Microfinance operations aim to foster employment-generating activities by promoting and improving access to finance, focusing mainly on Microfinance Institutions (MFIs) in the Southern Neighbourhood.
Selected intermediaries will serve in particular micro- and small enterprises, alongside low-income persons, and they will include newly created and existing MFIs, credit unions/cooperatives, banks wishing to downscale their operation to serve smaller businesses and other financial institutions, including microfinance investment funds/companies.
The EIB will pay special attention to Non-Governmental Organisations (NGOs) transforming into commercial entities, and to greenfield as well as existing institutions, which aim to expand their portfolios of microloans. The EIB may also invest in Microfinance Investment Vehicles (MIVs) with the purpose of on-lending to microfinance service providers.
The EIB offers:
- long-term debt financing
- equity and quasi-equity financing
- subordinated loans and guarantees
Instruments will be designed on a case-by-case basis and depending on the requirements of the selected intermediaries and the characteristics of the relevant local market.
More about EIB’s microfinance operations