Project detail - Coris Holding S.A.

Who is our customer

Coris Holding (“CH”, or the “Holding”), a new client to FMO, is a holding company based in Burkina Faso (a Least Developed Country, “LDC”) and the majority shareholder in many of the Coris Group subsidiaries across Africa. The Holding was established in June 2013 to oversee all the Coris operations. CH and the Coris Group support their clients as a universal bank by leveraging the region’s reach and vast resources to offer a wide range of products and services to individuals, SMEs, and corporates. CH has an extensive network of agents, branches, and ATMs spread across its countries of operations, enabling end-clients to access finance.

What is our funding objective?

FMO is providing a EUR 15 mln senior loan under the A/B syndicated loan structure with the Arranger (IFC) acting as the lender of record vis-à-vis the customer. The proposed financing will enable increased access to finance for underserved Micro, Small, and medium Enterprises (“MSMEs”) and Women-owned and led SMEs (“WSMEs”) in the West African Economic and Monetary Union (“WAEMU”) region.

Why do we fund this investment?

FMO is providing CH with needed long-term funding to finance the underserved segments through this funding. It qualifies as 100% for FMO’s Reducing Inequalities label since Senegal and Mali (the targeted countries) are classified as Least Developed Countries.

What is the Environmental and Social categorization rationale?

Under the A/B syndicated loan structure, the Arranger is responsible for leading the ESG approach and conducting the environmental and social (E&S) due diligence. FMO accepts the transaction based on its assessment of the Arranger's due diligence and their ability to meet required processes and requirements. Per FMO's Sustainability Policy, the E&S category for this project is A. The project entails providing a senior loan to Coris Holding to support eligible MSMEs in Mali and Senegal operating in diverse sectors, including trade, manufacturing, agriculture, construction, and transportation services. The E&S risks and impacts associated with the supported activities are limited and are considered to be manageable through appropriate mitigation measures, categorizing the overall portfolio risk as medium. Consequently, the project has been classified as FI-2 under IFC's Sustainability Policy. Notably, the project will not finance coal-related or higher-risk business activities potentially involving involuntary resettlement, adverse impacts on Indigenous peoples, significant environmental or community health risks, biodiversity loss, cultural heritage impacts, or substantial occupational health and safety risks. For this investment, Coris Holding is required to screen eligible MSME loans against the IFC Exclusion List and comply with host country environmental and social laws and regulations. Additionally, CH must meet Life and Fire Safety requirements and adhere to IFC's Performance Standard (PS) 2 on Labor and Working Conditions. The key E&S risks stem from the Holding's and its subsidiaries' capacity to identify and manage potential E&S risks associated with the MSMEs they support. Typical risks include occupational health and safety issues, waste and hazardous waste management, and air emissions. While the labor practices at Coris Holding and its subsidiaries generally align with PS 2, some subsidiaries need to develop formal employee grievance mechanisms. Furthermore, there is a need for more established life and fire safety protocols within Coris Holding and the participating subsidiaries. For more detailed investment and E&S information, please refer to IFC's disclosure page: https://disclosures.ifc.org/project-detail/SII/49423/coris-holding-sl.