SG agrees Faso Coton deal

Société Générale (SG) has signed a €8mn (US$11mn) pre-export deal for African cotton producer, Burkina’s Faso Coton (FC).

The short-term deal is split into two distinct sections; the first tranche is for the refinancing of the harvesting of cotton, while the second tranche is dedicated to refinancing the planting of crops.

SG has financed FC for four years and this latest deal comes at a key time for West Africa’s cotton production, as Olivier de Muizon, managing director for structured commodity finance at Société Générale tells GTR: “For West Africa, the cotton industry is really important because it is a sector where many people work ,and cotton is the heart of the economy, especially in Burkina Faso.

“The quality of our relationship with Faso Coton has permitted them to get through the crisis more easily and after five difficult years for Faso Coton, that they are happy with the renewal.”