Multinational - Commerzbank Risk Participation Agreement

The proposed operation is a Risk Participation Agreement (RPA) between the African Development Bank (AfDB) and Commerzbank AG (CAG) to share the default risk on a portfolio of qualifying trade transactions originated by Issuing Banks in Africa and confirmed or indemnified by CAG. This will address critical demand for TF in Africa by providing support to SMEs in vital economic sectors such as agriculture and light manufacturing. AfDB will provide USD100 million in the form of guarantees to cover the repayment risk of pre-approved Issuing Banks (IBs) in Africa. The RPA will be for 3 years, and the underlying transactions will have tenors of no more than 2 years.