|Approval Date||06 Dec 2016|
|Signature Date||27 Feb 2017|
|Planned Completion Date||31 Mar 2021|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||24030|
This intervention relates to the Technical Assistance Grant to Botswana Development Corporation (BDC). It was designed as a result of the opening of a credit line of BWP 850 million (76.2 million) with a maximum term of 15 years (3 years grace period) requested by the Botswana Development Corporation (BDC). The African Development Bank's proposal for support to the BDC aims to strengthen a financial institution that plays a key role in Botswana's efforts to promote the private sector and diversify the economy and, at the same time, give the Bank visibility on the ground. The proceeds of the LOC will be on-lent to vital sectors in Botswana mainly through loans to finance new investments, with a focus on projects that need financing for their growth and that encourage local participation. The LOC will consolidate BDC's cash position and its ability to provide concessional financing to operators in its target sectors, such as agribusiness, clean energy and infrastructure. It will also allow BDC to expand its loan asset base and rebalance its portfolio by increasing the proportion of pure debt and quasi-debt, which will improve its cash flow.
The objective of the project is to open a Botswana Pula 850 million (USD 76.2 million) sovereign guaranteed LoC for Botswana Development Corporation (BDC) with a maximum term of 15 years.
The main beneficiary of the line of credit is the Botswana Development Corporation (BDC). In addition, the line of credit will be on-lent to projects and companies in priority sectors in Botswana.
Middle Income Countries Fund
Botswana Development Corporation
|Last Update||19 Oct 2020|