Financial services group Rand Merchant Bank (RMB) has partnered with the World Bank's Multilateral Investment Guarantee Agency (MIGA) to extend short-term funding support on a trade-backed facility for Côte d'Ivoire.
Through collaboration with MIGA and the Minister of Economy and Finance for Côte d'Ivoire, RMB facilitated a short-term loan to support crucial trade-related initiatives.
“This transaction will pave the way for further MIGA-guaranteed short-term facilities across the continent to assist with developmental initiatives, critical projects and the importation of crucial goods such as food, fertilizer and medicines alongside other resources,” said RMB trade and working capital structured solutions West Africa co-head Ben Bechet.
“RMB has a proud history of supporting sovereigns on the continent with their funding and capital markets requirements, and this is a first-of-its-kind facility for an African sovereign,” he added.
“Through deep collaboration with RMB and MIGA, the teams were able to successfully structure and execute a process we hope to scale and introduce to other African countries,” said MIGA Global Trade Finance head and UK head Clarine Stenfert.
“MIGA’s Trade Finance Guarantee Framework seeks to support sovereigns or sub-sovereigns across emerging markets with their trade financing requirements, alleviating the current liquidity constraints imposed by the current high inflationary environment and the retreat from markets by private sector players,” she said.
MIGA provides political risk insurance guarantees to private sectors and investors in a broad range of sectors in developing economies. It also promotes foreign direct investment into developing countries to support economic growth, reduce poverty, and improve people’s lives. It fulfils this mandate by offering political risk insurance guarantees and credit enhancement to private sector investors and lenders.
“RMB’s strategy entails forging partnerships with insurance, guarantee and export credit agency providers to extend meaningful funding support to our clients across Africa. Collaboration with development financial institutions and multilaterals remains key to truly unlocking new opportunities to support our clients,” said Bechet.