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Non-Sovereign Guaranteed Loans to Public-Sector Enterprises (Public-Sector NSGLs) are made to public enterprises that meet specific eligibility criteria, without the requirement of a sovereign guarantee by the host government.
Eligible countries for Public-Sector NSGLs are regional member countries (RMC) classified either as AfDB countries or Blend countries. As of 1 January 2012, Blend countries include: Nigeria; AfDB countries include: Morocco, Algeria, Tunisia, Libya, Egypt, Cape Verde, Gabon, Equatorial Guinea, Angola, Namibia, Botswana, South Africa, Swaziland, Mauritius, Seychelles.
Under NSGLs operations, the Bank may provide assistance to a public sector enterprise engaged in activities in any sector, including, but not limited to, manufacturing, infrastructure, extractive industries, energy, and other productive activities, provided that the enterprise meet the eligibility criteria.
To be eligible for financing, an enterprise should be privately owned and managed, meaning that more than 50% of its voting shares must be in private hands.
Loan pricing consists of a base rate and a risk adjusted lending margin. Other fees such as front-end fees, commitment fees, appraisal fees are also applicable for non-sovereign loans.
Non-Sovereign Guaranteed Bank loans generally have a maximum maturity of 15 years inclusive of the grace period. Other maturities can be considered on a case by case basis for non-sovereign guaranteed loans.