Burundi - Banque commerciale du Burundi (Bancobu)

The proposed operation is a USD 5 million Transaction Guarantee (TG) facility to support the trade finance activities of Banque Commerciale du Burundi (Bancobu) in Burundi. Bancobu is a leading local bank headquartered in Bujumbura - Burundi and operating through a network of 49 branches across 16 provinces in Burundi. Established in 1960, Bancobu is registered and based in Burundi ranking first in the country in terms of balance-sheet size and employs approximately 400 people. Bancobu offers personal, SME, Corporate and Institutional banking services. Bancobu is a leading player in the SMEs trade financing activities, supporting SMEs operating in sectors such as agriculture and manufacturing. Bancobu operates in a challenging environment and its cost of international financial transactions has increased due to the high-risk perception of Burundi. The Facility will allow the Bank to provide up to 100% guarantee to Confirming Banks (CBs) for the non-payment risk arising from the confirmation of letters of credit and similar trade finance instruments issued by Bancobu. The facility is uncommitted. The facility will cover mainly strategic economic sectors provided with priority access to FX reserves. Climate finance is not attributed to this project.