Guilgal Issue 1: 5.5% Bond
£3,800 (on average) will provide microfinance to a client
Guilgal provides financial and nonfinancial services to low-income individuals, groups and businesses in the DRC
50 - 80 - microfinance clients will benefit
Guilgal will be able to reach approximately 50 - 80 clients with £250,000 raised from this issue
Guilgal SA's mission is to provide loans to micro and small entrepreneurs who have limited access to traditional financial services. It was founded in 2012 by Frederic Kalala Tshimpaka, PhD who wrote his PhD dissertation on the Congolese MFI market and worked in the sector for the World Bank and the German government.
Guilgal's vision is to grow to become a leader in green microfinancing in the DRC, and to become a benchmark for other microfinance institutions.
About Guilgal SA
Key product information
Issuer: Guilgal SA
Issuing Country: Democratic Republic of the Congo
Investment target: £250,000
Minimum investment: £50
Maximum investment: No maximum
Maturity: 24 months
Expected interest rate: 5.5% per annum
Withholding tax rate: 20% (applicable to UK residents who do not invest within an IF ISA)
Interest payment frequency: 6 monthly
Capital repayment: 6 monthly
Financial instrument: Promissory note / interest bearing bond
This is a bond issued by a single company (rather than a saving product) and therefore it is recommended that you are careful with the amount you invest.
You must read the offer document (provided below) where a statement of risks is presented, particularly in section 5 – Risk Analysis Overview
What the project investment will enable
Every £3,800 invested in this project will enable Guilgal to provide microfinance to one new client. In total, the project will enable the company to provide microfinance to 50 to 80 clients.
Guilgal's mission is to provide financial and nonfinancial services to low-income individuals, groups and businesses in the DRC, especially small traders, promoters of bankable projects and farmers in order to contribute significantly and sustainably to the improvement of their living conditions, while preserving the environment.
Guilgal has introduced products with an environmental benefit and is seeking to develop this portfolio. These are Green Energy Credit, providing financing for the installation of solar panels and related equipment for income generating use or as home improvement financing; and, Green Agri Credit: providing technical assistance alongside agri loans to train clients on clean techniques and inputs for the environment.
Guilgal is committed to ethical practices as mandated by the microfinance regulation, and is a member of two important networks that encourage good practice: MAIN network (Microfinance African Institutions Network), and ANIMF (National Association of Microfinance Institutions).
The company aims to raise £250,00 from this bond issue and will use the funds to reach approximately 50 to 80 clients.
With almost 10 years of operations, Guilgal is one of the pioneering microfinance companies in the DRC, and is mainly active in rural areas where access to finance is otherwise limited. The company has 7 branches and is currently opening 3 more, with a total headcount of over 300 people.
Sustainable Development Goals
Microfinance is reaching people without access to financial services, enabling them to invest in their businesses, to improve their quality of life and to weather economic shocks better. (60 Decibels Microfinance Index - https://60decibels.com/)
Guilgal microfinance helps clients to help themselves, delivering impacts in line with the United Nations Sustainable Development Goals
Over 50% of Guilgal's clients are women
Decent Work and Economic Growth
The majority of Guilgal's loans are directed towards income generating activities
Guilgal is primarily active in rural areas where people have very limited access to financial services
Guilgal microfinance has supported businesses that are delivering impact on the UN Sustainable Development Goals to protect the environment and prevent climate change. Guilgal's Green Energy Credit and Green Agri Credit products are accelerating these impacts
Affordable and Clean Energy
Guilgal's Green Energy Credit provides financing for the installation of solar panels and related equipment for income generating use or as home improvement financing
Guilgal's Green Agri Credit provides technical assistance alongside agri loans to support sustainable practices
Responsible Consumption and Production
Guilgal microfinance has helped one client to significantly expand his business manufacturing paving stones and other products from waste plastic