49630
VisionFund Microfinance Institution (S.C)
Apr 17, 2025
Ethiopia
Africa
May 31, 2025
FI-3 - No Impact
Active
Sep 14, 2025
Regional Industry - FIG Africa
Financial Markets
Approved : Jun 26, 2025
Signed : Aug 18, 2025
Invested : Sep 12, 2025
Microfinance and Small Business - Non Commercial Banking
Blended Finance
The proposed investment under the umbrella of the Base of the Pyramid Two (BOP2) Platform, consists of a three-year senior unsecured deliverable Ethiopian Biir (ETB) loan of up to US$30 million equivalent in local currency (LCY) to Visionfund Microfinance Institution S.C. (the “Borrower”, “VFMFI” or “The MFI”), split as follows: (i) up to US$20 million on IFC own account, and (ii) up to US$10 million syndicated from parallel lenders. The use of proceeds of the IFC loan will be to on-lend to informal businesses and micro-enterprises in Ethiopia particularly women-owned business (at least 40% of the use of proceed) to help preserve and sustain low-income jobs (the “Project”). Subject to approval, the Project will be supported by a pooled first loss guarantee (“PFLG”) of up to US$40 million provided by International Development Association’s Private Sector Window Blended Finance Facility (IDA-PSW BFF) allocated to the BOP Envelope under the MSME Finance Platform, as well as IDA-PSW Local Currency Facility (LCF) in the form of a cross-currency swap.
The investment is expected to be complemented by a technical assistance package which aims to support VFMFI in its strategic business planning including transformation roadmap to a bank and responsible finance.
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