SLGP PSW Dashen

pending

The proposed IFC investment is an unfunded Risk Sharing Facility (RSF or the Project) with Dashen Bank S.C. (Dashen or the Bank), a FIG portfolio client in Ethiopia since May 2022, for up to eight years, under which IFC will guarantee up to US$10 million equivalent in local currency (LCY)—covering 50% of the Bank’s credit risk—on a target portfolio of loans to small and medium enterprises (SMEs) with a maximum portfolio amount of US$20 million equivalent in LCY. The RSF will include (i) a 20% target to Agri MSME loans, and (ii) a 25% target for women-owned/led small, and medium enterprises (WSMEs).The Project would be processed under IFC’s Small Loans Guarantee Program (“SLGP”), a programmatic approach to de-risk and scale-up financing for MSMEs in eligible countries, such as Ethiopia.