- Shareholding: The shareholders of the Company are expected to include La Fayette Participations (LFP), a company incorporated as a “Société par Actions Simplifiée” under the laws of France; Horus a company incorporated under the laws of France; IFC, and other IFIs who have shown a strong interest in the project. Other internationally reputable shareholders may join after the initial closing. - Sponsor: Horus Banque et Finance (“Horus”), a company organized under the laws of France, with its principal place of business in Paris, France, is sponsoring the Company as a way to create a new pool of capital to promote investment in the micro and SME finance sector in developing countries in Africa and Asia. Horus’s mission is to provide technical expertise and know-how in microfinance and retail banking and to implement this expertise in microfinance institutions and microfinance banks. The development of a network of MFIs is consistent with this mission. Horus intends to be one of the “Initial Shareholders” and to increase progressively its equity capital in the Company each year, with a view to eventually becoming a controlling shareholder.

The Company’s initial funding will be up to Euro 15 million, comprising both share capital and subordinated debt. IFC’s investment will be up to Euro 3 million in any combination of either common equity or subordinated debt, total not to exceed 17.5% of the Company’s share capital.

2.18 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	2.18

* These investment figures are indicative

The company will have its administrative and legal domicile in Luxemburg. The company aims to achieve its investment objective principally through the creation of microfinance institutions (“MFIs”) in which the company has invested equity, in Eligible Countries (WBG Part 2 member countries) that are expected to benefit from changing economic, political, and legal environments and from the continuing commercialization of the microfinance industry.

The project is a Category FI type 1 project as classified by IFC’s environmental and social review procedures. The company and any subsequent MFI investments will be required to comply with IFC’s ESR procedures including the establishment of an environment reporting system acceptable to IFC.
Location of environmental documents in locally affected community
The ERS documents will be available at the company’s proposed administrative offices in Luxemburg and at Horus’ offices in Paris.

The project will have a high development impact. Project outcomes are expected to include the following: - Facilitate the long term access of MFIs/microenterprises to sustainable sources of funding.  The current demand of credit by underserved microenterprises in emerging markets far exceeds the funding provided by donors and commercial lenders.  In order to satisfy the demand and unleash the productive capacity of these microenterprises, MFIs need to tap into funding sources to support their expansion.  The Company will enable new and established MFIs to access long term funding. - Foster the integration of microfinance institutions into the formal financial sector.  The company will provide the necessary financial instruments required by MFIs to either commence or to expand existing commercially viable operations. - Diversify the existing IFC model; so as to reach countries and regions which present a continuing challenge, e.g. smaller African countries and/or very low income, frontier markets. The project is in line with the World Bank Group's overall development strategy for the financial sector to reduce poverty by strengthening domestic financial markets, including the support for commercially viable microfinance institutions. It particularly focuses on leveraging IFC’s and donors’ scarce resources to raise commercial funding and pave the way for microfinance institutions to provide access to finance on a commercially sustainable basis to target low income micro and small business populations. The proposed project supports IFC’s objectives to support financial institutions that contribute to a thriving microfinance industry.