Product Description
This is a guarantee that facilitates acquisition of funds by a financial institution intended for onward lending to SMEs.
The Bank Fundraising Guarantee (BFRG) enables financial institutions to raise funds whose proceeds are used to facilitate scale-up of credit facilities to eligible qualifying borrowers.
Key Features
- Coverage: 50% -100%
- USD 20,000,000
Benefits
- Assists PFIs scale up their SME lending activities in situations where their target SME clients are unable to meet collateral threshold requirements;
- Enables PFIs raise long term resources for use in funding the long term needs of their SME clients;
Through the Capacity Development component of the BFRG
- Develops and strengthens the skills, management practices, strategies, systems, competencies and abilities of PFIs to effectively increase their SME financing business
Eligibility Criteria
- The request must be from a Financial Institutions targeting Small and Medium-sized Enterprises.
- The target of the Bank Fundraising Guarantee cuts across all sectors with an exception of those listed in AGF’s exclusion list.
