SGM bond

active

 The proposed Project is an up to US$15 million (in Malagasy Ariary (MGA) equiv.) investment for IFC's own account in a three-year senior unsecured bond to be issued by Societe Generale Madagasikara (SGM). SGM is an existing client of IFC under the Base of the Pyramid (BOP) Platform. The bond, which will be issued out of SGM's sustainable bond framework, will be privately placed and is expected to raise up to US$35 million in total. The Project is processed under the BOP Platform, which is designed to support lending to micro, small and medium enterprises (MSMEs) by financial institutions (FIs) in emerging markets in response to the COVID-19 pandemic and the interrelated crises which followed. 50% of the proceeds from the bond issuance will be used to finance MSMEs while the rest will finance renewable energy projects. IFC's investment will target MSMEs only.As part of the BOP Program, the Project will use IDA PSW's Local Currency Facility (LCF) to source local currency, as well as the Pooled First Loss Guarantee (PFLG) from IDA PSW's Blended Finance Facility (BFF).