FPM SA offers senior and subordinated loans.
1.Senior loans granted by FPM SA include bullet loans as well as loans providing for the repayment of the principal in several instalments. The maturity of senior loans can range from 1 to 5 years for a minimum amount of USD 250,000 to a maximum of USD 5 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, FPM SA may also grant variable-rate loans.
2.Subordinated loans : FPM SA can provide quasi-equity in the form of subordinated loans at market conditions. In order to qualify as quasi-equity, the loans granted must comply with the standards set by the Central Bank of Congo for subordinated debt.
Financial institutions seeking subordinated loans will have to demonstrate a moderate counterparty risk in order to be eligible. FPM SA will prioritize financial institutions that particularly benefit from the improved solvency ratio, opening up real opportunities for sustainable growth in the market.