Medium and long-term lending

Our lending activity

PROPARCO’s products are complementary to those of local or international private banks. Indeed, the mission of development institutions , including PROPARCO , is to be niche players by providing financial products that are often neglected by the private sector. Their activities can consequently vary enormously from one market to another.
 

In addition to cofinancing or joint risk-sharing mechanisms with other European development agencies, since 2007 PROPARCO has benefitted from a sub-participation agreement with AFD which allows it to increase its lending capacity. PROPARCO can consequently provide loans ranging between €5M and €100M (the average amount is €13M) , with maturities of between five and twenty years.
 

In order to support a client over such a long period, PROPARCO needs to be able to adjust its lending operations which consequently include mechanisms to reduce or extend maturities depending on exogenous parameters (commodity prices , rainfall , etc.). This need for flexible tools has led PROPARCO to develop a wide range of loan products which now include senior loans , subordinated or participation loans and an increasing number of junior products.
 

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