MIRA INFORM REPORT

Report No. :	487379
Report Date :	27.01.2018

IDENTIFICATION DETAILS

Name :	REGIDESO
Registered Office :	Avenue de la Science No.3, Rohero, B P 660, Bujumbura
Country :	Burundi
Date of Incorporation :	22.06.1962
Com. Reg. No.:	113/1962
Legal Form :	State Corporation
Line of Business :	Subject is registered to operate management of electricity and drinking water supply
No. of Employees :	350

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
Burundi	B2	B2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

BURUNDI - ECONOMIC OVERVIEW

Burundi is a landlocked, resource-poor country with an underdeveloped manufacturing sector. Agriculture accounts for over 40% of GDP and employs more than 90% of the population. Burundi's primary exports are coffee and tea, which account for more than 60% of foreign exchange earnings. Thus, Burundi's export earnings - and its ability to pay for imports - rest primarily on favorable weather conditions and international coffee and tea prices, although exports are a relatively small share of GDP. Burundi is heavily dependent on aid from bilateral and multilateral donors. Foreign aid represented 48% of Burundi's national income in 2015, one of the highest percentages in Sub-Saharan Africa, but decreased to 33.5% in 2016. Burundi joined the East African Community (EAC) in 2009.

The 1993-2005 civil war resulted in more than 200,000 deaths, forced more than 48,000 refugees into Tanzania, and displaced 140,000 others internally. Political stability, aid flows, and economic activity improved following the war’s end, but underlying weaknesses – low governmental capacity, a high poverty rate, poor educational levels, a weak legal system, a poor transportation network, and overburdened utilities – have prevented the implementation of planned economic reforms. Government corruption has also hindered the development of a private sector. The purchasing power of most Burundians has decreased as wage increases have not kept pace with inflation.

In 2015, Burundi’s economy suffered from political turmoil, including street protests and an attempted coup, following President NKURUNZIZA’s controversial announcement that he would run for a third term. Insecurity and refugee flows to neighboring countries slowed down economic activity and donors withdrew aid, increasing Burundi’s budget deficit and decreasing hard currency reserves. Real GDP growth dropped precipitously and has yet to recover to pre-conflict levels.

Source : CIA

SUBJECT'S NAME
Registered Name:	REGIDESO
Requested Name:	REGIDESO
Other Names:	None
ADDRESS AND TELECOMMUNICATION
Physical Address:	Avenue de la Science No.3, Rohero,
Postal Address:	B P 660
	Bujumbura,
Country:	Burundi
Phone:	257-22221218/22222720/22225119
Fax:	257-22221218
Email:	info@regideso.bi
Website:	www.regideso.bi
CREDIT OPINION
Financial Index as of December 2017 shows subject firm with a medium risk of credit. However, bank and credit information obtained reveal a history of prompt payments.
LEGAL
Legal Form:		State Corporation
Date Incorporated:		22-June-1962
Reg. Number:		113/1962
Nominal Capital		BIF. 1,000,000
Subscribed Capital		BIF. 1,000,000
Subscribed Capital is Subscribed in the following form:
		Position		Shares
Jéroboam Nzikobanyanka		MD
RELATED COMPANIES
None		Parent company.
None		Subsidiary company.
None		Affiliated company.
None		Shareholder of subject firm.
None		Branches of the firm
OPERATIONS
Registered to operate management of electricity and drinking water supply
Imports:		Asia
Exports:		None
Trademarks:		None
Terms of sale:		100% tenders
Main Customers:		General Public
Employees:		350 employees.
Vehicles:		Several motor vehicles.
Territory of sales:		Burundi
Location:		Owned premises, 50,000 square feet,
AUDITORS AND INSURANCE
Auditors:		Information not available.
Insurance Brokers:		Information not available.
FINANCE
Currency Reported:		Burundin Franc (BIF.)
Fiscal Year End:		December 31, 2017
Inflation:		According to information given by independent sources, the inflation at December 31st, 2017 was of 13%.
Financial Information not Submitted
Profit and Loss (expressed in BIF.)
			2017
Sales			11,850,000,000
BANK
Bank Name:		Banque de la République du Burundi
Branch:		Burundi
Comments:		None
TRADE REFERENCES
Experiences:		Good
NOTARIAL BONDS		None
COMMENTS / ADDITIONAL INFORMATION
This information was obtained from outside sources other than the subject company itself and confirmed the above subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.64
UK Pound	1	INR 89.32
Euro	1	INR 78.45
BIF	1	INR 0.036

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	SYL

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.