Release date: 13 August 2021
Promoter – Financial Intermediary
ECOBANK TRANSNATIONAL INCLocation
Description
This facility provides a partial portfolio guarantee to the financial intermediary Ecobank Transnational Incorporated (ETI) in order to support financing eligible small and medium-sized investments undertaken by small and medium-sized enterprises (SMEs) in several sub-Saharan countries, thereby contributing to economic resilience, employment-generating activities and alleviating the economic burden due to the COVID-19 outbreak in the region.
Additionality and Impact
This risk sharing facility (RSF) provides a partial portfolio guarantee to the financial intermediary Ecobank Transnational Incorporated (ETI). ETI - through its lending subsidiaries - would support financing for eligible small- and medium-sized investments undertaken by SMEs in several Sub-Saharan Countries. This facility therefore contributes to economic resilience, employment generating activities and alleviating the economic burden due to the COVID-19 outbreak in the region.
The operation supports sustainable growth and jobs which is part of the main pillars of the EU's strategic alliance with Africa.
The RSF provides risk support to the Ecobank Group and thereby promotes the mandate's objective of enabling access to finance ? at advantageous terms like reduced collateral requirements - to SMEs. The RSF will stimulate the Group to expand its outreach to small and medium sized enterprises and simultaneously support the attraction of funds from other private sector stakeholders for the supported projects.
Objectives
The primary objective of the operation is to enhance access to finance for small and medium-sized enterprises (SMEs) and enable improved terms and conditions like reduced collateral requirements and/or lower financing costs.
Sector(s)
- Credit lines - Credit lines
Proposed EIB finance (Approximate amount)
EUR 15 million
Total cost (Approximate amount)
EUR 94 million
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 - 27/10/2022
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).