The project consists of a subsequent loan investment of up to EUR5 million in Micro Credit Foundation EKI (“EKI”), for on lending to “Eligible Sub-Borrowers”, with a particular focus on loans for housing refurbishment purposes. EKI stands as the third largest and one of the most profitable microfinance institutions (“MFIs”) in Bosnia and Herzegovina commanding approximately 15% of the market share, and having close to 52,000 active loans. EKI’s loans and services are targeted at small businesses, crafts, services and agricultural activities. EKI’s clients are low income households, women, invalids, returnees and persons whose businesses create new jobs or sustain existing ones. As of June 2008, EKI had a loan portfolio of $155.6 million equivalent which has grown 2.5x in the last 3 years, and an equity base of $27.4 million equivalent composed of donated capital and retained earnings. As of that same date, ROAA and ROAE stood at 3% and 16.7% respectively. This project is aimed at complementing IFC’s initial investment in EKI, a EUR$3 million senior loan granted in 2006.