Rwanda - "Compagnie Générale de Banque PLC" (COGEBANQUE)

The proposed project is a thematic, long term, specialized and targeted finance to Cogebanque whose proceeds will support its lending activities to SMEs operating in transformative sectors in Rwanda. Cogebanque is a commercial bank licensed and regulated by the National Bank of Rwanda (BNR). It was incorporated on July 17, 1999, and operates across the country. The project seeks to provide a financial package comprising: (a) A Subordinated debt3 amounting to USD 10 million with a tenor of 8 years, including five (5) years’ grace period. This will strengthen Cogebanque’s capital in the form of Tier II capital and provide it with a capital cushion for it to continue implementing its Strategic Plan, which involves significant growth in its customer base, banking infrastructure as well as loans and deposits base. (b) A targeted, thematic, Line of Credit (LoC) amounting to USD 4 million with a tenor of 8 years, including two (2) years’ grace period. This facility will enable Cogebanque fund its project pipeline in the manufacturing, and agriculture and energy sectors. Tight liquidity conditions and lack of depth in Rwanda’s financial markets make it difficult for Rwandan banks to source funding for medium to long term projects. This operation presents to the Bank a timely opportunity to work with an FI whose operations and outlook, will enhance development outcomes. The lending will avail important longer-term resources to growth-oriented SMEs focused in agribusiness and manufacturing in Rwanda and therefore enhance private sector development.