RWA Schools BRD

completed

_x000C_This proposed investment involves the establishment of a risk sharing facility with the Banque Rwandaise du Developpment (BRD or the Bank) in Rwanda. Under the facility BRD will make loans to eligible private education institutions (pre-primary through tertiary) and to companies which support the education sector, e.g. accommodation providers. The project is a replication of similar facilities implemented in Ghana and Kenya and is in line with IFC’s objective to adopt a wholesale approach through risk sharing to support education in SSAUnder the proposed terms of the Facility, BRD would be responsible for generating a portfolio of education loans. IFC’s participation would involve taking risk on 40 percent of the senior tranche of that portfolio. This exposure would be protected by a first loss provided by BRD. In parallel, PEP Africa will design, raise funds for and implement an advisory services (AS) program to assess the scope and funding needs of the education sector and to improve the credit quality of participating schools.Education is a priority area for BRD. The proposed facility will enable it to grow its portfolio at a faster pace than it would do on its own and provide the Bank and the borrowers with much needed advisory services.