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
ORWOTHWUN Charles - PITD2
Costs
Finance source | Amount |
---|---|
ADB | USD 69,022,163 |
Delta | USD 163 |
Total | USD 69,022,000 |
Related selected projects
-
Nacala Road Corridor Phase-III: Knowledge Generation and Infrastructure
-
Advans Bank Congo (ABC): Bridging the financing gap for MSMEs in DRC
-
African Development Fund: Skills, Jobs and Entrepreneurship in Rwanda
-
PARSAR Aims to Strengthen Food Security and Cut Poverty in the DRC
-
AfDB-Algeria : Stimulating Competition Through Capacity Development