42221 - SLGP RSF Sogesol

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Summary of Investment Information

Project Number

42221

Company Name

SOGESOL

Date SPI Disclosed

Apr 17, 2019

Country

Haiti

Region

Latin America and the Caribbean

Projected Board Date

May 17, 2019

Environmental Category

FI-2 - Limited

Status

Pending Disbursement

Last Updated Date

Nov 19, 2025

Department

Regional Industry FIG LAC & EUR

Industry

Financial Markets

Previous Events

Approved : Apr 12, 2018
Signed : Mar 24, 2021

Sector

Microfinance and Small Business - Non Commercial Banking

Additional Project Attributes

Blended Finance

Project Description

The proposed project consists of an up to US$ 5 million equivalent risk sharing facility ('RSF') with Société Générale de Solidarité S.A. (Sogesol) on a portfolio of up to US$10 million equivalent. The project will support Sogesol in increasing its lending to small enterprises in the country, including agri-enterprises in Haiti.

The project is part of IFC’s Small Loan Guarantee Program which provides risk sharing instruments to client financial institutions looking to expand SME lending in difficult to serve markets. SLGP is supported by the IDA18 IFC-MIGA Private Sector Window’s Blended Finance Facility (PSW-BFF), which was created by the Word Bank Group to catalyse private sector investment in IDA countries, with a focus on fragile and conflict-affected states. PSW BFF support enables IFC to rapidly roll out a program of SME risk sharing facilities to reach segments facing serious market failures which IFC could not otherwise serve.

Associated Advisory Engagement

The project will be complemented with an advisory service program to provide operational and technical support to help Sogesol scale origination in the targeted SME segment.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	216.0
Loan
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Guarantee	Loans to SME Borrowers

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

The project is expected to have strong development impact in terms of: (1) supporting the growth of the productive sectors of the Haitian economy by expanding and increasing access to finance to small enterprises. The SME finance forum estimated that the total credit gap in Haiti amounts to almost US$2.5 billion, with 49% of MSMEs reporting that they are either under or unserved by financial institutions. (2) promoting growth in agribusiness, a key economic sector representing 22% of GDP. It is estimated that only 28% of farmers have bank accounts and 19% received a credit for agricultural purposes. (3) strengthening the Haitian financial sector's competitiveness through capacity building, demonstration and replication channels.

IFC's additionality is both financial and non-financial: (1) financing structure, which entails the provision of an efficient and replicable risk mitigation tool, and (2) knowledge sharing and capacity building through an advisory engagement leveraging IFC's global knowledge in risk sharing facilities and the microfinance sector and thereby contributing to increasing access to financial services for small enterprises and agri-enterprises across Haiti.

E&S Category Rationale / Risks and Mitigation

This project has been categorized as an FI-2 in accordance with IFC's Environmental and Social Review Procedure. The proposed investment consists of a risk-sharing facility of up to US$ 10 million with Sogesol, a subsidiary of Sogebank in Haiti, on a portfolio of eligible Small and Medium Enterprises (SMEs) loans. Sogesol’s current SME portfolio entails primarily (70%) exposures to the trade of consumer goods (finished goods such as textile, food and beverage, automotive parts, and IT/phone accessories), while the remainder of the exposures is to client activities such as agriculture (livestock raising, production, and processing), construction, services (including schools), hospitality (restaurant and small hotels), and transport of people. Approximately 70% of the clients have 10 or less employees. The overall portfolio includes largely activities that have limited potential environmental or social risks or impacts and where there are risks, these are few in number, generally site specific, largely reversible, and readily addressed through mitigation measures. For this project, Sogesol will be required to screen the eligible loans against the IFC Exclusion List and the environmental and social laws and regulations of Haiti.

The key E&S risks and impacts derive from the capacity of Sogesol to identify and manage the potential environmental and social risks associated with its lending activities to a portion of its SME portfolio, which typically have low to medium social risks (labor and working conditions such as contributions to social security and medical insurance; OHS risks such as lack of occupational training, use of personal protective equipment, and tracking accidents; lack of emergency preparedness planning; and driver safety) and environmental risks (such as waste management, effluent treatment, and disposal of hazardous materials). As part of this investment, Sogesol will be required to develop and implement a procedure for evaluating the E&S risks of eligible loans to support SMEs to ensure compliance with the applicable environmental and social requirements and to continue its commitment to applying good labor and working conditions within its own operations.

S.no	Title	Anticipated Completion Date	Status
1	Nominate officers	04/30/2019	Completed
3	Formalize procedures	04/30/2019	Completed
6	Staff Training	05/30/2019	Completed
7	S&E systems in investee institutions	05/30/2019	Completed
9	Other1 - Life & fire safety	07/29/2019	Completed

Contacts

For Inquiries About the Project, Contact

Société Générale de Solidarité S.A. (Sogesol)
Daphne Louissaint
Chief Executive Officer
+509 28 15 58 01
dlouissaint@sogebank.com
Angle Rues Darguin et Geffrard, Petionville
https://www.sogebank.com/accueil/sogesol/

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IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

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This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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