Project detail - Coris Bank International

Who is our customer

Coris Bank International (“CBI”), a new FMO client, is the largest bank in Burkina Faso (a Least Developed Country, “LDC”). As the primary subsidiary of the regionally-operating Coris Holding, Coris started its operations in 2008. CBI supports its clients as a universal bank by leveraging the region’s reach and resources to offer a wide range of products and services to individuals, SMEs, and corporates. CBI has a branch in Niger (part of the scope of FMO's loan) and an extensive network of agents and ATMs spread across its countries of operations, enabling end-clients to access finance.

What is our funding objective?

FMO is providing a EUR 20 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-sized 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?

Through this funding, FMO is providing CBI with the long-term funding needed to finance the underserved segments. It qualifies as 100% for FMO’s Reducing Inequalities label since Burkina Faso and Niger 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 CBI to support eligible MSMEs in Burkina Faso and Niger operating in diverse sectors, including trade, manufacturing, agriculture, construction, and transportation services, among others. The E&S risks and impacts associated with the supported activities are limited and 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, CBI is required to screen eligible MSME loans against the IFC Exclusion List and comply with host country environmental and social laws and regulations. Additionally, CBI 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 Coris Group 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 Group 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.