Bank Fundraising Guarantee

This is a guarantee that facilitates acquisition of funds by a financial institution intended for onward lending to SMEs.

The Bank Fundraising Guarantee (BFRG) enables financial institutions to raise funds whose proceeds are used to facilitate scale-up of credit facilities to eligible qualifying borrowers.

Key Features

• Coverage: 50% -100%
• USD 20,000,000

Benefits

• Assists PFIs scale up their SME lending activities in situations where their target SME clients are unable to meet collateral threshold requirements­;
• Enables PFIs raise long term resources for use in funding the long term needs of their SME clients;

Through the Capacity Development component of the BFRG

• Develops and strengthens the skills, management practices, strategies, systems, competencies and abilities of PFIs to effectively increase their SME financing business

Eligibility Criteria

• The request must be from a Financial Institutions targeting Small and Medium-sized Enterprises.
• The target of the Bank Fundraising Guarantee cuts across all sectors with an exception of those listed in AGF’s exclusion list.