denotes premium content | Jan 6 2009 
Feature
posted 23 Feb 2005 in Volume 8 Issue 4
CMDT, Mali: Building on a cotton success story
MLA: SG CIB
Borrower: CMDT (Compagnie Malienne pour le Développement des Fibres Textiles)
Deal size: €243.9m ($313.7m)
Co-ordinating bookrunner: Banque de Développement du Mali
Tenor: up to 12 or 15 months
For the fourth year running, SG CIB and Banque de Développement du Mali (BDM) have succeeded in arranging and syndicating the financing for the Malian cotton campaign.
This time round, SG CIB as MLA set up a syndicate of nine African on-shore banks and 15 off-shore banks with its long-term local partner Banque de Développement du Mali (BDM) as co-ordinating bookrunner. The facility finances the 2004-2005 crop of 243,000 tonnes of cotton-lint for state-owned cotton producer CMDT.
“This operation meets all the economic needs of CMDT in terms of amount, currencies (FCFA and euros) and tenors (up to 12 or 15 months), through a highly secured multi-facility structure,” says Sadia Ricke, structured commodity finance, SG CIB. “This includes ‘crédit anticipé’ to allow a very early seed cotton purchase and ‘credit de campagne’ to finance the 2004-2005 crop.
“Thanks to a very attractive risk reward for banks, this transaction was significantly oversubscribed, creating new benchmarks for SG CIB.”
