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Project Finance Bond (PFB)

Alongside banks and their corporate clients to guarantee the financing of medium and long-term investments.

The Project Finance Bond (PFB) is an individual investment guarantee offered by ETC – Export Trading & Cooperation which allows banks and other financial institutions to mitigate and weight the risk of default by covering medium and long-term loans. The instrument implemented for this is the stand-by letter of credit according to the rules of the International Chamber of Commerce (ICC).

Our observation

It is difficult when you are a Bank in Africa to finance large investment projects.
Banks and other Financial Institutions, faced with compliance of prudential principles, are obliged to request collateral and/or the support of Guarantors.
As a result, many projects never see the light of day in this situation.
It is in this context that ETC – Export Trading & Cooperation, offers its guarantee instrument, in order to facilitate the financing of investment projects.

What is the Project Finance Bond (PFB)?

Project Finance Bond, abbreviated as “PFB”: the Investment Guarantee, designates an individual guarantee to cover the risk of non-payment of the repayment of a medium/long-term loan for the benefit of an investment in the primary sectors, secondary and tertiary, excluding sectors of activity prohibited by the ETC group’s code of ethics.
Risk sharing enables the credit institution to mitigate and weight counterparty risks, comply with the CET1 (Common Equity Tier 1) ratio, defined, according to the Basel III prudential framework, as ratio between the primary capital of the credit institution (Tier 1) and weighted exposures in the portfolio.

Who can benefit from the Project Finance Bond?

  • You are a Bank or other Financial Institution
  • You are a corporate

When to apply for the Project Finance Bond (PFB)?

  • You wish to finance an investment project over the medium/long term
  • You want to weight the credit risk and benefit from an additional solution to strengthen equity.
  • You want to mitigate the risk of non-repayment.

The benefits of the Project Finance Bond (PFB) for you.

  1. Financing investment loans.
  2. Mitigating and weighting credit risk
  3. Increase your project financing capabilities

The terms of the Project Finance Bond

Silent risk sub-participation


Amount of guaranteed loans

min. €250,000 / max. 30 Million €

Guaranteed quota

Up to 80% loan

Duration of eligible loans

Up to 10 years

Covered risks

Risk of non-payment

Generating events


Periodic Reporting

Some beneficiary banks

  • Central African States Development Bank (BDEAC)
  • Sahelo-Saharan Bank of Industry and Commerce Benin (BSIC)
  • BGFIBank Cameroon
  • BGFIBank Gabon
  • BGFIBank Equatorial Guinea
  • BGFIBank Guinea DRC
  • NSIA Banque Benin
  • Societe Generale Equatorial Guinea
The Project Finance Bond in a nutshell


Coverage of medium and long term loans (investment projects)


Risk of non-payment of installments


Standby Letter of Credit (SBLC)

SWIFT Interbank Message



SME Corporate

Guarantor / Confirmer

ETC – Export Trading & Cooperation


Financial Institution (FI) and 
Development Finance Institution (DFI)

Formula :APR = (AF/T) + (IF/T) + CF


APR = Annual Percentage Rate

AF = Application Fees (Indicative rate 1% flat)

IF = Issuing Fees (Indicative rate 0.5% flat)

T = Tenor (year)

CF = Commitment Fee (Annual rate according to Financial Rating*)

*  See table

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Project Finance Bond (PFB)