THE PROJECTS

For conflict-affected countries such as Iraq, where the movement of people and goods is complicated and heavily restricted, access to reliable, high quality voice and data services is key for economic activity and for personal and family safety. With a loan of USD 75m, PROPARCO will support Zain Iraq, the country’s largest mobile phone operator, to expand service coverage and improve telecommunications quality throughout the country.

The four-lane motorway extension between Sandy Bay and Four Paths is expected to reduce travel times, road accidents and emissions and to stimulate economic growth on the island and construction will create significant direct and indirect employment. Essential long-term funding for the USD 285m project will be provided entirely by international financial institutions.  

For over twenty years now, Turkey has been experiencing record growth in its energy demand with an annual rate at 7.1% between 1992 and 2008. The development plan of the Turkish power company EnerjiSA is expected to have far-reaching impacts for Turkey, including job creation and additional tax revenues.

Nicaragua’s power generation rate figures among the lowest in Central America due to its obsolete and limited generation fleet. In 2009, only 55% of the population had access to electricity. In order to face demand, which increases by 6% a year on average, the country has no choice but to import fossil fuels from neighboring countries. Yet Nicaragua holds considerable geothermal potential thanks to the Maribios Volcanic Range on the Pacific coast.

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Households in Jamaica have one of the highest electricity bills in Latin America and the Caribbean (16% of GDP per capita), despite the fact that the power sector is well-structured with a high penetration rate (97% of Jamaicans have access to electricity) and independent institutions. This particular situation can be explained by the fact that Jamaica is a relatively small island and it has not developed a diversified mix of generation assets. 

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Brazil is the world's largest producer and exporter of sugar cane and dominates the market. Guarani, a Brazilian company under the control of Tereos Internacional, is Brazil's third largest sugar company. Its main activities involve processing sugar cane in order to produce sugar, ethanol and electricity. Ground sugar cane residues can indeed produce energy

In 2007 Groupe Mon Loisir (GML), Mauritius’ largest conglomerate established AfrAsia Bank on the basis of an innovative Asia-Africa regional bank concept. AfrAsia Bank offers financial advising and structuring services, leveraging on Mauritius’ attractiveness as a regional financial hub between Asia and Africa. PROPARCO took an equity participation in the bank so as to support its growth on the long-term and to foster the development of South-South trade.

Sub-Saharan Africa’s cement market is hampered by local production capacities, which are often limited. This situation puts a brake on the implementation of infrastructure, construction and housing projects. PROPARCO made an equity investment in the African holding company of the German cement manufacturer HeidelbergCement. The project aims at supporting the cement industry when the latter helps boosting infrastructure and construction development while complying with strict environmental standards.

PROPARCO and Nutriset, a company involved in the fight against malnutrition, signed on October 15^th a financing convention and a partnership agreement to permit the geographical expansion of nutritive food’s production for children suffering from malnutrition. Nutriset developed a range of innovative products intended to the prevention and the treatment of malnutrition in developing countries, of which Plumpy’Nut a nutritive paste made with peanuts.

FISEA will invest 10MUSD in the GroFin Africa Fund (GAF), which is dedicated to the financing of small and medium enterprises in Africa, often with a risk profile that is too high for traditional commercial banks.

GroFin targets a segment of the market between microfinance institutions and classic investment funds which is not supported by traditional financing. GroFin provides an innovative combination of risk capital and business development assistance to viable enterprises in order to enhance their probability of success. Beyond capital funding, FISEA will assist in the long-term evolution of GroFin into a financial institution specialising in financing small and medium firms in Africa.

The telecommunications sector is rapidly growing in Chad : today the country has a total of two millions subscribers to the mobile phone network. Demand being steadily growing, the number is forecast to more than double by 2014. PROPARCO, alongside the International Finance Corporation, allocated a line of credit in local currency to Millicom Chad. This loan aims at supporting infrastructures development and the supply of telecommunications services.

To date, only 5% of low income people in developing countries benefit from a social and insurance coverage. FISEA, an investment fund managed by PROPARCO, made an equity investment in LeapFrog fund. The latter will invest in existing insurance companies and new microinsurance companies. FISEA’s support to LeapFrog fund will permit to broaden the coverage and to improve the quality of insurance services to populations traditionally excluded from them.

Turkey is one of the countries where growth in energy demand is the highest. PROPARCO allocated to Belen Elektrik Üretim A.Ş., subsidiary of Güris Group, a senior loan of € 11.5 M, alongside other banks, so as to finance the building and the exploitation of a wind farm with a 30 MW overall capacity. This project will contribute to the Increase of energy production capacities in Turkey.  

In Brazil getting  a qualification can substantially improve future income. The Brazilian government has promoted private sector intervention as an effective complement to public services. PROPARCO allocated a senior loan  to Anhanguera Educacional Participações (AESA) in order to support the development of a major Brazilian player in the higher education and vocational training . AESA provides low-income young workers with both affordable and high-quality training.

  This project aims to shore up the capital of Byblos Bank. It comprises a $30M equity investment in the capital of Byblos Bank, alongside the International Finance Corporation (IFC). It will allow Byblos Bank not only to  pursue its international development strategy in both the Mashreq region and Africa but also to attract more private international investors. Byblos Group activities for SME / SMI financing will be expanded as well.  

Le Groupe Bigot spécialisé dans le secteur de la fleur coupée a créé une exploitation au Kenya afin de produire des roses.  Le Groupe Bigot a établi un programme d’investissement qui doit lui permettre de se développer et de pérenniser son exploitation au Kenya. La prise de participation de FISEA de 2 , 5 M€ dans le Groupe Bigot permettra le financement partiel du programme d’investissement. Cet investissement s’inscrit dans la stratégie de développement du tissu économique en Afrique subsaharienne. L’activité du G roupe Bigot a un impact significatif en termes d’emplois dans la région. 

Proparco has been supporting the regional group Tuninvest since 1997. Marocinvest, its Moroccan subsidiary, manages two private equity funds: MPEF I (Maghreb Private Equity Fund I) and MPEF II which both operate throughout the Maghreb region and have a total endowment of roughly €140M.
 

In May 2008, Proparco took a €6M stake at the second closing of the SGAM AI Kantara private equity fund. This fund has a total size of €150M – including a Moroccan investment vehicle – and will be investing in the Maghreb and Mashrek regions. 

In May 2008, Proparco allocated a €50M lower tier 2 subordinated loan to BMCE Bank which allowed it to reinforce its capital. The main aim was to allow BMCE to continue its international expansion, particularly in Africa.