AccessHolding was founded in August 2006 by LFS. The initial capital of the company is set at €18 million. In addition to IFC and LFS, the shareholders of AccessHolding include the European Investment Bank, KfW, and Omidyar-Tufts Microfinance Fund OTMF. AccessHolding has invested in three commercial microfinance banks in Azerbaijan, Madagascar, and Mozambique, all of which are managed by its technical partner LFS. The company plans to make at least seven further investments over the next four years. Investment activity will be initially concentrated in Sub-Saharan Africa and Central Asia, and then expanded to other regions. Portfolio MFIs will be developed through a combination of equity finance, management, and TA services. Over time, AccessHolding will transform from an investment holding company into a controlling parent company of a global network of MFIs with a common brand identity. LFS was founded in 1997 as a consultancy firm with a focus on commercialization of micro and small business finance in developing and transition economies. It is a private limited liability company under German corporate law, owned by three individual shareholders. The majority of its assignments are on behalf of IFIs such as IFC, KfW, European Bank for Reconstruction and Development, and the African Development Bank, as well as technical co-operation agencies such as the Department for International Development. LFS has built a considerable track record in managing microfinance portfolios and institutions. Since its inception, LFS has implemented more than 50 projects in 30 countries, building up lending portfolios in the order of magnitude of more than $200 million. LFS’s portfolio of current long-term projects includes management service contracts with the three current AccessHolding investee banks (Micro Finance Bank of Azerbaijan, Socremo Banco de Microfinanças SA in Mozambique, and AccèsBanque Madagascar) as well as a downscaling project in Tajikistan. Other recently completed long-term assignments include downscaling projects in Uzbekistan and Serbia, and an upgrading project in Mongolia.

The proposed investment package amounts to up to $3 million in an equity investment and a local currency loan.

2.98 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	2.20
Equity	0.79

* These investment figures are indicative

ABT will be based in Dar Es-Salam, Tanzania.

The developmental impact of ABT is expected to be far reaching in terms of its economic support for productive micro-entrepreneurs, small businesses, and SMEs, employment generation, and the provision of access to finance to underserved segments.

IFC's investment in ABT, sponsored by Access Holding, will send positive signals to investors and local banks, to support the microfinance sector. Through this project, IFC will support a greenfield microfinance institution in its growth strategy, and enable it to operate commercially with a wide funding base.

This project involves IFC’s support for micro and small business lending and has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. ABT is supported under the AccessHolding PF (#25565) facility, sponsored by AccessHolding, an IFC investee company (#24633). As part of IFC''s investment in the holding company, AccessHolding has already committed to establish a Social & Environmental Management System (SEMS) for each microfinance institution in which it invests, which includes screening against the IFC Microfinance Exclusion List.

In line with this prior commitment, ABT will set up its SEMS prior to disbursement, ensuring that all its investments are screened and processed to avoid supporting activities on the IFC Microfinance Exclusion List, will appoint and maintain an Environment Manager, will demonstrate commitment and dedicate resources to implementing the procedures, will take action to remedy any gaps in implementation on an ongoing basis, and will report to IFC in the form of an Annual Environment Performance Report.