VISIONFUND MICROFINANCE INSTITUTION
Status: Completed investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Vision Fund Microfinance Institution (VFMFI) has been in operation since 1999 as a regulated and legally registered Microfinance service provider in Ethiopia. Since then the Institution has been in business to cater services to its clients in the capital and three regional states namely Oromia, Amhara, and SNNPR. The MFI is gearing up with the strategic objective of becoming a large-scale sustainable, rural focused financial institution that makes significant impact on the lives of poor communities through provision of customer oriented credit and saving services.
What is our funding objective?
FMO will guarantee 65% of a USD 4 mln equivalent loan in Ethiopian Birr, obtained by VFMFI from the Commercial Bank of Ethiopia (CBE).
Why do we fund this investment?
By providing the guarantee to VMFI, we are enabling on lending to the rural and women clients. Without FMO’s guarantee, CBE would not provide VFMFI with a loan. The loan will be one of VMFI’s main source of funding for the year to come.
What is the Environmental and Social categorization rationale?
This facility has been categorized as Category C in accordance with FMO’s Sustainability Policy, since VFMFI's total loan portfolio is made up of micro businesses. As part of this facility, VFMFI will be required to apply the EDFI Exclusion List and national E&S laws and regulations.
More investments
| Date | Total FMO financing |
|---|---|
| 12/22/2022 | EUR 0.05 MLN |
- Region
- Africa
- Country
- Ethiopia
- Sector
- Financial Institutions
- Effective date
- 11/13/2018
- End date
- 3/15/2022
- Total FMO financing
- USD 2.60 MLN
- Funding
- MASSIF
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C