PROJECT

Projects

Summary of Investment Information

Project Number

34934

Company Name

INDEPENDENT PETROLEUM GROUP K.S.C.P

Date SPI Disclosed

Apr 3, 2014

Country

Ethiopia

Region

Africa

Projected Board Date

May 5, 2014

Environmental Category

B - Limited

Status

Completed

Last Updated Date

Nov 30, 2016

Department

Gbl Ind, Manufact, Agribus & Services

Industry

Manufacturing

Previous Events

Approved : May 8, 2014
Signed : Jun 2, 2014
Invested : Jun 6, 2014

Sector

Other Petroleum and Coal Products

Project Description

IFC, Natixis and other commercial lenders are jointly establishing a trade finance facility of up to US$ 450 million to finance year 2014 importation of refined oil products in Ethiopia. The facility will provide Independent Petroleum Group Limited (“IPG”) with a short term structured trade finance facility to maintain the supply of oil products to Ethiopia over one year. This facility will help securing fuel supply to the second most populated country in Sub-Saharan Africa and one of the fastest growing economies in Africa. A steady supply of fuel through reliable channels is critical to ensure a better pricing, and therefore control inflation. Of the total facility amount, IFC’s funded and unfunded exposure will be up to US$ 150 million in a form of direct parallel lending.
IFC has financed the year 2013 importation of refined oil products in Ethiopia through a risk participation facility with BNP Paribas (IFC project number 32846)

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation