Alios Finance S.A.

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BIO has committed USD 11 million to Alios Finance, a leasing company active in several African countries, which specifically targets  smaller SMEs.

Alios Finance S.A. is a Pan-African specialized finance company that has been operating in Africa for more than 50 years. Alios Finance offers a broad range of asset finance solution for SMEs, corporate and individuals, which include leasing, investments loans, long-term rental. Alios is the biggest non-bank financial institution across Sub-Saharan Africa and its business is split between targeting SMEs (leasing and equipment) and targeting individuals (consumer finance).

BIO will provide long term funding to the youngest and smallest subsidiaries of the Alios Finance Group and will offer the possibility to drawdown the facility in local currency, through a currency hedge with TCX, allowing Alios to mitigate its foreign currency exposure.

BIO’s support of Alios Finance will significantly contribute to local economic growth and local private sector consolidation through credit allocation to MSMEs. In fact, leasing is sometimes the only financial tool available to provide small and medium businesses, especially the smallest and even informal one, with medium term finance to support investments in productive and logistic assets. Banks do not look at these businesses because they are too small, and they do not have sufficient assets to serve as collateral. Alios contracts with informal MSMEs that usually do not have any significant asset and no reliable financial statements. Alios Finance provides them with a productive asset, around which they can build and develop their business. Furthermore, Alios Finance often helps its client to improve its financial reporting.

Also, leasing in general and Alios Finance in particular plays a critical role in bringing small businesses into the formal financial system: as informal businesses have access to lease financing, they start building a history of financial transactions. When the appropriate credit information-sharing infrastructure is in place, banks and other financial institutions can access these records, better manage risks, and start providing more comprehensive financial services to these small businesses. Thanks to leasing, small businesses also find incentive to join the formal sector.

Website: http://www.alios-finance.com/

  • Investment amount (€):

    $11M

    Target countries : Burkina Faso, Cameroon, Côte d'Ivoire, Gabon, Kenya, Mali, Senegal, Tanzania, Zambia

  • Contract signature :

    2015

  • Nature of intervention :

    Debt

  • Development impacts :

    • 1 — local economic growth
    • 2 — private sector consolidation/innovation
    • 3 — financial inclusion
    • 4 — promotion of ESG best practices