2023-06-29 14:37:00
(Ecofin Agency) – After the People’s Bank of Mauritania, a second Mauritanian bank signed a financing agreement with the International Finance Corporation in June. The transaction aims to support the lending activity of the Mauritanian Investment Bank.
The Mauritanian Investment Bank (BMI), which operates in Mauritania as a Sharia-compliant Islamic bank, is close to securing $30 million in financing from the International Finance Corporation (IFC). The information was reported by the financial institution on Tuesday, June 27.
This $30 million financing includes a loan for a maximum amount of $20 million, with a maturity of three years. It will be on-lent to micro, small and medium-sized enterprises (MSMEs) that are BMI clients and who encounter difficulties in accessing the funds necessary to finance and develop their activities.
The second component of this financing is a $10 million trade facility, with a repayment term of up to nine months. It will enable the Mauritanian bank to finance the commercial import and export activities of Mauritanian companies.
Following the conclusion of this partnership with the IFC, Mohamed Yahya Sidi Jiddou, Managing Director of BMI, indicated that this bank was “the first in Mauritania to obtain a senior loan from the IFC in 18 years».
Long before the BMI, the IFC was already involved in the Mauritanian banking sector with the granting of a trade finance facility in the amount of $10 million to the Banque Populaire de Mauritanie on 2 June. The transaction aimed to support the bank’s lending activity in favor of SMEs importing essential goods.
In Mauritania, access to finance is limited for MSMEs and this represents a major constraint for the development of their activities. Thus, through this financing initiative concluded with the Mauritanian Investment Bank, the IFC hopes to contribute to reducing this financing gap, in particular with companies owned by women.
It should be noted that this IFC financing for BMI will be accompanied by a set of advisory services covering the management of credit risk and environmental and social risk.
Chamberlain Moko
Read also:
30/03/2023 – The People’s Bank of Mauritania obtains a $15 million guarantee to finance importers of essential goods
1688063714
#Islamic #bank #secures #30m #financing #IFC #support #MSMEs
