Release date: 1 December 2023
Promoter – Financial Intermediary
BANK OF KIGALI PLCLocation
Description
The operation consists of a loan to Bank of Kigali for on-lending to eligible small and medium-sized enterprises (SMEs) and mid-caps with a focus on agriculture value chain projects.
Additionality and Impact
The operation concerns financing to Bank of Kigali for on-lending to individual farmers, SMEs, Mid-Caps and cooperatives across selected agricultural value chains. As such, it will tackle the long-standing credit constraints in the agri-food sector, by improving access to credit and tailoring loan terms to the specificities of agricultural cycles.
The operation will support Rwanda's Covid-19 recovery efforts through interventions that restore the livelihoods, supporting business continuity and associated employment. Through its thematic themes (climate & environment and gender) the operation will help reduce negative environmental externalities (e.g. through resource efficiency and adoption of technologies for pollution abatement in air, soil and water) and climate externalities (e.g. reduction of GHG emissions though sustainable and/or organic primary crop production, animal and aquaculture production) and increase resilience of local communities, as well as contribute to gender equality.
The credit line will provide longer maturity borrowing than typically available in the market thus enabling Bank of Kigali to increase its outreach to the private bioeconomy and other agriculture value chain actors. The EIB will provide input in the design of the project including its alignment with Team Europe initiatives in the agriculture sector and in the observance of the Bank's environmental and social standards.
Objectives
The aim is to enhance access to finance for the target beneficiaries.
Sector(s)
- Credit lines - Credit lines
Under Global Europe NDICI guarantee
Under EFSD+ Guarantee
Proposed EIB finance (Approximate amount)
EUR 50 million
Total cost (Approximate amount)
not applicable
Environmental aspects
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Procurement
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Status
Signed - 14/03/2024
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).