I and M Bank (Rwanda) PLC NASIRA PortfolioStatus: Approved investment
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Who is our customer
Incorporated in 1963, I&M Bank (Rwanda) Plc is the oldest bank in Rwanda. It is today one of the leading players in the industry with a strong footprint across the country. I&M Bank Rwanda offers the full range of personal, business, institutional and corporate banking products throughout its locations. The bank has been listed on the Rwanda Stock Exchange since March 2017 and is a subsidiary of I&M Group PLC, a leading regional financial services group in Eastern Africa with a presence in Kenya, Tanzania, and Uganda as well as a joint venture in Mauritius.
What is our funding objective?
FMO is providing a USD 10mln “NASIRA” portfolio guarantee with a possibility to top up to USD20 mln within one year of effectiveness. The facility provides credit risk sharing for I&M Rwanda’s MSME portfolio with a focus on MSME loans to women, youth and agriculture clients. With this guarantee in place, FMO will be supporting I&M Rwanda to increase their lending to MSMEs by managing the potential credit risks for the underlying portfolio.
Why do we fund this investment?
I&M Rwanda is an existing client of FMO and a well performing bank with strong footprint across Rwanda. They are expanding more into MSME lending with FMO’s portfolio guarantee providing them with the support required to increase their MSME portfolio while managing the potential credit risks. FMO will also be providing Technical Assistance to support I&M Rwanda in delivering their MSME lending strategy. This investment has a FMO Reducing Inequalities label as it contributes to the economic development of Rwanda which is categorized as ‘least developed country’.
What is the Environmental and Social categorization rationale?
This facility has been categorized as Category A in accordance with FMO’s Sustainability Policy and based on I&M Rwanda’s overall loan portfolio and exposure to the corporate sector. Exposure to high E&S risk sectors is below 10%. I&M Bank Rwanda has created its E&S Policy statement in 2014, which was updated in 2019. Next to that the bank developed the E&S Management Procedures, explaining procedures as well as the different roles and responsibilities in the E&S credit process. An E&S Action Plan has been agreed to enhance the Environmental and Social Management System and E&S risk management practices, in line with I&M Group Policy to ensure the bank has adequate processes and procedures in place to manage the E&S risks in its portfolio accordingly.
|Date||Total FMO financing|
|6/27/2023||RWF 10593.34 MLN|
- Website customer/investment
- Financial Institutions
- Publication date
- Effective date
- Total FMO financing
- RWF 345.44 MLN
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)