FIRSTRAND BANK RPA


Overview

  • Reference: P-Z1-HAB-020
  • Approval date: 01/04/2015
  • Start date: 31/03/2016
  • Appraisal Date: 13/12/1901
  • Status: ApprovedAPVD
  • Implementing Agency: FIRSTRAND BANK LIMITED GROUP TREASURY
  • Location: JOHANNESBURG

Description

To support the expansion of First Rand Merchant Bank


Rationale

FFMA has assigned the project an obligor risk rating of 3, Low Risk in line with the Average weighted rating of the issuing bank portfolio based on the Bank


Benefits

The benefits of this RPA are three pronged;

(i) it will provide FRB with much required capital relief and vital visibility needed to strengthen its position and market share as a provider of TF across the continent

(ii) it will help alleviate some of the inhibitions caused to issuing banks by the difficulty in obtaining adequate credit limits to finance their TF transactions due to a dearth of risk appetite from confirming banks and

(iii) ultimately the facility will to a very large extent benefit African SMEs and indigenous firms who rely heavily on local issuing banks to fulfill their TF commitments. It is worth noting that FRB operates in Africa both as an originating institution and as a confirming bank.

Analysis of Expected Development Outcomes 1.1. Household Benefits The Facility will not directly contribute to job creation by FRB but employment opportunities will be generated at the level of projects to be financed by the additional capacity given to indigenous firms and SMEs. Increased access to finance for firms in FRB


Key contacts

TIJANI Babatunde Oluseyi - OFSD4


Costs

Finance source Amount
ADBUSD 69,022,163
DeltaUSD 163
TotalUSD 69,022,000