VisionFund International
Status: Investment in contracting phaseWhy 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 prospective customer?
VisionFund International (‘VFI’) is a global financial institution managing a network of microfinance institutions (MFIs) currently in 24 countries across Africa, Asia, Latin America and the ECA regions. As wholly-owned subsidiary of World Vision International (‘WVI’) - one the world’s largest humanitarian aid, development and advocacy organization - VFI offers micro loans and other financial services for its clients to develop successful businesses, enabling families to grow up healthy and educated. In 2023, VFI's MFI network had over 1 million active borrowers, nearly 70% of them were women and close to 50% of them involved in agriculture.
What is our funding objective?
This transaction will benefit the end clients of VFI’s MFIs and aligns with VFI’s aim to improve the livelihoods of families in underserved and rural areas.
Why do we want to fund this investment?
VFI funds and manages a large network of MFIs in developing countries and is focused on providing access to finance in mainly unserved (rural) areas. The MFIs in VFI’s Africa network are mostly located in rural areas and score high on social performance, but lack the size required to be funded directly by FMO. As impact investor, FMO can play an important role in supporting the growth of these MFIs by providing debt capital to VFI. The FMO financing is focused on supporting longer-term financial access to underserved communities, thereby supporting poverty alleviation and job creation. This investment qualifies for a 100% Reducing Inequalities label on the basis of inclusive growth, the entire MFI loan portfolio is composed of micro-loans.
What is the Environmental and Social categorization rationale?
E&S risk category of this investment is C, which is rather low given the nature of VFI's portfolio with its exclusive focus on microfinance loans hence no particular risk exists. FMO analyses risks from different perspectives and assessments. In the case of microfinance investments, the E&S classification is typically low because the exposure generally is limited to retail and micro-entrepreneurs. The risks that might come with microfinance investments, such as, among others, over-indebtedness, transparency of interest rates, and responsible pricing, are covered by FMO in other assessments such as the Client Protection Principles (CPPs). In case of high contextual risk, a human right assessment can be carried out.
More investments
| Date | Total FMO financing |
|---|---|
| 12/1/2020 | USD 0.11 MLN |
| 5/31/2023 | USD 10.00 MLN |
| 7/12/2018 | EUR 0.25 MLN |
| 2/10/2022 | USD 10.00 MLN |
| 9/21/2024 | USD 15.00 MLN |
- Website customer/investment
- https://www.visionfund.org/
- Country
- Global
- Sector
- Financial Institutions
- Publication date
- 8/22/2024
- Deadline for feedback
- 9/21/2024
- Total FMO financing
- USD 10.00 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