Advans S.A. SICAR (“Advans S.A.” or the “Sponsor”), an IFC strategic partner, is a Venture Capital Investment Company, created in August 2005 by Horus Development Finance together with several development financial institutions: Agence Française de Développement (AFD), the European Investment Bank (EIB), the Netherlands Development Finance Company (FMO), the International Finance Corporation (IFC), KfW Entwicklungsbank (KfW) and CDC Group plc (CDC). Advans SA is incorporated in Luxembourg on the official list of investment companies in risk capital (SICAR) and supervised by the Commission de Supervision du Secteur Financier (CSSF), Luxembourg''s financial supervision authority.

Key shareholders in La Fayette Nigeria are expected to be: Advans S.A. 50.1% and IFC 17.5%, with an additional number of potential international investors.

The investment is expected to comprise approximately $1.2 million in equity and $2.6 million in debt, on IFC’s own account.

3.56 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	2.48
Equity	1.08

* These investment figures are indicative

La Fayette Nigeria will be based in Ibadan, Oyo State, in western Nigeria. The Company seeks to establish 11 branches over the first 5 years of operations. The investment will support the entirety of the Company’s operations.

The Company is expected to help reduce unemployment and poverty in the western state of Oyo by: (i) increasing access to microfinance services; (ii) supporting the development and growth of the local MSME finance sector; and (iii) serving as a role model for good practices in the sector.     

IFC''s expected additionality includes: (i) unique funding package including equity, long term local currency debt and technical assistance funds; (ii) knowledge, expertise and track record in microfinance greenfielding in Africa; and (iii) unique credibility among prospective investors and local banking authorities, built on a significant microfinance program and a recognized commercial orientation.     

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. During appraisal IFC analyzed the FI portfolio and determined the Applicable Performance Requirements, based on an analysis of the potential social and environmental risks associated with the financing provided by La Fayette Nigeria, the Microfinance Exclusion List. IFC also appraised the Environmental and Social Management System (ESMS) proposed to be utilized by the client, the FI’s capacity to implement the same, and its labor practices. The ESMS was found to be satisfactory, and the client is compliant with the PS2 requirements, except for the lack of an anti-sexual harassment policy.

Based on the Applicable Performance Requirements and FI ESMS and capacity review, within six months after IFC’s disbursement, the Project will be required to: (i) designate relevant E&S staff, (ii) adopt the Advans SA Environmental and Social Management System, (iii) develop an anti-sexual harassment policy, and (iv) provide reports on its E&S performance to IFC on an annual basis.