MEDICAL CREDIT FUND II COÖPERATIEF
Status: Approved investmentWhy disclosure?
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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
Our client is Medical Credit Fund Coöperatief U.A., a Dutch entity affiliated with the PharmAccess Group, a Dutch NGO with a focus on making inclusive health markets work in sub-Saharan Africa.
What is our funding objective?
The funding objective is to provide a mezzanine tranche behind the equity and junior subordinated debt that catalyzes the senior DFI tranche for this newly established debt fund. Our funds provide a EUR 7.5mln tranche out of the EUR 32.5mln capital stack.
Why do we fund this investment?
We fund this project as it aims to provide financing and technical assistance to about 2,500 SMEs active in the health sector in Sub-Saharan Africa. Such financing is highly additional in these markets and leads to better health in those markets, an essential component for reducing inequalities.
What is the Environmental and Social categorization rationale?
This project is preliminarily categorised as a category B project based on the expected portfolio composition of MCF II. Maximum exposure per client is below the IFC PS TT threshold. Potential E&S risks in the fund’s portfolio are OHS and waste management. Hence, in general, E&S risks are anticipated to be site-specific and addressed through relatively easy mitigation measures. Nevertheless, CDC, Swedfund and FMO did develop an ESAP to enhance the fund’s E&S risk management practices, by including a.o. SafeCare standards, a grievance mechanism and anti-corruption measures.
More investments
| Date | Total FMO financing |
|---|---|
| 12/13/2021 | EUR 5.00 MLN |
- Website customer/investment
- https://www.medicalcreditfund.org/
- Region
- Africa
- Country
- Africa
- Sector
- Financial Institutions
- Publication date
- 9/30/2021
- Effective date
- 12/13/2021
- Total FMO financing
- EUR 2.50 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) - B