SHORECAP II

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.

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.

Not applicable.