Kongo Coffee

completed

The proposed transaction involves a credit enhancement facility to a local bank, which is expected to be in the form of an unfunded partial credit guarantee. IFC will support (a) the PNG Kina 9 million (approximately US$4.25 million equivalent) renewable annual working capital need for Kongo Coffee Limited to purchase parchment from local coffee growers and (b) the PNG Kina 6 million (approximately US$ 2.84 million equivalent) long term facility for capacity enhancements, overall technology improvements along with processing capacity expansion.IFC will provide an unfunded partial credit guarantee to a local bank, which may result if called upon in a potential direct exposure to Kongo Coffee Limited. It is expected that the level of guarantee will gradually decrease over time. Kongo Coffee Limited is the only coffee processing company based in PNG Highlands. It operates out of its existing processing facilities in Chuave, Chimbu province.