Revised Strategic Framework of the Private Sector Credit Enhancement Facility (PSF)

The Private Sector Credit Enhancement Facility (PSF or “the Facility”) was established by the African Development Fund (ADF or “the Fund”) as a risk-sharing vehicle to support private sector financing in ADF countries. It does so by participating in the credit risk of the Non-Sovereign Operations (NSOs) financed by the African Development Bank (ADB or “the Bank”). The Facility has been established as a trust fund arrangement under Article 8 of the Fund Agreement. Its management is guided by the general principles of trust funds administered by international financial institutions1. It is bankruptcy-remote from the Fund and is operationally and financially autonomous from the Bank. A brief overview of the Facility’s background, portfolio status and results since inception as well as references of the key source documents are contained in Annex.1 (the “PSF at a Glance) and Annex.2 (the “PSF Source Documents”), respectively.