CFD

PRIVATE SECTOR ASSISTANCE

1. Name of Organisation :
Caisse Francaise Development (CFD) Societe de Promotion et de Participation pour la Cooperation Economique - (PROPARCO)

2. Assistance Scheme/Program :
PROPARCO can support the private sector in two ways:

1. Equity Financing:

Capital investments are limited to a minority share, and are intended to be sold after a few years (between three and eight), once the business is operational and running smoothly. This capital injection takes the form of shares, shareholders’ advances, convertible bonds or subordinated loans.

Medium or long term loans (direct and indirect)

PROPARCO’s medium and long term loans are for periods of up to 12 years ( and sometimes more), with a grace period of up to five years. They are either channelled through local banks with whom agreements have been concluded or granted directly to those investors who are able to provide first rate security. Loans are predominantly in French Francs but may, when necessary, be in United States dollars.

3. Criteria :
PROPARCO is authorised to assist all sectors within the private sector with the exception of real estate and mass market distribution. Business are considered part of the productive sector when they meet the following three conditions:

the existence of an active private shareholding (even with a minority stake)

management methods in line with the practices used in private enterprise; and

not government controlled.

1.	Name of Organisation	:	Caisse Francaise Development (CFD) Societe de Promotion et de Participation pour la Cooperation Economique - (PROPARCO)

2.	Assistance Scheme/Program	:	PROPARCO can support the private sector in two ways: 1. Equity Financing: Capital investments are limited to a minority share, and are intended to be sold after a few years (between three and eight), once the business is operational and running smoothly. This capital injection takes the form of shares, shareholders’ advances, convertible bonds or subordinated loans. Medium or long term loans (direct and indirect) PROPARCO’s medium and long term loans are for periods of up to 12 years ( and sometimes more), with a grace period of up to five years. They are either channelled through local banks with whom agreements have been concluded or granted directly to those investors who are able to provide first rate security. Loans are predominantly in French Francs but may, when necessary, be in United States dollars.
3.	Criteria	:	PROPARCO is authorised to assist all sectors within the private sector with the exception of real estate and mass market distribution. Business are considered part of the productive sector when they meet the following three conditions: the existence of an active private shareholding (even with a minority stake) management methods in line with the practices used in private enterprise; and not government controlled.