Africa Growing Together Fund provides EUR 30 million loan to Ecowas Bank for Investment and Development for on-lending purposes (Linked to Umbrella Record ID#36104)

Project narrative

On May 22, 2014, the African Development Bank (AfDB) and the People's Bank of China (PBOC) signed an agreement for the Africa Growing Together Fund (AGTF) (see Umbrella Record ID#36104). The purpose of this $2 billion loan facility was to finance large development projects in Africa between 2014 and 2024. The AGTF is sponsored by the PBOC and the administered by AfDB. Then, on October 5, 2023, AGTF signed an EUR 30 million loan agreement with the Ecowas Bank for Investment and Development (EBID) for on-lending purposes. On the same day, the African Development Bank (AfDB) issued a EUR 50 million loan and a $50 million loan for the same reason. The borrowing terms of the AGTF loan are as follows: a 3.5-year maturity, an unknown grace period, an unknown interest rate, an unknown commitment fee, and an unknown upfront (management) fee. The purpose of the project is to support the trade finance activities of EBID and its participation in the agricultural value chain in West Africa. EBID is expected to on-lend to commercial banks and local enterprises to support their trade finance needs. The loan proceeds are expected to support enterprises in the agriculture and soft commodity space, who in turn are expected to support the purchase of fertilizer and strategic commodities like rice, sorghum, maize, and fertilizers. The loan proceeds are expected to ultimately benefit local enterprises, cooperatives, and farmers involved in the agricultural value chain in the West Africa region.