|Approval Date||20 Feb 2013|
|Signature Date||21 May 2014|
|Sovereign / Non-Sovereign||Non Sovereign|
|DAC Sector Code||24030|
The present intervention relates to a Trade Finance Facility provided to Ecobank Transnational Incorporated (ETI). This facility consists of a financial package that the Bank offers to ETI to support the financing of commercial activities through two instruments: i) a contribution of US $ 100 million through a risk-sharing agreement (RPC), and (ii) a US $ 100 million credit line for trade finance (CF-LDC). The RPC is expected to have a life of 3 years and will be implemented by EBI SA, a wholly-owned subsidiary of ETI based in France. The RPC will serve to facilitate intra-African trade and trade with other regions. CFL-CF will be awarded to ETI to support its 30 subsidiaries, which in turn will lend funds to local African companies engaged in international trade, including corporations and small and medium-sized enterprises (as defined by ETI, an SME is a company whose annual turnover does not exceed 2 million US dollars). The term of the LDC-FC is 3.5 years, with a grace period to be determined. CFL-CF resources should support pre- and post-shipment loans, as well as revolving credit and other short-term loans.
The project aims to help reduce the trade finance gap in Africa and promote broader economic growth, job creation, increased intra-African trade and regional integration. More specifically, it will support the following activities: (i) trade in underserved areas, including agribusiness, manufacturing and energy production; (ii) the issuance of irrevocable repayment commitments for financial institutions of LICs, countries in transition and countries emerging from conflict; (iii) stable funding for SMEs operating in ETI's sphere of influence and support for microfinance institutions outside the ETI network. At the enterprise level, one of the objectives of the project is to consolidate progress with the existing facility, further expand access to trade finance and promote financial literacy in sub-Saharan Africa.
The main beneficiaries of the project are Ecobank Transnational Incorporated (ETI), Small and Medium Enterprises, Regional Member Countries of the AfDB.
African Development Bank
|Last Update||28 Oct 2020|