SBDF is a not for profit non-government organization (NGO) and as such has no shareholders. It is controlled by a Board which is led by its founding member Mr. Gafoor, Chairman and owner of Gafson Industries – one of the largest corporate groups in Guyana. There is an active board consisting of individuals which have a business background and are respected within the local market. SBDF reports on its financial performance on an annual and monthly basis to the Central Bank even though it is not regulated by them.

IFC’s investment would consist of a senior convertible loan of an amount equivalent to US$300,000 in Guyana Dollars.

0.30 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	0.30
Equity

* These investment figures are indicative

SBDFT is based in Georgetown, Guyana. The company has a branch office each in Parika and West Coast of Berbice.

The development impact of IFC’s financing to Small Business Development Finance Trust is expected to be high, as it will support productive microenterprises and employment generation. Given the company’s average loan size of approximately $900, IFC’s financing is expected to enable SBDFT to provide over 2,000 loans during the life of the project. The beneficiaries of these loans will be low-income micro entrepreneurs, many of them women. A number of SBDF’s new clients are based in rural areas and providing credit to them is expected to help increase food production for local as well as the export market.

For 2008, the institution projects a 94% portfolio growth and a 50% increase in the number of clients; hence, the project will be instrumental in SBDFT achieving these targets.

The proposed facility would help the Trust to diversify its funding base, allowing it a greater access to funding from institutional investors and financial institutions. This will help SBDFT to increase the volume of long term local currency financing to micro entrepreneurs, whose income is predominantly GYD denominated, while maintaining the institution’s maturity mismatch within reasonable limits. Note that the company’s loan portfolio duration is expected to increase from 12 months, as of 2007, to 18 months in 2008.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. During appraisal, IFC analyzed the FI portfolio and the activities proposed to be supported with IFC financing for types of transactions, size, tenor and industry sectors and determined the Applicable Performance Requirements based on an analysis of the potential Social and Environmental risks associated with the FI portfolio and considering IFC’s investment. The Applicable Performance Requirements are The IFC Microfinance Exclusion List and The applicable National Social and Environmental Laws and regulations.

IFC will also review, if required, the capacity of the FI to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). If required, IFC will suggest Supplemental Actions to address any gaps in the SEMS. Based on the review, the project will be required to:

- Develop an, or upgrade, if necessary, any existing Social & Environmental Management System (SEMS), prior to disbursement to the satisfaction of IFC;
- Identify responsible, qualified persons to manage and implement the SEMS;
- Commit to implement the SEMS, to ensure that its investments/activities supported by IFC financing are in compliance with the Applicable Performance Requirements;
- Submit a periodic report to IFC as per a format to be provided by IFC.