This Fund is a successor fund of the first EIB microfinance fund financed under the Cotonou Agreement. It will be established for the purpose of making equity and equity-related investments in regulated microfinance institutions(MFIs), small business banks (SBBs) and non-bank financial institutions (NBFIs) that deliver financial products and services to micro-entrepreneurs, small businesses or other underserved markets in Sub-Saharan Africa (SSA) and Asia.
Objectives
This operation aims to meet the objectives of the Cotonou Agreement for the eradication of poverty by supporting the improvement in the quality, availability and accessibility of financial services and the development of modern financial institutions and sustainable microfinance operations.
The key strategic objectives of the operation are:
Medium and long-term equity support for commercially viable microfinance institutions that meet rigorous eligibility criteria;
Support for the financial sector, indirectly, by investing through this Fund in MFIs, SBBs and NBFIs;
Provision of credit to micro and small enterprises through the financial intermediaries targeted by the Fund.
As such it is one of a series of EIB operations that are running concurrently in the microfinance sector. These include equity, direct lending and technical assistance to microfinance investment vehicles, banks, microfinance and microinsurance institutions.
Environmental analysis according to guidelines acceptable to the Bank will be part of the Fund’s due diligence process in the appraisal of investee companies.
Procurement
Not applicable.
Status
Signed
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21/12/2009.
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The data provided on this page is therefore indicative and cannot be considered to represent official EIB policy (see also the Explanatory notes).
The EIB is committed to open communication and encourages constructive stakeholder input regarding its activities. Enquiries and comments concerning the EIB’s involvement in a project or the financing facilities, activities, organisation and objectives of the EIB, can be sent to the EIB Infodesk.
Alternatively, the EIB can be contacted through its external offices.
Queries regarding details of a specific project, in particular when it is under appraisal by the EIB, should preferably be addressed directly to project promoters.
The EIB has a zero tolerance policy on fraud or corruption. To report allegations of fraud and corruption relating to EIB-financed projects, please contact the Fraud and Investigation division. All complaints will be treated as strictly confidential and handled in line with the EIB investigation procedures and the Anti-Fraud Policy.
The EIB is committed to achieving the highest possible level of transparency. The EIB Transparency Policy sets out how the EIB discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations.
