Release date: 28 April 2009
Promoter – Financial Intermediary
US Financial InstitutionLocation
Description
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.
Sector(s)
Proposed EIB finance (Approximate amount)
Up to USD 15 million.
Total cost (Approximate amount)
USD 100 million.
Environmental aspects
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 - 21/12/2009
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).