Release date: 1 July 2008
Promoter – Financial IntermediaryBanco ADEMI, Banco ADOPEM, FONDESA and other eligible microfinance institutions in the Dominican Republic (“the intermediaries”).
The facility will provide lines of credit as well as equity and technical assistance to a range of microfinance instititutions in the Dominican Republic. Final beneficiaries will be micro enterprises in the private sector.
The operation intends to promote the growth and support the integration of microfinance institutions in the financial sector with the view of improving access to finance to those enterprises that are excluded from local traditional banking.
Proposed EIB finance (Approximate amount)
The equivalent of EUR 18 million in Dominican Pesos and the equivalent of EUR 2 million in USD to be used to provide lines of credits to the intermediaries. EUR 2 million will be set aside for equity participations in the intermediaries in order to support their growth and/ or potential transformation into regulated institutions.
Total cost (Approximate amount)
The intermediaries will ensure that the projects to be financed will comply with the EIB’s environmental standards. The promoters’ appraisal processes include an environmental review to verify that the projects are in compliance with the relevant national and regional environmental legislation.
Assets to be financed will be procured on a competitive basis taking into account the nature and size of the goods and services to be purchased. The promoters ensure compliance with the Bank’s procurement guidelines when supporting procurement by the final beneficiaries.
Signed - 12/08/2008