REGIONAL - NATIXIS - Trade Partnership in Africa - Risk Participation Agreement

This intervention is related the Risk Participation Agreement: Trade Partnership in Africa. It’s an unfunded USD 50 million Risk Participation Agreement (RPA) under which the Bank and Natixis will share the default risk on a trade transaction portfolio initiated by African Issuing Banks (IBs). The RPA will provide up to 50% individual coverage and run for a period of 3 years, with the possibility of a 6-month extension. The underlying transactions will have a maximum tenor of 2 years. The partnership will support 79 issuing banks (IBs) in 25 RMCs, including LICs and Transition States. To support the IBs and SMEs in LICs and Transition States, the Bank will, in compliance with trade finance guidelines, cover up to 75% of the default risk for transactions carried out by local banks with good credit standing.