Ethiopian Coffee

completed

The Program consists of a 3-year, up to $10 million revolving IFC guarantee facility for selected bank participants under a financing program to assist coffee farmer cooperatives in Ethiopia to (i) acquire wet mills for processing “cherry” coffee into “washed” parchment coffee, and (ii) meet their working capital needs. The facility will be structured as an unfunded Risk Sharing Facility (“RSF”) to be committed annually and renewable for up to two times on the selected banks’ portfolio of loans to the small farmers. For the 2010/2011 coffee season, IFC has selected Nib International Bank S.C. (“NIB”) for the Program. It may add new banks in subsequent seasons. The total size of the financing program over the 3-year period is expected to be up to $21 million to be phased as follows $8.5 million in 2010; $15 million in 2011 and $21 million in 2012. Up to 20% of the program will be for equipment loans of a 3-year maturity while the remaining 80% will be post-harvest working capital loans of up to one year. Each working capital loan will have a clean-up period.