Project Description
This summary covers an application by Société Générale and/or Guarantee Holders yet-to-be-identified (“the Guarantee Holders”) for up to EUR 391.4 million in guarantee coverage for the risk of non-payment of a short-term loan facility, focused on supporting trade, to the Government of Cote d’Ivoire (acting through the Ministry of Finance and Budget) (“GoCIV”).
The MIGA-covered facility would be used to provide trade financing for payments aimed at supporting key sectors of the economy such as agriculture, water and sanitation services, education, social housing, environmental preservation and climate change mitigation, among other sectors.
Environmental Categorization
Trade-related transactions typically pose minimal E&S risks and impacts. The Project has been provisionally categorized as ‘FI-3’ under MIGA’s Policy on Environmental and Social Sustainability (2013). The applicable E&S requirements for this project will be the MIGA Exclusion List and applicable E&S laws in Cote d’Ivoire. The GoCIV will be responsible for screening the transactions against the MIGA Exclusion List and applicable E&S requirements. The GoCIV’s transaction implementation unit will also be required to comply with national labor laws.
Development Impact
The Project’s key expected development impact is facilitating GoCIV’s continued access to short-term trade finance and supporting the country’s resilience in the context of a volatile global financing environment. It is expected that the Project will help GoCIV maintain liquidity from a diversified lending base to deliver on a set of objectives that have been identified as national strategic priorities using a financial solution suited for the short-term needs of trade expenses.
