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Title:
Morocco - Trade Promotion Partnership with BOA Morocco
Detail:
The project consists of a Trade Finance Facility with the following two components: (i) a Trade Finance Line of Credit (TFLOC) of EUR 20 million, and (ii) an unfunded Risk Participation Agreement (RPA) of USD 50 million to BOA SA. The TFLOC, with a tenor of three (3) and a half years including a 3-year grace period, will support the import-export activities of SMEs and local corporations operating in key sectors such as agriculture, general trading in basic necessities, the automotive industry, transport, health and the pharmaceutical industry. The RPA is a risk-sharing scheme under which both parties share the default risk on a portfolio of eligible trade transactions initiated by pre-identified African issuing banks (IBs) and for which the AfDB will offer a maximum individual coverage of 50%, which could exceptionally be raised to 75% for transactions made by IBs operating in low-income (LICs) or transition States. The RPA will have a 3-year tenor with the possibility of a 6-month extension. The maturity of the underlying transactions may not exceed 2 years. The RPA will cover at least 30 IBs in 15 RMCs, 8 of which are LICs and transition States.
Country:
Morocco
Source:
African Development Bank Group
Published Date:
N/A
URL:
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Regions:
Africa MENA Countries Northern Africa
Sectors:
Construction Energy-Power and Electrical Computer Hardwares and Consumables Marine
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