FATEN - NASIRA PORTFOLIO
Status: Approved 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
Faten (Palestine for Credit and Development) started as a program under Save the Children in 1995 and was spun-off in 1999 into a not-for-profit company with a mission to serve the financial needs of low- and middle-income Palestinian entrepreneurs and individuals. It became licensed and monitored by the Palestine Monetary Authority in 2014 and is currently the largest microfinance institution in the West Bank and Gaza commanding a market share of ~50%, ~26,000 active borrowers and an outstanding portfolio worth ~USD 150m.
What is our funding objective?
We offer Faten additional funds to support its portfolio growth in the West Bank and Gaza, especially towards women, young people and refugees. We also offer a risk sharing facility to support M/SMES loan portfolio growth in Gaza specifically.
Why do we fund this investment?
FMO will be providing one of the largest loans to Faten, while also providing long-term financing which is still scarce in Palestine. FMO's funds will be partly earmarked to finance women, young people and refugees therefore contributing to reduced inequalities (SDG 10).
What is the Environmental and Social categorization rationale?
The project has been categorised as Category C in accordance with FMO’s Sustainability Policy. The Project’s activities are deemed to have minimal or no adverse environmental and social risks and/or impacts. As part of the Project, Faten will be required to apply the EDFI Exclusion List and Palestine's E&S laws and regulations.
More investments
| Date | Total FMO financing |
|---|---|
| 6/6/2023 | USD 0.20 MLN |
- Region
- Asia
- Country
- The Palestinian Territories
- Sector
- Financial Institutions
- Publication date
- 10/18/2022
- Effective date
- 6/6/2023
- Total FMO financing
- USD 4.55 MLN
- Funding
- FMO NV
-
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