Lok II is sponsored by Lok Foundation, a New York based not-for-profit corporation dedicated to providing long-term technical assistance to the Indian Microfinance sector. The funds of the Company will be deployed through Lok Advisory Services Private Ltd., (“LAS”), a New Delhi based advisory company intended to facilitate the investment activities of the Company.

The project is a proposed equity commitment of up to $15 million, not to exceed 20% of the Company’s total commitments.

15.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	15.0

* These investment figures are indicative

The Company will be based in Mauritius but all investments will be made in microfinance companies based in India. LAS, at present, is based in Gurgaon in the state of Haryana in India.

The proposed investment is expected to have the following development impact: i) increase access to finance by reaching low-income families through MFIs, ii) provide goods and services to low-income families by investing in companies that serve the BoP, iii) build institutional capacity through technical assistance, and iv) support the growth of the microfinance sector.     

IFC is expected to have the following additionality:
(i) Catalyze fund raising - IFC''s support will put a stamp of approval and allow the Company to reach a viable first closing;
(ii) Terms & governance - IFC will play a critical role in shaping terms and governance along international best practice;
(iii) Demonstration effect - IFC''s support of Lok II and active participation on the Company''s Investor Panel will ensure best practice corporate governance at the Company and investee level;
(iv) E&S standards - IFC will help disseminate robust environment and social practices at the investee level;

This project involves IFC support for the business of Microfinance and has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. Lok is an existing client of IFC and has an SEMS in place. Considering the nature of activities supported, the project will be required to:
· Upgrade, if needed, the existing SEMS, prior to commitment, that is satisfactory to IFC, and that ensures that all its investments are screened and processed to avoid supporting activities on the Microfinance exclusion list;
· Identify qualified persons to manage and implement the procedure;
· Commit to establish a similar screening process to avoid supporting activities on the IFC Microfinance Exclusion List in the investee MFIs;
· Demonstrate commitment and resources to implementing the procedure;
· Demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions; and
· Submit a periodic report to IFC as per a format to be provided by IFC.