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Projet FirstRand
Proparco has allocated a senior credit line to FirstRand Bank, a longstanding partner, to support SME development in South Africa. The bank specifically wants to target the most disadvantaged entrepreneurs.
Client presentation

FRB is a universal bank which has developed several franchises: First National Bank for retail banking, Rand Merchant Bank for merchant banking and investment and Westbank for leasing. FRB is a longstanding partner of AFD Group and Proparco, since the agency opened in 1994, and it has been allocated several credit lines.

Project description

The project involves a new USD 30m senior credit line to provide long-term resources in USD to SMEs. It is part of a more extensive USD 90m credit line, alongside DEG, which will act as lead arranger, and OeEB (Austrian DFI). The loan structuring (maturity, margin) is exactly the same as for the previous line allocated to FRB in 2012.

Project impact
This project will support the development of the SME sector in South Africa. Indeed, FRB is seeking to develop its activities in this segment and has set up specific programs to support SMEs from disadvantaged communities, such as the Black Economic Empowerment Program. Concerning employment, the project will contribute to creating 5,000 direct jobs in the bank (60% of which will be held by women) and maintaining some 4,700 jobs with the bank's SME clients.
18/08/2016
Date of signature of the project
South Africa
Location
Financing tool
26 995 411 Euros
Amount of funding
Loan of USD 30m
Financing details
FIRSTRAND BANK LIMITED
Client
CES