|Approval Date||19 Nov 2010|
|Signature Date||17 Nov 2011|
|Sovereign / Non-Sovereign||Non Sovereign|
|DAC Sector Code||24030|
The proposed transaction is a US $ 12 million line of credit (LOC), split into USD 8 million as sub debt and USD 4 million as senior loan to the Bank of Kigali (BK) in order to meet it's need for long-term funding. BK's principal credit products are overdrafts, short, medium, and long-term loans. These are funded mainly by deposits with terms ranging from 1 -9 months and current accounts; both interest and non-interest bearing. The LOC, the first to BK from the ADB's private sector window, will support BK priority sectors, including agriculture, mining, manufacturing, energy and water, public works and construction, trade and tourism, communication and services. This line of credit, which runs for up to 10 years with a grace period of up to 2 years, will enable the Bank of Kigali to finance various sectors in the long term.
The credit facility will enable BK extend long-term credits to enterprises and enable them restructure their own balance sheets, improving efficiency. The credit facility will help BK increase the range of products it offers to its customers catalysing competition and improving the skills levels of BK staff.
The main beneficiaries of the propose lines of credit would be BK, its stakeholders, and the Small and Medium-sized enterprises (SMEs) engaged in productive sectors of the economy i.e., Agriculture value chain activities; manufacturing, tourism and hotel development etc.
African Development Bank
|Last Update||12 Jul 2020|