(Ecofin Agency) - The banking groups BNP Paribas, Société Générale and International Finance Corporation (IFC), a division of World Bank in charge of the private sector, have granted nearly €65 million ($79.5 million) loan to Société Burkinabe des fibres textiles (SOFITEX). The loan which is a short-term one carries a 3.7% interest rate and, it will be repaid within 12 months. 

Actually, the company’s overall need for the 2017/2018 cotton campaign, stands at $261 million. $130.5 million has been raised on December 8, 2017, from a pool of 11 banks brought by Ecobank Burkina Faso. This brought to $210 million the amount raised by the company for this campaign.

The funds raised will be used to buy cotton from producers, finance its transport from fields to factories, the ginning and the transport of semi-finished products to ports.

It is to be noted that the terms of these loans have not been disclosed so, it is difficult to assess their impacts on the company’s financial performance at the end of the campaign.

 Chamberline Moko