Wholesale Fund to Lenders

aBi Finance (Agribusiness Guarantee and Lines of Credit)

Posted 10 months ago

Description

A de-risking / credit enhancement mechanism channeled through financial institutions, intended to promote agribusiness and green financing to the agribusiness SMEs exhibiting additionality. The guarantee covers credit risk and is applicable to any activity along the agricultural value chain.

Investment Details

Guarantees and lines of credit to FIS so that they can offer affordable finance to the small holder farmers. Target facilitators: Financial Institutions that lend to the agricultural sector especially small holder farmers.

Fund Structure

500M UGX (Guarantee Cover)

Target Impact

Enhance access to agribusiness and green finance by agribusinesses through the stimulation of financial institutions’ risk appetites to lend to agribusiness sector and demographics which are credit constrained by reason of, -Insufficient collateral by value and or documentation (chattels, “kibanja”). -Depth of agricultural financing ordinarily offered by financial institutions such as, medium / longer term financing instead of short term, financing of agribusiness sectors, markets, demographics such as refugees, youths and women and locations excluded by the financial services sector, and increasing the percentage exposure of FI credit portfolio to agribusiness lending.

Contacts

Tel: +256 (0) 312 351600 Email: info@abi.co.ug Website: www.abi.co.ug

ADDITIONAL FMC INFO

Eligibility: Must be an agribusiness Must have additionality as defined above Maximum loan amount – USh 4B Any two of the parameters below: Permanent staff - Up to 100 Annual sales – Up to USh 8B Total Assets – Up to USh 5B