Rawbank, DR Congo’s largest bank by assets, signed a $265 million financing deal with a group of development financing partners to boost its balance sheet for lending to small and medium-sized businesses.
The deal is led by the World Bank’s private lending arm IFC, alongside France’s Proparco, the UK’s British International Investment, and two other development lenders, Rawbank executives told Semafor.
DR Congo’s banks have traditionally run largely on short-term deposits, putting a cap on how much they can lend. Rawbank’s head of development finance partnerships, Laurence Feza, said the risk-sharing with its partners allowed it to offer longer term loans and take on more exposure. The deal targets at least 1,500 new SME loans over four years and is a first close on a broader $300 million fundraise, Feza told Semafor, with more lenders expected this year.