Long-term Public Investor CDC responded early on to contribute to the national effort to mitigate the effects of COVID 19 on the economy and SMEs. This initiative was announced as one of the measures advocated by the Head of Government.
These measures should drain more than 700 MD, which will be distributed on three essential axes:
• A 100 MD health line dedicated to financing the needs of hospital services in medical devices.
• A fund of 500 MD (Mezzanine and Equity) dedicated to resilient SMEs. This fund will reach a broad category of beneficiaries which covers tickets from 0.1 to 15 MD for (1) SMEs in the portfolios of regional SICARS as well as new investments during the post COVID period extending to the end of the year ; (2) SMEs with strong potential and performing well before COVID 19, despite their unbalanced financial structures and (3) resilient mid-sized businesses with high growth and job creation.
• A relay fund of 100 MD (Cash out in Equity / Cash In in Mezzanine and Equity) dedicated to the repurchases of the participations of Investment Funds and SICARS which will continue their efforts to support SMEs.
Since May 09, 2020, the Ministry of Finance has launched a platform which includes, among other things, these funds, nearly 900 files, to date, have been transferred to the CDC which are currently being examined. Some have been processed and constitute the deal-flow of funds to be transmitted to the Management Companies, others will be the subject of responses to complete the files or to direct them towards more appropriate financing mechanisms.
For all the funds mobilized, the CDC contributes 40% according to its prudential model, the remaining 60% will be raised on the market from national and international donors as well as institutional investors.