We have several funders that are looking to provide credit lines to African financial
institutions. We also have several options for Tier II Capital, i.e., subordinated debt,
funding.
DETAILS OF THE FUNDING AVAILABLE FROM TWO OF OUR FUNDERS ARE
OUTLINED BELOW.
NOTE: We have developed relationships with several additional funders in
addition to the two outlined below.
To date, we have raised (i) $30 million for a Ghanaian bank, (ii) 65 million for a
Nigerian bank, (iii) $45 million for another Nigerian bank and (iv) $25 million for a
Namibian bank.

A. SME ON-LENDING FUNDING DETAILS:
1. LENDING LIMITS: Private Sector Lines of Credit: $1m – $10m or local
currency equivalents, depending on equity capital base. These are
medium to long term (4-7 years) funding facilities offered for on-lending to
SMEs.
NOTE: THIS FUNDING IS AVAILABLE IN LOCAL CURRENCIES.
2. GEOGRAPHICAL COVERAGE: All African countries.
3. ELIGIBILITY CRITERIA: Minimum trading history of 3 years, must be
profitable, with minimum equity capital base of $4m. Funding up to 35% of
equity.
4. PRIORITY SECTORS: The financial services firms, which on-lend to
SMEs
5. INTEREST RATES: Libor +5%. NOTE THAT IF THE FUNDING IS IN
LOCAL CURRENCY, THE INTEREST RATE MAY INCREASE TO
COVER HEDGING COSTS.
6. TENOR: Can be up to 7 years.

B. GENERAL CREDIT FACILITY AND TRADE FINANCE FACILITY FUNDING
DETAILS:
1. LENDING LIMITS:
a. Private Sector Lines of Credit: $5m – $15m, depending on equity
capital base of the counterparty. These are medium to long term (3-10 years)
funding facilities offered for on-lending purposes to private sector projects and
commercially-oriented public sector projects.
b. Trade Finance Lines of Credit: $10m – $50m, depending on capital
base of the counterparty. These are short term (1 year, renewable) funding
facilities offered to finance foreign trade transactions that that exclusively
entail importation of goods and commodities from Arab countries to eligible
Sub-Saharan African countries.
2. GEOGRAPHICAL COVERAGE: All of Sub-Saharan African countries,
excluding Sudan, Mauritania, Djibouti, Somalia and Comoros. Other countries
that are difficult to intervene in at the moment are South Sudan, Zimbabwe
and Eritrea.
3. ELIGIBILITY CRITERIA: Minimum trading history of 3 years, must be
profitable, with minimum equity capital base of $25m. Portfolio size doesn't
matter that much as long as asset quality/ NPLs ratio is within regulatory
limits/ industry benchmarks.
4. PRIORITY SECTORS: The financial services sector — specifically,
commercial banks and development banks. They will also consider micro-
finance finance institutions and leasing companies, on case-by-case basis.

1. INTEREST RATES: Libor +4-5%.

2. COLLATERAL: For commercial & development banks they usually offer
   clean / unsecured facilities, provided that they are satisfied with their
   financials. As for other financial institutions (i.e. leasing companies, mortgage
   companies, microfinance companies, etc.), security might be negotiated on
   case by case basis.

3. TENOR: Can be up to 10 years for development banks and up to 8 years
   for commercial banks.