Our investment
Description of the investment.
Description of the investment.
This $50 million risk sharing agreement aims to enable Bank One to extend trade finance support to smaller African markets (known as 'Alpha' countries in our strategy, those most in need according to their GDP per capita, fragility measures and poverty gap). This includes countries where we have had limited exposure in the past. It will also support Bank One’s ambition to expand trade finance support in new markets, particularly in West and Central Africa.
Impact information
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
What?
| Impact |
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How?
| How? |
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Economic enabler: Our facility will allow Bank One to extend more trade finance to obligor banks to facilitate the flow of goods to people and companies. This will enable businesses to import the commodities, business inputs and capital equipment they need to sustain business operations, market output and contribute to GDP. Ultimately, this will lead to job preservation and opportunities, and the continued availability of goods and services for consumers. |
Who?
| Stakeholder | Geography | Characteristics |
|---|---|---|
| Firm owners, employees and suppliers |
100 per cent 'Alpha' markets |
We can assume mass market characteristics across the target countries and given the target markets, there's a strong likelihood that a proportion will be low-income. |
| Firm customers |
How much?
| Scale | Depth/Duration |
|---|---|
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We use the scale of the facility and estimated enabled trades as a proxy. Estimated trade enabled by this facility is $81 million per year. |
Depth: Depth is difficult to assess but impact is expected to be deeper in a context where the trade conditions have worsened. |
Contribution/additionality
| Contribution/additionality |
|---|
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Financial additionality: Our contribution is based on Bank One’s need for support to be able to provide trade finance in 'Alpha' markets in Africa, where commercial funding has largely been withdrawn. |
Risk
Execution RiskImmaterial or below benchmark use of the facility will decrease its impact and ability to deliver on objectives. Unexpected Impact RiskThe types of underlying products in trades facilitated by this facility may not be aligned with BII’s impact aims (O&G excluded and the exclusion list is in place). Evidence RiskNo line of sight of end beneficiary so some assumptions made about the people reached by this facility. |
Impact score
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Impact score (at point of investment)
The Impact Score is a tool to help us manage our performance against our strategic impact objectives. It is designed to incentivise investments that support our productive, sustainable, and inclusive objectives. You can find out more here. The Impact Score is published for investments made from 2022 onwards. The Impact Scores are calculated at the point of investment. We publish the Impact Scores of new investments annually, once the information has been externally assured by an independent third party. |
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Environmental and social information
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Environmental and social summary
A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.
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Environmental and social risk
A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.
Environmental and social summary
We agreed on an ESAP item for the development of a screening procedure to ensure for screening of transactions against BII's list of excluded activities.
Environmental and social risk
Medium-Low
Reporting and Complaints Mechanism
The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to reportsandcomplaints@bii.co.uk or by mail. See more details on our Reporting and Complaints Mechanism here.
For any other general enquiries contact us at enquiries@bii.co.uk
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Key facts
- Last updated
:
When the last quarterly update of the website database occurred.
- December 2024
- Project number
:
An identifier number shared by investments in the same project.
- D6115
- Status
:
The current status of the investment (green flag for active and red flag for exited).
- Active
- Region
:
The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.
- Africa, East Africa
- Country
:
The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.
- Africa
- Sector
:
We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.
- Financial services
- Sub sector
:
The sub-sector that the investment is made into; this provides a more granular level of detail than the ‘sector’ information
- Banks
- Investment type :
- Guarantee
- Start date :
- December 2023
- Amount :
- $50m
- Currency of investment :
- USD
- Domicile
:
The company or investment fund’s place of incorporation.
- Mauritius
We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.
For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.
For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.
For direct equity investments, this is the date at which British International Investment exited the investment.
For debt investments, this is the date at which the final debt repayment was made.
For funds, this is the date at which the fund was terminated.
For underlying fund investments, this is the date at which the fund manager exited the investment.
The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.
For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.
The currency in which the investment was made.
- Last updated
