ZIMBABWE - First Capital Bank - Transaction Guarantee & Trade Finance Line of Credit

The Project relates to a medium-term financial package of USD 15 million in favour of First Capital Bank ("FCB") comprising: (i) a funded USD 7.5 million Trade Finance Line of Credit ("TFLOC"); and (ii) an unfunded USD 7.5 million Transaction Guarantee ("TG") instrument. The objectives of the Project are to (i) enhance FCB's trade finance offerings in Zimbabwe; (ii) facilitate more trade between Zimbabwe and the rest of the continent (intra-Africa trade) and with the rest of the world. Through the TG the Bank will provide up to 100% guarantee to international banks for the non-payment risk they take on FCB’s trade finance transactions, thereby ultimately reducing the need for cash collateral, and (iii) increase trade finance support to women SMEs. Overall, the project is expected to benefit SMEs and local corporates in Zimbabwe. Climate finance is not attributed to this project.