FCS RE SCE Senior Loan

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The proposed project consists of a 4-year unsecured senior loan of up to 5.5 billion Central African Franc (“XAF”) or approx. US$8.4 million equiv. comprising up to 1.8 billion XAF (US$2.8 million equiv.) from IFC’s own account and mobilization from other lenders of up to 3.7 billion XAF (US$5.6 million equiv.) to Société Camerounaise d’Equipement (“SCE” or the “Company”), the second independent leasing company in Cameroon by market share for on-lending and leasing services to Small and Medium Enterprises (“SMEs”) (the “Project” or the “Loan”). As per the Company’s strategy, the Project will provide SCE with funding to support SMEs operating in Cameroon’s priority sectors, including construction and public works (38% of the activity) and transport (25%) while growing its agriculture and medical equipment portfolio. The project is expected to be supported by IDA20 IFC-MIGA Private Sector Window Local Currency Facility (“IDA-PSW LCF”) as described in the Blended Finance Section.SCE is a Non-Bank Financial Institution (NBFI) in Cameroon established in 1963. Through its 12 branches, SCE operates 3 lines of business namely (a) equipment sales to corporates and households, (b) equipment financing in the form of traditional credit and leasing to corporates and households, and (c) money transfer services using established agents such as Express Union, Money Gram, Western Union, and WafaCash. SCE is the second largest specialized NBFI in Cameroon with a market share of 17% and the fifth provider of leasing solutions in Cameroon with a market share of 4.2%.