Financing Products

FPM SA offers the following products :

1.The senior loans granted by FPM SA include loans repayable in bullet instalments as well as loans providing for repayment of the principal in instalments. The maturity of senior loans can range from 1 year to 5 years, with a minimum amount of USD 50,000 and a maximum of USD 6.2 million.

Exposure to each partner financial institution must be limited to 100% of its prudential capital (tier 1 + tier 2). Senior loans will generally have fixed (but declining) interest rates at market conditions. In a limited number of cases, the MPF SA may also grant variable-rate loans.

2. Subordinated loans granted by FPM SA in the form of quasi-equity comprise loans repayable in bullet instalments and loans providing for repayment of the principal in instalments. The maturity of these loans may range from 5 to 6 years, up to a maximum of USD 5 million. The overall exposure of these loans must not exceed 15% of the overall portfolio of FPM SA, while the exposure of each partner financial institution must be limited to 10% of its own funds. Subordinated loans will generally have fixed (but declining) interest rates at market conditions.

Financial institutions applying for subordinated loans will have to demonstrate moderate counterparty risk in order to be authorised to take out a subordinated loan with FPM SA. Preference will be given to financial institutions for which the resulting improvement in the solvency ratio will open up real opportunities for sustainable growth on the market.

3. The partial loan portfolio guarantee (GPP) is a counterparty risk-sharing product offered by FPM SA, manager of the Congolese government fund provided by the World Bank, to Participating Financial Institutions (PFIs). It consists of an agreement between FPM SA and the PFI for a maximum volume of outstanding loans to be guaranteed, with 50% cover in the event of payment default after 90 days, in return for payment of a commission.

The GPP covers the principal amount of the loan and accrued interest, excluding penalties and late-payment interest surcharges. The guarantee commission rate is 2% per annum, rising to 3% if the net deterioration rate reaches 4%.


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