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Bank Fundraising Guarantee

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 or more (Depending on the tiering of the financial institution and its classification as a banking group or not)

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.

other products

African Guarantee Fund contributes to the promotion of economic development in Africa through provision of Partial Guarantees & Capacity Development to Financial Institutions to facilitate access to finance for Small and Medium-sized Enterprises.