REGIONAL - Groupe Banque Centrale Populaire (BCP)

This is a new unfunded Risk Participation Agreement (RPA) worth USD 35 million between the African Development Bank (AfDB) and Banque Centrale Populaire Société Anonyme (BCP SA), the central entity of BCP Group, under which the two banks agree to share the default risk on a portfolio of eligible commercial transactions initiated by African issuing banks (IBs). This new RPA will replace the “first” unfunded RPA between the Bank and BCP and which expired in May 2021. The new RPA offers a 50% maximum individual cover over three-year period, with the possibility of a six-month extension, while the maturity of underlying transactions not exceeding two years. To support IBs and SMEs in LICs and transition States, the Bank will, in line with trade finance guidelines, cover up to 75% of the default risk of transactions with a significant development impact carried out by local banks that have a satisfactory credit risk rating. The new RPA will cover at least 30 IBs in 18 regional member countries (RMCs), including five transition States, namely Burkina Faso, Mali, Guinea, Niger and Togo.