Summary of Proposed Investment
Project Number
7327
Company Name
INTERNATIONAL FINANCE CORPORATION
Date SPI Disclosed
Nov 8, 1995
Country
World Region
Industry
other
Status
Completed
Sector
Fund Management Company
Department
Risk Mgmt. and Financial Policy
Environmental Category
FI
Previous Events
Approved : Dec 11, 1995
Signed : Mar 4, 1996
Invested : Jun 28, 1996
Project Description
Summary Of Project Information (SPI)
| Project Name | IFC/GEF Small and Medium Scale Enterprise Program |
| Region | Global |
| Sector |
Projected Board DateDecember 8, 1995
Company NameN/A
Technical Partner and/or Major Shareholders
Institutions experienced in working with Small and/or Medium Scale Enterprise (“SMEs”) will be selected to act as Intermediaries for the Program. These Intermediaries will have experience either in the financing of SME activities or in the design and management of environmental projects, or both.
Project Cost Including proposed IFC investment
$4.3 million (100% GEF funding)
Location of project and Description of site
Global
Description of Company and Purpose of Project
The Global Environment Facility (“GEF”)has provided US$4.3 million to this experimental program with the intention of stimulating greater involvement of private small and medium scale enterprises in addressing two of the GEF objectives - preserving biodiversity and reducing greenhouse gas emisssions. IFC is the GEF “executing agency” for this program which has been approved by the GEF Council. The four to five institutions to be selected by IFC as Intermediaries will receive a minimum of US$ 500,000 to a maximum of US$ 1,000,000 from the Program. The form of financing that the Program will provide to the Intermediaries is a long term low interest rate loan (ten years at 2 - 3% p.a.). The proceeds from these loans will be used by the Intermediaries to provide either debt or equity to eligible SMEs on terms which may feature longer maturities and lower interest rates than are available in the local commercial financial markets. The financing provided to any one SME Project by an Intermediary will be reviewed by IFC to ensure equivalence to with the "incremental cost" incurred by the SME in carrying out the proposed GEF eligible activity. The SMEs which receive financing will vary in size and the amount of Program funding that will be provided by the Intermediaries to any one SME will also vary accordingly - for example, from a minimum of approximately US$ 20,000 up to US$ 250,000 per project.
It is anticipated that the Program funds will be used to finance a wide range of projects, including; carbon sequestration, energy efficiency and alternative energy initiatives (which address the GEF greenhouse gas reduction objectives)as well as sustainable forestry, eco-tourism and the harvesting of non-timber products from forests and wildlands (representing the GEF biodiversity objectives).
Environmental Category and Issues
This is an environmental review category FI project. The Intermediaries selected to participate in the program will be required to undertake an environmental review of each sub-project’s compliance with host country environmental, health and safety requirements as well as applicable World Bank policies and guidelines. Prior to approval of a loan to an Intermediary, IFC will assess its capability to carry out environmental reviews.
| Date SPI sent to PIC | November 8, 1995 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 676-0365
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