BPL Sr Loan (IFC-40920)

Countries
  • South Africa
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 15, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Business Partners Limited
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Ring Fence
  • Small & Medium Enterprises
A financial intermediary is a commercial bank or financial institution that receives funds from a development bank, sometimes for a specific lending purpose. A "ring fence" is another name for this specific purpose. These funds are then used for lending by the financial intermediary to client companies or individuals.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 47.67 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported 600
Converted using 2018-05-08 exchange rate.
Project Cost (USD)
$ 47.67 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Currency conversion note:
Bank reported 600
Converted using 2018-05-08 exchange rate.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 13, 2018

Disclosed by Bank May 8, 2018


Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description

The project consists of a 6-year ZAR600 million ($47.67 million) senior loan to Business Partners Limited (“BPL”). The IFC loan forms part of the SME Push Program and will strengthen BPL’s long-term funding position and support the expansion of its lending operations to underserved SMEs in South Africa.

Investment Description

The proposed investment consists of a 6-year senior loan of up to ZAR600 million (~US$48 million equivalent). The funding will be used exclusively for expanding BPL’s lending operations to SMEs, with a particular focus on women-owned SMEs.

Financial Intermediary
Financial Intermediary: A commercial bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actor Relationship

There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).

The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.

The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.

Private Actors Description

Business Partners Limited has a diversified shareholding composed of a mix of entities including government, local commercial banks, insurance companies, other corporate bodies and individuals. The principal shareholder is Eikenlust (pty) Limited, a subsidiary of Remgro Ltd, with a 42.8% stake.


Contact Information

Business Partners Ltd. 
Mark Paper 
Chief Operating Officer 
+27 0117136600 
mpaper@businesspartners.co.za 
37 West Street Houghton Estate, Johannesburg, South Africa 
www.businesspartners.co.za 

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/