1. Financing Available for African MFIs

We have been contacted by a funder looking to provide financing to Financial Services Companies in Africa.

Please let me know if you have deals that meet the requirements outlined below:

  • Deal Size:     $2.5mm to $30mm
  • Funding Type:     Debt
  • Interest Rates:     Depends on perceived credit risk
  • Security:     PariPassu with other international lenders
  • Exposure limit:     Up to 10% of company assets
  • Tenor:     Up to 5 yrs but typically 2-3 yrs for a first investment
  • Shareholding:     Institutional preferred
  • Applicant Average Loan Size:     At least 50% of portfolio with a ticket of $10k or less
  • Use of proceeds:     Max 50% of portfolio in consumer finance i.e. at least 50% income generating / commercial loans

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

2. Funding Available for African Financial Institutions for On-Lending to SMEs

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

FUNDING DETAILS:

    1. LENDING LIMITS:
      Private Sector Lines of Credit: $1m – $10m or local currency equivalents, depending on equity capital base. These are medium to long term (4-7 years) funding facilities offered for on-lending to SMEs.
      NOTE: THIS FUNDING IS AVAILABLE IN LOCAL CURRENCIES.
    2. GEOGRAPHICAL COVERAGE:
      All Sub-Saharan African countries.
    3. ELIGIBILITY CRITERIA:
      Minimum trading history of 3 years, must be profitable, with minimum equity capital base of $4m. Funding up to 35% of equity.
    4. PRIORITY SECTORS:
      The financial services firms, which on-lend to SMEs
    5. INTEREST RATES:
      Libor +5%. NOTE THAT IF THE FUNDING IS IN LOCAL CURRENCY, THE INTEREST RATE MAY INCREASE TO COVER HEDGING COSTS.
    6. TENOR:
      Can be up to 7 years

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

3. 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

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