Project Summary

Project General Description

The project aims to provide a 12-year (including a 3 year grace period) multi-currency Line of Credit (LOC) to Industrial Development Corporation (IDC) of up to USD 100 million and R 1.3 billion for on-lending to projects in industrial infrastructure including, manufacturing, agro-business, new industries and SMEs amongst others which are also aligned with the Bank’s High 5 priorities. IDC was established in 1940 and is fully owned by the South African Government. It operates as a self-financing, independently sustainable development finance institution. This is the Bank’s third non-sovereign guaranteed facility to the institution. The LOC will also strengthen and enhance IDC’s long-term liquidity especially for dollars, and enhance its capacity to meet the demand for long-term financing needed by target sectors. The assistance comes at a critical time for IDC as it attempts to raise substantial amounts at a time SA’s (including several state-owned enterprises’) credit rating has recently been downgraded by both Fitch and S&P and when there is increased risk aversion to State Owned Enterprises. The facility will also help diversify and stabilize IDC’s funding base, reduce its funding concentration risk and hopefully crowd-in other investors.

Project Objectives

The project supports IDC’s development projects, focusing on industrial infrastructure, agro-processing and industrial value chains in South Africa and other RMCs to promote industrialization and regional integration. This will be the Bank’s third non-sovereign guaranteed LOC to IDC.

Beneficiaries

The project will benefit IDC, SMEs and businesses owned by women and / or black people in several sectors. It will thus create jobs for women and youth and promote inclusive growth and reduce inequalities in the country.

Participating Organization

Information

Export

Download

Contact Details

Geographic Location