The project, which involves the collaboration of several international agencies and development finance institutions, is led by KfW Entwicklungsbank. The project will be managed by Symbiotics S.A., an investment manager specialized in microfinance. REGMIFA will be funded by issuing up to 3 classes of shares and up to 2 classes of notes. Within each class of shares, several tranches may be issued at different times and at different terms. Initially, the investors will include KfW, IFC, EIB, FMO, AFD/Proparco, AECID, BMZ, BIO, NMI, OeEB.

The total project cost at time of first closing is estimated at $100 million. IFC plans to invest up to $8 million in mezzanine B shares and up to $5 million in cross currency swaps (loan equivalent exposure).

13.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management	5.0
Guarantee
Loan	8.0
Equity	0.0

* These investment figures are indicative

REGMIFA will be domiciled in Luxembourg and will make investments across Sub-Saharan Africa.

The project is expected to contribute to employment creation and poverty reduction in Sub-Saharan Africa. Specifically, it will contribute to the development and growth of the microfinance sector in the region and enable better access to finance for an estimated 100,000 micro and small businesses over the next five years. The project will also contribute to the establishment of microfinance as an asset class, which will encourage further private sector financing being provided to the sector.

IFC has played a key role in the design of REGMIFA. IFC's microfinance experience and technical expertise in structuring investment vehicles has enabled best practices to be incorporated and reflected in the structure of the fund. Additionally, IFC will be providing a unique value add by helping the fund to hedge its currency exposures.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. During appraisal, IFC analyzed the activities proposed to be supported with IFC financing for types of transactions, size, tenor and industry sectors and determined as 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 as the Applicable Performance Requirements the IFC Microfinance Exclusion List and the applicable National Social and Environmental Laws and regulations. The Fund will be required to designate responsible, qualified staff and develop a Social and Environmental Management System (SEMS), prior to commitment and satisfactory to IFC, that ensures all investee institutions of the Fund have adequate procedures in place to screen against the IFC Micro-Finance Exclusion List and the National Social and Environmental Laws and regulations and are in compliance with the labor standards established by the IFC Performance Standard 2: Labor and Working conditions, were applicable. REGMIFA will also be required to commit to implement the SEMS, to ensure that its investments are in compliance with the Applicable Performance Requirements, and submit a periodic report to IFC as per a format to be provided by IFC.