financial inclusion in Africa through hybrid capital investments in financial institutions in Africa.
The project has the ultimate objective to promote financial inclusion in Africa, thus supporting employment and the economic development of micro, small and medium-sized enterprises (MSMEs).
The fund will provide a range of hybrid capital instruments (i.e. subordinated debt, holding company loans, additional Tier 1 capital, etc.) to inclusive financial institutions comprising Monetary Financial Institutions (MFIs), banks, leasing companies, housing finance institutions etc. Such investments will provide essential capital to financial intermediaries that were affected by the COVID-19 pandemic and have a crucial role in the economic development of the continent. Hybrid capital products are rarely available in the target market but have high crowding-in potential as they allow the investees to attract additional senior debt and leverage the financing to reach more clients.
The fund will promote high standards of service delivery and require the investees to adhere to best practice in terms of client protection principles and social responsibility.
- Financial and insurance activities
Under Global Europe NDICI guarantee
The proposed operation is expected be covered by the comprehensive guarantee granted to the EIB under the Dedicated Investment
Proposed EIB finance (Approximate amount)
USD 20 million (EUR 20 million)
Total cost (Approximate amount)
USD 100 million (EUR 102 million)
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
The Bank will require the fund to ensure that all EIB-eligible investments are implemented in accordance with the Bank's Guide to Procurement.
Under appraisal - 7/10/2022