Project Description
This summary covers an application by FirstRand Bank Limited (London Branch, acting through its Rand Merchant Bank Division) to cover an increase of a short-term revolving loan facility of up to EUR 100 million to be provided to the Government of Republic of Côte d’Ivoire (GoCIV, through the Ministry of Economy and Finance), for a tenor of up to 1 year.
The MIGA-covered portion of the Facility would be used to provide short term loans for trade related payments aimed at potentially supporting key sectors of the economy such as the healthcare, infrastructure, and agriculture, among other sectors.
Environmental Categorization
The MIGA-covered facility will support short-term trade payments to suppliers of Côte d’Ivoire. These transactions pose minimal environmental and social (E&S) risks and impacts and as such, the overall portfolio risk is considered low. The project has thus been categorized as ‘FI-3’ under MIGA’s Policy on Environmental and Social Sustainability (2013). The applicable E&S requirement for this project is the MIGA Exclusion List. RMB will be responsible for screening the transactions.
Development Impact
The Project is expected to enhance the resilience of GoCIV to couple with the liquidity strains imposed by the COVID-19 pandemic and the current global inflationary environment, which include the need for short term liquidity, working capital and trade finance facilities to support the government’s critical developmental needs. The MIGA-supported facility is expected to support GoCIV to continue to execute its strategic plan to meet its development goals under a challenging global environment. In particular, the facility will help the GoCIV unlock new liquidity, potentially diversifying their lending base, at a time when private sector players are retreating from core markets due to current economic conditions.
