IFC proposes to invest in FINCA Microfinance Holdings (“FMH”), a holding company to be established by FINCA International (“FINCA”), a US based public charity owning and operating one of the largest microfinance networks in the world, with 21 affiliates in 21 countries. The proposed project will support increased outreach, the transformation of FINCA’s non-profit credit only microfinance institutions (“MFIs”) into regulated and licensed deposit-taking institutions, strengthen their institutional capacity, support the implementation of banking systems and technology that will be suitable for a growing organization and expand the MFIs’ ability to provide services in poorer IDA countries, such as Haiti and Malawi and post-conflict countries such as Kosovo and Democratic Republic of Congo. FINCA’s objective with the creation of the holding company is to establish a platform to access capital from socially responsible investors on a long term basis to achieve the ends outlined above. FMH will support the FINCA network by: (i) strengthening FINCA globally, (ii) preserving and building network value, (iii) expanding access to capital markets, and (iv) increasing access to equity capital in order to support growth and outreach, strengthen institutional capacity and accelerate the transformation of its affiliates into deposit taking institutions. FMH will be founded through a partnership between FINCA and a group of international investors that have been strong supporters of FINCA and microfinance through the years. FINCA is establishing this holding company, and will continue to operate its network on a double bottom line basis of social outreach and sustainability, with a reasonable financial return to investors. No FINCA directors, executives or employees will be permitted to profit personally from or hold any equity interests in these investments.