ZIMBABWE - Central Africa Building Society (CABS)

The proposed project is a USD 7.5 million Transaction Guarantee (TG) facility to support the trade finance activities of Central African Building Society (CABS) in Zimbabwe. This is the first proposal to the Bank under the new TG instrument. CABS was established as a building society in 1954. The facility, which will be unconfirmed, will allow the Bank to provide up to 100% guarantee to Confirming Banks (CBs) for the non-payment risk arising from the confirmation of letters of credit and similar trade finance instruments issued by CABS. This operation will enable CBs to increase their exposure towards CABS in Zimbabwe, which CABS cannot easily get elsewhere given the significantly reduced credit appetite for Zimbabwe by international financiers (de-risking). Climate finance is not attributed to this project.