DCM NSIA ABS 2

pending

The proposed transaction entails IFC being an anchor investor for up to EUR30.5 million (c. US$34.8 million or 40% of total issuance) in the Euro tranche of an asset-backed securities (ABS) issuance offered to the WAEMU regional securities market (Bourse Régionale des Valeurs Mobilières or BRVM) by NSIA Banque Côte d’Ivoire (NSIA CI or the Bank), an existing IFC client. The Bank established a Special Purpose Vehicle FCTC NSIA Banque, whose new compartment will raise up to US$87 million equivalent for on-lending to small and medium-sized enterprises (SMEs) in Côte d’Ivoire. This would be IFC’s second investment in the FCTC NSIA Banque and will help mobilize up to US$52.2 million equivalent via the XOF tranche from both local and international investors (the Project). The Project is being processed under the SME Envelope of the MSME Finance Platform for operational efficiency: although it will not benefit from the associated 15% Pooled First Loss Guarantee provided by the IDA-20 IFC-MIGA Private Sector Window's Blended Finance Facility (IDA-PSW's BFF) as Côte d’Ivoire is not an IDA-PSW eligible country, the Project benefited from Board delegated authority. By refinancing part of its retail and SME loan portfolios, the Project will provide NSIA CI (a) an alternate source of long-term funding to help expand its SME lending, (b) an increased capacity to originate new SME loans and support the growth of the local economy and (c) capital optimization by moving high risk-weighted assets off balance sheet.