LINE OF CREDIT TO BANCO POUPANCA E CREDITO SA


Overview

  • Reference: P-AO-HAB-003
  • Approval date: 21/10/2015
  • Start date: 20/10/2016
  • Appraisal Date: 17/11/2014
  • Status: OngoingOnGo
  • Implementing Agency: BANCO POUPANCA E CREDITO SA
  • Location: Angola

Description

The proposal is for a 10-year (2 year grace period) government guaranteed line of credit (LOC) of up to USD 325 Million (mln) to sup port Banco de Poupan


Objectives

The proposal is government guaranteed line of credit to support Banco de Poupan


Rationale

There is the need to support RMCs to diversify their economies. The proposed transaction will be the first support to the financial sector in Angola and will provide much needed liquidity to support government efforts to diversify the economy and reduce imports. In addition, the transaction will ensure sustained support to underserved sectors and population on more appropriate terms. The proposed facility provides an entry point opportunity to supporting the private sector actors in Angola and to strengthen a local bank in its efforts to deliver on the economic mandate. With the Bank support, BPC will not only be able to support priority sectors in Angola, but also to diversify its funding base and strengthen its environmental and social systems as well as its best practices in terms of business management and policy.


Benefits

The project will enhance access to finance by SMEs and low-income populations and

(ii) contribute to helping Angola diversify its economic base among other benefits. Additionally,the LOC facility will help to generate o direct job opportunities of which about 35% will be for of which a substantial amount are women. Moreover, the propsed facility will help low income households access financing and sustain self-employment. . While BPC also has a social responsibility project that continues to bring unbanked populations into the banking system thus contributing to financial inclusion.


Key contacts

MACHARIA Lilian Wanjiru - PIFD1


Costs

Finance source Amount
ADBUSD 210,357,349
Co-financierUSD 113,269,342
DeltaUSD 38,310
TotalUSD 323,665,000