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Proparco offers a wide range of financial products tailored to the specific needs of private investors in developing countries (loans, equity, quasi-equity, guarantees). In West Africa, Proparco’s activity is based on 5 types of operations:
Proparco is a Development Finance Institution jointly held by
Providing long-term and/or subordinated financial resources to banking systems
Proparco’s mission is to catalyze private investment in emerging
Proparco provides a range of financial products (debt, equity and quasiequity) designed to support companies (manufacturing industries, service sectors, agribusinesses…) in their development. Indeed in 2009, Proparco participated to the financing of the creation of a pan African airline through a loan of $19.5M. This operation has favoured the development of viable and efficient transport infrastructures and regional integration. Proparco also finances investment funds, directly or through some regional or pan African funds of funds.
and developing countries in support of growth, sustainable development and achieving the Millennium Development Goals (MDGs). Proparco finances operations which are economically viable, socially equitable, environmentally sustainable and financially profitable.
Contact Julien Lefilleur West Africa representative of Proparco Tél.: +225 22 40 70 40 E-mail : lefilleurj@proparco.fr 1, bd François-Mitterand BP 1814, Abidjan 01, Côte-d’Ivoire
Financing essential infrastructure for growth In the framework of infrastructure projects that involve specific financial structures (PPPs, private electricity producers, concessions) and require long term foreign currency resources, Proparco allocates financing in the form of long-term and/or structured loans, equity or quasi-equity. Proparco granted a oan of $15M in order to finance the network expansion of a telecommunication company in Ghana.
Website www.proparco.fr
Supporting the financing of microfinance institutions
BICIGUI, BOA Group, Cauris Investissement, SOAGA, Finaircraft,
By supporting microfinance institutions, Proparco also contributes to bringing about profound changes to the economic fabric and to the fight against poverty. This financing is made via bank guarantees and subordinated financing.
Millicom, Ciment Du Sahel, IPP Kounoune, Palmci, I&P development…
Backing technically our partners
Proparco’s Abidjan covers: Bénin, Burkina Faso, Cap-Vert, Côte-d’Ivoire, Gambie, Ghana, Guinée, Guinée-Bissao, Liberia, Mali, Niger, Sénégal, Sierra Leone, Togo.
By assisting the reinforcement of their capabilities, Proparco favours the increase in companies’ performances and enhances the developmental impact of its investments (job creation, economic growth, CSR).
Other partners financed by Proparco
Areas of operation
In 2009, Proparco allocated some €50M of financing in West Africa.
corporates banks
Supporting the development of companies and using investment fund leverage
shareholders from the North and South.
Proparco’s financial products in West Africa
investment funds infrastructures
Proparco supports the structuring and sustainable development of banking activity by providing long-term financial products for debt, equity and quasi equity. For example, in 2009 Proparco acquired a 7.7% stake in a bank in Côte-d’Ivoire.
Agence Française de Développement (AFD) and by public/private
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Proparco and FISEA’s financial products in West Africa
Proparco finances businesses and banks of all nationalities
FINANCIAL INSTITUTIONS
SMEs, BIG CORPORATES OR INFRASTRUCTURE PROJECTS
BÉNÉFICIAIRES Equity
Amount
Maturity
Equity investment in SMEs via partner investment funds
Rate
depending on fund strategy
Direct equity investment in larger companies
€1M to 20M for a minority position
5 to 7 years
min. IRR 10%
Loans or quasi-equity (€ or $)
Long-term and/or structured senior or subordinated financing
€5M to 50M
up to 15 years
at market rate, depending on the level of subordination
Guarantees (€ or local currency)
Bank loan guarantee (ARIZ)** requested from partner bank max. quota: 50% of loan
max. €2M (equivalent)
1 to 12 years
annual fees: 1.35 to 2% of the guaranteed amount
Senior or subordinated bank loan guarantee
€5M to 50M
up to 15 years
at market rate, depending on the level of subordination
Private equity funds
Equity
Equity investment in the capital of investment funds
€5M to 20M
8 to 12 years
Expected IRR in foreign currency: 10%
Banks / financial intermediaries (leasing companies, insurance companies...)
Loans or quasi-equity (€ or $)
Refinancing foreign currency and/or equity requirements in the form of senior or subordinated loans
€5M to 50M
up to 12 years
at market rate, depending on the level of subordination
Equity
Equity investment in the capital of banks or financial institutions
€1M to 20M for a minority position
5 to 7 years
min. IRR 10%
Portfolio guarantees (€ or local currency)
Guarantee (ARIZ)** for loan portfolios that are formed on the basis of predefined criteria and for moderate unit amounts
Microfinance Institutions (MFI)
FISEA*
Financing tools
Investment and Supporting Fund to African Enterprises
Annual fees based on the outstanding guaranteed amount or fixed fees based on the guaranteed amount
Trade Finance Portfolio Guarantee
€5M to 50M
5 to 7 years
fees based on the guaranteed amount
Equity
Equity investment in the capital of MFI
€1M to 5M for a minority position
5 to 7 years
min. IRR 10%
Loans or quasi-equity (€ or $)
Long-term senior or subordinated financing
€5M to 10M
up to 12 years
at market rate, depending on the level of subordination
Guarantees (€ or local currency)
Bank loan guarantee (ARIZ)** requested from partner bank max. quota: 75% of loan
max. €2M (equivalent)
1 to 12 years
annual fees: 1.35 to 2% of the guaranteed amount
Senior or subordinated bank loan guarantee
€5M to 12M
up to 12 years
at market rate, depending on the level of subordination
FISEA is an investment fund taking minority stakes (equity and quasi-equity) into companies, financial institutions and investment funds, that can not access traditional financing because of their risk profile.
€1M to 10M
5 to 10 years
*FISEA is owned by AFD and managed by Proparco. **ARIZ is a guarantee mechanism managed by Agence Française de Développement. It aims to give SMEs and microfinance institutions easier access to financing.