The project sponsors are: (i) IPC (11%); (ii) Doen Foundation (33%); and (iii) IMI (56%); - Internationale Projekt Consult (IPC), the project’s management and technical services provider, was established in 1980, and is one of Germany’s leading international consulting and financial services company specializing in the development and management of microfinance institutions (MFIs). IFC has a global relationship with IPC, and is currently working with IPC in Bosnia, Georgia, Haiti, Moldova and Ukraine, among other countries. - Doen, based in Amsterdam, was created in 1991. It is closely associated with the Dutch Post Code Lottery, and finances initiatives in sustainable development and environmental protection. It is one of Netherlands' leading development cooperation agents in this area. Doen has successfully collaborated with IFC on microfinance projects all over the world – e.g., MEC (Moldova), NovoBanco (Mozambique), MFB (Ukraine), among others. - Founded in 1998 by IPC and its staff, Internationale Micro Investitionen (IMI) is the investment vehicle for IPC-managed micro finance ventures in developing and transition economies. IFC is a shareholder in IMI with a 19.5% equity stake.

The project involves an IFC investment of up to $2.0 million in the form of a credit line of five years to SFE.

2.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	2.0
Equity

* These investment figures are indicative

SFE is headquartered in Quito, Ecuador with 5 branch offices located throughout Ecuador.

This is a Financial Intermediary Type1 project. SFE will be required to develop an environmental management system to cover relevant operations (e.g., project finance, corporate finance). SFE must require that investments under relevant operations meet host country environmental, health and safety requirements. IFC will work with SFE to develop an environmental review capacity. Depending upon IFC''s assessment, environmental training will be required. SFE will be required to provide an annual environmental performance report to IFC.

Location of environmental documents in locally affected community

IFC’s investment in SFE is expected to be strongly developmental -- in terms of its economic impacts, stimulus for business growth, employment generation, confidence-building in the financial sector, and supporting the introduction of commercially-oriented microfinance techniques to Ecuador. Supporting the development of a professionally-managed, reputable microfinance company in Ecuador is particularly important in view of the difficult macro economic environment. In addition to poverty reduction and related impacts within the MSE target group, IFC's involvement in SFE is also expected to: - Encourage replication of commercially-oriented MFIs in the market and downscaling by existing commercial banks to serve MSEs; and - Generate spill-over benefits in the form of trained managers and employees available to other local financial institutions IFC's support of this project, both financial and through knowledge sharing, is key to the successful development of SFE.