Financing Instruments

Call for Proposals

CFCs approach is flexible and can be adapted to

meet the need of individual type of project.

CFC solicits proposals through Open Call which are

issued every six months with deadlines in April &
October.

CFC mainly finances projects in the form of loans and

guarantees.
CFC supports interventions along the value chain
directed towards:
Pre-harvest productivity and quality improvement;
Post-harvest
marketing;

processing,

value

addition

and

Market expansion and diversification;

Trade finance facilitation and price risk management.

Common Fund for Commodities

Proponents should present verifiable information on

the projected economic, social and environmental
impact along the value chain as well as for the larger
market system and commodity sector.

Criteria for Proposals

Applicants should:
Operate in commodity value chains in CFC member
countries;
Have a proven track record of at least three years,
evidenced by (audited) financial statements;
Provide matching funds at least equal to 50% of the
total cost of project to execute the project, coming
from own contributions and other financiers;

The Common Fund for Commodities (CFC) is an

autonomous intergovernmental financial institution,
established in 1989 within the framework of the United
Nations. Its Headquarters are in Amsterdam, The
Netherlands.

Present clear financial projections, specifying the

assumptions and demonstrate the capability for
repayment;

CFCs mission is to promote the development of the

commodity sector and to contribute to sustainable
developments in its three dimensions i.e. social,
economic and environmental. CFC contributes to
poverty alleviation enhancing economic wellbeing.

Demonstrate development impact measured by

variable indicators, which:
increase income in the project region;
generate new jobs, and/or expand number of
farmers/beneficiaries being reached by project.

The Common Fund for Commodities has financed

commodity development projects for more than two
decades, using the value chain approach as guiding
principle.

Eva Teekens
Project Manager &
Investment Analyst
Operations Unit

Type of Financing

After Approval

Term Loans

After approval by the Executive Board, financing and

guarantee agreements will be signed containing the
Terms and Conditions of the CFC financing.

Loan amount between USD 300,000 and USD

1,500,000 (or EUR equivalent);
Loan period up to seven years with maximum grace
period of two years;
Collateralized with pledge/mortgage over fixed
assets and/or with third party (or Government)
guarantees;
Members of the Consultative Committee

Approval Procedure
Each submitted application is screened for
completeness and compliance with minimum criteria
as given in the Open Call.
The proposals meeting the set criteria are evaluated
by the Funds expert Consultative Committee (CC).
Proposals positively reviewed by the Consultative
Committee, are finalized and submitted to the
Executive Board for final approval.
The financial and legal due diligence and, possibly,
a term sheet may be finalized and discussed with
the project proponents before final approval by the
Executive Board.
The Executive Board may approve the proposal,
reject it or set additional covenants.
The approval process normally takes approximately
six months.

Indicative interest rate normally between 5% and

10% depending on CFCs risk assessment and
local market rates.
Equity in impact investment funds and other
forms of impact financing

For disbursement of the CFC financing the

agreement(s) need(s) to be duly signed between the
CFC and related project parties. Conditions precedent
need to be fulfilled. These normally include a legal
opinion on the compliance and effectiveness of the
CFC agreements under the law and regulations of the
country of the applicant.
CFC requires regular reporting on the agreed
indicators.
In the event that the loan cannot be made operational
within two years after the approval of the Executive
Board, the CFC may have to cancel its commitment

Equity amount between USD 300,000 and USD

1,500,000 (or EUR equivalent);
Minority stakes only;
Clear exit divestment strategy;
Board representation by a CFC delegate may be
required.
Fast Track financing
For investment activities yielding immediate results
or development of innovative products and services
as a pre-commercial phase;
Loan amounts of a minimum of USD 50,000 up to
a maximum of USD 120,000 (or EUR equivalent);
Flexible financing, repayment
and security
conditions, under a simplified approval procedure.

Details and guidelines for the application form and a

list of CFC member countries can be seen on
www.common-fund.org.
Common Fund for Commodities
Stadhouderskade 55, 1072 AB Amsterdam
P.O. Box 74656, 1070 BR Amsterdam
The Netherlands
Tel: (31 20 ) 575 49 49
E-mail: info@common-fund.org
Website: www.common-fund.org

Trade finance facilitation and price risk management.

February 2016