REQUEST FOR APPLICATION

 MS4G Debt Restructuring for Agriculture Loans   

RFA No: RFA-CATALAYZE-21772-Ethiopia-2022-0051

CATALYZE Ethiopia: MS4G, an initiative funded by the United States Agency for International Development (USAID) and implemented by Palladium LLC, through this grant mechanism, is inviting financial institutions (FIs) that are interested in restructuring or refinancing loans to agribusinesses, one-stop-shops, agro-dealers/retailers, farmers, farmer cooperatives, cooperative unions, exporters or smaller financial institutions suffering demonstrable shocks caused by the Ukraine conflict and increased fertilizer prices. Palladium is implementing the MS4G Debt restructuring for agriculture loans under USAID Prime Contract # AID-7200AA19C00080.

Company Information:

Palladium is a global leader in the design, development, and delivery of Positive Impact —the intentional creation of enduring social and economic value. We work with corporations, governments, foundations, investors, communities, and civil society to formulate strategies and implement solutions that generate lasting social, environmental, and financial benefits.

Objective and Anticipated Outcomes

MS4G’s debt-restructuring activity aims to assist Agri-SMEs whose loan is categorized by the bank as either “special mention’ or “non-performing” - because of the increased cost or scarcity of fertilizer and production stemming from the economic impacts of the conflict in Ukraine.

This will be achieved by grants to multiple qualified commercial banks. This debt restructuring initiative is intended to ensure that eligible Agri-SMEs have the funds needed for the required minimum payment to restructure or refinance a loan and allow banks to adjust payments to enable client Agri-SME’s operations to monthly, quarterly, semi-annual, or annual payments to avoid a mismatch between cashflow generation and bank loan repayment schedules.

This debt restructuring initiative is expected to benefit the Agri-SMEs, their workforce, and farmer supply chains in the following ways:

• The ability to continue business operations without risk of default or inability to access working capital, thus reducing the potential negative impact on workers’ or supplier farmers’ livelihoods.
• Protecting Agri-SME’s credit rating to allow them to access refinancing or new credit in the future to grow or maintain the size of their current workforce and supply chains; or
• Reduce the risks of higher interest rates for current and future loans and/or credit lines that would result from a default, thus enhancing their future growth prospects.

As appropriate, following debt restructuring, MS4G will connect client Agri-SMEs whose loans were restructured to its network of Business Advisory Service Providers (BASPs). These BASPs will provide advisory and consultancy services to improve these businesses' longer-term operational, financial, and organizational performance to reduce the risks of future debt service challenges and thus overall restructuring risks. CATALYZE MS4G, through grants issued under this RFA, seeks to achieve the following but not exclusive illustrative outcomes: 6 / 15 Indicator Intervention Outcome towards Target Remark Ind G1: USD capital mobilized Up $25m This indicator is an all-inclusive sum of capital mobilized through MS4G efforts.

Important notes for interested bidders:

This RFA is released on November 23, 2022, on CATALYZE website, interested bidders can access the RFA by clicking the link below:

https://catalyze-procurement.com/wp-content/uploads/2022/11/RFA-CATALYZE-217772-Ethiopia-2022-0051.pdf

Attachments can be found by visiting the CATLAYZE procurement website the Current Opportunities – My CMS (catalyze-procurement.com)

If potential applicants have any questions, queries, or clarifications, they may forward them to the following email address before the date stated on the cover page of this RFA:

EthiopiaMS4G.procurement@thepalladiumgroup.com.

Answers will be shared through an amendment to this RFA. We are kindly inviting the applicants to send their expression of interest in participating in the conference related to this RFA through an email

1. Rolling submissions are evaluated through December 2022, or until available funding has been allocated to qualified applications ethiopiams4g.procurement@thepalladiumgroup.com
2. Late questions will not be accepted and entertained.
3. Virtual/In-person bidder’s conference: November 30, 2022, from 2:00 PM to 3:00 PM, Nairobi time (UTC +3).
4. Submission: CATALYZE MS4G requires that applications be submitted electronically (e-mailed) to ethiopiams4g.procurement@thepalladiumgroup.com on Rolling submissions evaluated through December 2022, or until available funding has been allocated to qualified applications
5. Late bid submissions will not be considered.

Issuance of this RFA does not constitute an award commitment on the part of CATALYZE MS4G, nor does it commit CATALYZE MS4G to pay for any costs incurred in the preparation and submission of an application. Further, CATALYZE MS4G reserves the right to reject any or all applications received. Applications are submitted at the risk of the Applicant, and all preparation and submission costs are at the Applicant's own expense