ADVANS SA SICAR II

Participation in the capital increase of Advans SA, a microfinance investment company managed by Horus Development Finance. Advans SA’s investment objective is to provide commercial and social returns on microfinance investments in existing and greenfield microfinance institutions (MFIs) located predominately in Africa. The company provides financing in the form of equity in MFIs, as well as debt and guarantees for existing investments. Since its creation in 2005, Advans SA has realised four investments in Cambodia, Cameroon, Ghana and DRC and plans to invest in Asia and Africa, with the ultimate goal of achieving a diversified portfolio of 9 to 10 investments by 2011.

The strategic objectives that will be achieved through this operation are:

• Improved access to financial services for underserved individuals in developing countries through newly created MFIs. The institutions invested by Advans provide savings and loans to economically active individuals and micro and small enterprises.
• Improved entrepreneurship and support to the private sector through MSE loans, local recruitments and training provided by Advans.

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.

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