Regional - Ecobank Transnational Incorporated Trade Finance Package


Project Summary

Approval Date 20 Feb 2013
Signature Date 21 May 2014
Sovereign / Non-Sovereign Non Sovereign
Sector Finance
DAC Sector Code 24030
Environmental Category 3
Commitment U.A 64,687,655.65
Status Completion

Project General Description

The proposed Facility is a USD200 million financial package offered by the Bank to Ecobank Transnational Incorporated (ETI) in order to support its trade finance activities through two instruments: (i) a USD 100 million contribution to a risk participation agreement (RPA) and; (ii) a USD 100 million trade finance line of credit (TF-LOC). ETI is a pan-African financial institution created in 1985, with 30 subsidiaries across Africa and total assets of USD 17 billion in 2011. This facility will enhance the profile of ETI as an emerging international confirming bank. The Trade Facilitation Loan (TFL) of USD100 million which is for 3.5 years will be provided to the holding company, ETI, to support trade finance activities across many of its affiliates in Africa, who would on-lend funds to mainly local corporates and SMEs engaged in importation to and exportation from Africa. The second component of the package is a 3-year unfunded risk sharing facility of USD100 million that will be matched by ETI in the form of a Risk Participation Agreement (RPA). The proposed financial package will provide ETI with an opportunity to increase trade financing in the continent, especially in difficult and challenging time. The facility will also support trade facilitation in post-conflict and fragile states.

Project Objectives

The purpose of the project is to provide finance and guarantees to and alongside Ecobank in support of trade transactions in RMCs. The objective of the Trade Finance (TF) total package of USD200 million is to contribute towards reducing Africa’s trade financing gap and promote broad-based economic growth through significant job creation, increased intra-Africa trade and closer regional integration. At the company level, one of the objectives of the project is to enhance ETI’s capacity as an emerging international confirming bank in Europe for Africa-related trade transactions.

Beneficiaries

The main beneficiary of the facility is ETI. Notably the facility will among others be used to support trade activities in underserved ADF countries, including fragile and post-conflict countries, SMEs operating within ETI’s footprint, as well as support local banks outside of EI’s own network.

Participating Organization

Funding
African Development Bank

Information

IATI identifier 46002-P-Z1-HAB-010
Last Update 22 Nov 2020

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Contact Details

Email private-sector@afdb.org

Geographic Location

Country Multinational