50421 - GTFP ATRI Wegagen Bank

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Summary of Investment Information

Project Number

50421

Company Name

WEGAGEN BANK SC

Date SPI Disclosed

Jan 12, 2026

Country

Ethiopia

Region

Africa

Projected Board Date

Jan 19, 2026

Environmental Category

FI-3 - No Impact

Status

Pending Disbursement

Last Updated Date

Mar 27, 2026

Department

Regional Industry - FIG Africa

Industry

Financial Markets

Previous Events

Approved : Nov 11, 2004
Signed : Aug 22, 2024

Sector

Commercial Banking - Trade

Project Description

The proposed project is an unfunded trade finance facility under IFC’s Global Trade Finance Program (GTFP or the GTFP Facility) of up to US$10 million, booked under the Africa Trade and Supply Chain Recovery Initiative (ATRI), benefiting from a 25 percent pooled first loss guarantee. The purpose of the proposed IFC trade line is to support Wegagen Bank’s (the Bank) trade program. GTFP’s investment in the form of a trade line will confirm banks’ partial or full guarantees [and other trade instruments] covering payment risk on banks in emerging markets in the Federal Democratic Republic of Ethiopia for their trade-related transactions.

Associated Advisory Engagement

The transaction is supported by a technical advisory service to enhance the Bank’s treasury and capital management, risk governance, as well as trade operations.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	7000.0
Loan
Equity

Development Impact

The project builds on GTFP’s global platform, increasing access to trade finance to emerging markets. The Project will provide increased access to trade finance to the Issuing Bank’s customers, including both corporates and SMEs. On the market side, the project will further connect the Issuing Bank’s cross border connections, increasing the country’s integration through both financial and real sector channels. It will help to link more traders to other countries and connect the country’s financial markets more deeply.

1. A non-financial source of additionality includes GTFP’s catalytic role as a trusted facilitator among cross border correspondent banks. GTFP’s guarantee structure helps to reduce key elements of confirmation risk for banks that provide this essential service for trade finance. 2. The Project taps GTFP’s global financial institution network for trade finance, which, along with IFC’s trade finance due diligence expertise, increasing the probability of new cross border relationship formation for the Issuing Bank. 3. IFC provides comfort to the Confirming Banks by mitigating non-commercial non-environmental and social risks, such as country, regulatory, project, or political risks, while adhering to IFC’s principle of political neutrality. 4. The Project is expected to help the Issuing Bank strengthen its trade finance operations. In addition, the Issuing Bank will benefit from IFC’s technical expertise in redesigning its trade solutions and marketing materials.

Indicator	Metrics	Comments
Volume of Trade Finance Transactions Supported ($)	USD M

E&S Category Rationale / Risks and Mitigation

This Project will support short-term trade finance activities. The E&S risks and impacts associated with these activities are considered low and the project has therefore been classified as a category FI-3 project in accordance with IFC's Sustainability Policy. The trade finance activities supported by the Project will be required to meet the requirements of the IFC's Exclusion List and other exclusions deemed necessary. The Project will not support any activities with significant E&S concerns such as: (a) involuntary resettlement; (b) risk of adverse impacts on Indigenous Peoples; (c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage; or (d) significant occupational health and safety risks. It will also not support any activities related to upstream oil & gas production and activities related to coal such as coal mining, coal transportation, coal-fired power plants, or infrastructure services exclusively dedicated to support any of these activities. IFC will also review the details of the underlying trade transactions to confirm that they do not include activities on IFC Exclusion List and any other exclusions.

Contacts

For Inquiries About the Project, Contact

Wegagen Bank S.C.
Geteye Mekuria
Chief Marketing and Strategy Officer
+251 115 52 3800
info@wegagen.com
Wegagen Tower, Ras Mekonen St, Addis Ababa
www.wegagen.com

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