• Proparco offers financial institutions:
  • subordinated debt in EUR or USD for EUR 5m to EUR 25m for 5 to 10-year periods based on regulatory requirements. This Tier 2 debt aims to strengthen the equity of banks to assist their development in the SME segment
  • Senior loans for EUR 10m to EUR 100m (in EUR or USD) with a 4 to 12-year maturity to finance the development of the SME portfolio of banks.
  • Subscriptions of Social Bond issues, as defined by ICMA, with a use of funds earmarked for SME financing.

PROPARCO also invests in equity for a 5 to 8-year period, either directly (with average tickets of €5 million to €25 million for banks or leasing companies, €3 million to €20 million for microfinance institutions, and €500,000 to €3 million for FinTech start-ups), or on behalf of FISEA for small Tier 2 or Tier 3 financial institutions (including MFIs and institutions that guarantee SME portfolios), or via investment funds dedicated to the financial sector.

• We offer financial institutions risk-sharing tools to facilitate access to credit for microenterprises, SMEs and microfinance institutions via the following tools:
  • ARIZ: a final loss guarantee offered to financial institutions to cover 50% of an individual loan to an SME, 75% of an individual loan to a microfinance institution or 50% of an African SME loan portfolio
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  • MENA facility (guarantee component): a risk-sharing mechanism for private financial institutions in North African countries (Algeria, Egypt, Morocco and Tunisia) and the Middle East. With the support of the European Union.
    
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  • EURIZ: a final loss guarantee offered to financial institutions operating in the ACP (Africa, Caribbean and Pacific) region to cover up to 70% of loans to developmental SMEs or 50% of loans to SMEs in difficult areas With the support of the European Union and the Organization of African, Caribbean and Pacific States (ACP).
     
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  • ARIZ TPE MINKA: a portfolio guarantee implemented by PROPARCO for financial institutions to allow them to cover up to 80% of loans to microenterprises/SMEs in certain crisis regions in Africa and the Middle East Find out more with an example
  • TRADE FINANCE: By securing the trade-related payment obligations of approved financial institutions in emerging markets, Proparco’s Trade Finance Programme supports growth and competitiveness of local SMEs.