SEAF is a not-for-profit organization that manages locally-operating, small- and medium-sized business investment funds on a commercially sustainable basis in emerging markets. Historically, SEAF has about $774 million committed in 36 funds worldwide. It has completed more than 398 investments in 25 countries with 241 exits. SEAF currently manages funds in 25 countries.

The target size of the Fund is $20 million, including IFC’s equity commitment of $12 million. In addition, IFC acting as Implementing Entity of the Pilot Program for Climate Resilience (PPCR) will invest up to US$10 million.

12.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	12.0

* These investment figures are indicative

The Fund will be domiciled in Delaware and the investments will be made in businesses in Bangladesh.

IFC’s SME Ventures program focuses on high risk IDA countries where few other sources of financing for small business operate. The program will directly build the local capacity of financial intermediaries to manage sustainable investment funds for small businesses, providing both risk capital and critical advisory assistance.

Only a few financial intermediaries focus on small businesses in higher risk IDA markets. Without the SME Ventures program, the proposed fund would not exist. With it, IFC will attract new managers and build their capacity in underserved IDA countries, provide technical assistance to small businesses with no other sources of assistance, and improve the business enabling environment for SMEs.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.



IFC will analyze SEAF’s expected portfolio for industry sectors and determine the Applicable Performance Requirements, if any, that would include a combination of (i) The IFC Exclusion List; (ii) The applicable National Social and Environmental Laws and regulations; and (iii) The IFC Performance Standards.



IFC will review the capacity of the Fund Manager 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 commitment 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 are in compliance with the Applicable Performance Requirements; and

Submit a periodic report to IFC as per a format to be provided by IFC.



Additionally IFC will review the implementation and performance of the Fund’s SEMS for the first three projects, prior to the Fund’s investment, to ensure that the SEMS is robust.