SFC FINANCE LIMITED
Status: Approved investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
FMO’s strategic partner Tuninvest-Africinvest (“Africinvest”) is active in private equity in Africa. Every year Africinvest receives over one hundred applications for equity which are in fact better suited for debt financing. Banks and debt funds do target these small- and medium-sized enterprises (SMEs), but offer short maturities and asset backed lending. What most of the SMEs that approach Africinvest need, however, is financing that matches their cash flows, with longer maturities and adequate grace periods. After observing this trend over several years, Africinvest decided to jump into the gap and start SME Finance Company Limited (SFC).
What is our funding objective?
SFC Finance Limited aims to selectively serve medium-sized enterprises with a solid track record. Typical clients will have at least 3-5 years of successful operations. Tickets will range from USD 1.5-4 mln. Loans will be senior and secured, and structured to match the cash flows of the borrowers.
Why do we fund this investment?
This investment offers FMO the opportunity to be an anchor investor in this initiative from our strategic partner Africinvest. SFC will have high development impact, as it will offer SMEs long-term cash flow-based financing which will give high-potential SMEs in Africa the chance to seize their growth opportunities. This is a segment with high demand and limited competition. With a strong capital base, this ensures that SFC has an excellent starting position.
- Region
- Africa
- Country
- Africa
- Sector
- Financial Institutions
- Effective date
- 12/20/2013
- Total FMO financing
- USD 6.00 MLN
- Funding
- MASSIF
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B