The project sponsor is PlaNet Finance (PF). PF was established in October 1998 by Jacques Attali and Arnaud Ventura, respectively its President and Managing Director, as an international non profit organization dedicated to the development and support of the microfinance sector. PF Activities include the following: - IT services for the management of microfinance portfolios; - Capacity Building and Technical Support; - Rating: PlaNet Rating is one of the most recognized rating agencies for MFIs worldwide; and - Financing: PF has established a Revolving Loan Fund which provides loans to newly established MFIs to support their growth and build their credit history. PF already manages a debt fund of about €400,000 to young MFIs. Already more than 30 MFIs have been supported through this fund.

The total project cost for PB is estimated at up to €30 million ($36 million), split as €20 million ($24 million) in equity and €10 million ($12 million) in subordinated debt. The proposed IFC investment is up to €4.0 million ($4.8 million) in equity and up to €2.0 million ($2.4 million) in subordinated debt instruments.

7.52 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	4.73
Equity	2.79

* These investment figures are indicative

The location of PB will be Paris, France. PB will conduct investments globally with an initial focus on Africa followed by an expansion to Central and South America, North Africa, China and India namely.

The proposed project is expected to have a high development impact in the following areas: - Significant Contribution to Economic Development and Financial Intermediation: - Creation of a new institution: IFC’s investment involves the creation of a Greenfield bank holding company dedicated to making equity and quasi-equity investments in either newly-created or existing microfinance companies. - Improved financial infrastructure: Technical assistance from PB and PF to investee MFIs will help them become more efficient providers of quality financial services to clients. The impact is also expected to be significant in deepening financial intermediation. - Significant Contribution to Regulatory and Investment Climate: Improved legal / regulatory climate: PB is also expected to induce the creation of new laws or help modify existing legislations to create a legal framework that fosters easier access to credit for the poor. - Significant Direct Contribution to Poverty Reduction: Extension of finance to previously underserved groups: Small and micro businesses lack adequate sources of funding. IFC’s investment will result in increasing the availability of financial services to this large, underserved group. Supporting productive small businesses will in turn stimulate growth, employment generation and poverty reduction. IFC’s main role lies in facilitating the process of commercialization of the industry. Commercialization enables MFIs to better leverage their equity, increasing their ability to serve significantly more clients, and offer them a wider range of financial products and services. IFC's participation in PlaNet Bank as a lead investor will provide comfort to other investors given its experience in investment structuring and financing of MFIs in emerging markets;

This is an FI type 1 project. PB will be required to ensure that its investee banks have in place an environmental management system for compliance with applicable host country environmental and social requirements and IFC''s microfinance exclusion list.
Location of environmental documents in locally affected community