Senegal‘s Agricultural Bank Launches $143 Million Funding Drive for Rural Advancement
Dakar, Senegal - The Agricultural Bank of Senegal (LBA) has launched a major receivable securitization operation, dubbed “FCTC Agricultural Growth,” aiming to raise 80 billion FCFA (approximately $143 million USD) to bolster financing for the country’s agricultural sector and rural communities. The offering, open for subscription from August 28th to September 26th, targets investors on the UEMOA regional market.
The “FCTC Agricultural Growth” project is structured with a 60 billion FCFA senior tranche, rated AAA with an 8% yield, and a 20 billion FCFA mezzanine tranche, rated AA+ offering a 9% yield. Both tranches have a seven-year maturity. To mitigate risk and ensure investor confidence, the securities will be backed by a first-demand guarantee from the Senegalese State and will be listed on the BRVM (Bourse Régionale des Valeurs Mobilières) to facilitate liquidity.
This initiative comes as Senegal seeks to address a significant financing gap in its agricultural sector, despite its crucial role in the national economy. Agriculture currently contributes 15% to Senegal’s GDP and employs 22% of the workforce, yet it only receives approximately 3% of total banking loans.
The LBA, formerly known as CNCAS, possesses the most extensive rural network in Senegal and is strategically positioned to improve access to finance for agricultural projects and support the development of the rural economy. The bank already collaborates with international partners including the Green Climate Fund and the European Investment Bank to further its mission.
