Funding Available for African Financial Institutions

We have a financing institution that is looking to provide credit lines to African financial institutions that on-lend to clients. Details of the funding are below.

FUNDING DETAILS:

  1. LENDING LIMITS:
    a. Private Sector Lines of Credit: $5m – $15m, depending on equity capital base. These are medium to long term (3-10 years) funding facilities offered for on-lending purposes.
    b. Trade Finance Lines of Credit: $10m - $50m, depending on capital base. These are short term (1 year, renewable) funding facilities offered to finance foreign trade transactions for the exclusive importation of goods and commodities from Arab countries to eligible Sub-Saharan African countries.

  2. GEOGRAPHICAL COVERAGE:
    All of Sub-Saharan African countries, excl. Sudan, Mauritania, Djibouti, Somalia, Comoros, South Sudan, Zimbabwe and Eritrea.

  3. ELIGIBILITY CRITERIA:
    Minimum trading history of 3 years, must be profitable, with minimum equity capital base of $25m. Portfolio size doesn't matter that much as long as asset quality/ NPLs ratio is within regulatory limits/ industry benchmarks.

  4. PRIORITY SECTORS:
    The financial services sector -- specifically, commercial banks and development banks (as well as micro-finance finance institutions and leasing companies, on case-by-case basis).

  5. INTEREST RATES:
    Libor +5%.

  6. COLLATERAL:
    For commercial & development banks they usually offer unsecured facilities, provided that they are satisfied with their financials. As for other financial institutions (i.e. leasing companies, mortgage companies, MFIs, etc), security might be negotiated on case by case basis.

  7. TENOR:
    Can be up to 10 years for development banks and up to 8 years for commercial banks.

For more information, please contact: mansur@mncapital-africa.com