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South Africa: a loan to Nedbank to support SMEs
Project
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Signature date
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Location
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South Africa
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Financing tool
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Financing amount (Euro)
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20698791
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Financing details
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USD 25m loan
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Customer
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NED BANK LIMITED
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Type of customer
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Financial institution
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Country of headquarters
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South Africa
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Project number
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PZA1117
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Environmental and social ranking
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IF-A
This information is given at the time of signature, without prejudice to any developments in the operation/project.
The financing involves a USD 50m loan with DEG under the Friendship Facility and will allow Nedbank to finance SMEs during the Covid-19 crisis.
Client presentation
Nedbank is a universal bank offering a comprehensive range of products for all types of client, including private individuals, large companies, institutions and SMEs.
Project description
The financing project appraised jointly with DEG under the Friendship Facility will be in the form of a USD 50m senior credit line and will support growth in the bank’s SME portfolio. This financing is fully in line with AFD Group’s Choose Africa Initiative. Supporting access to financing for SMEs is particularly relevant during the current crisis, in addition to the measures deployed by the South African Government.
Project impact
Through Proparco’s financing, 1,460 SMEs should benefit from a loan and 39,600 jobs should be supported in the local economy over the next 5 years. The operation will also mobilize USD 28.7m of private finance.
The project should thereby contribute to SDG 8 (Decent work and economic growth).