supporting responsible microfinance
DESCRIPTION
proparco sectorial brochureTRANSCRIPT
Supporting responsiblemicrof inance
whether the management team and shareholders
are prepared to take effective measures to solve
such problems. As a minor shareholder, lender or
guarantor, the structure of the shareholding is a
key criterion for PROPARCO in its decision-making.
All partners must share the same approach to
microfi nance in order to support the development
of responsible fi nancing.
its institutionalization. It also allocated a $ 4M loan to fi nancethe institution’s growth and allowit to serve more clients.By fi nancing the developmentof the Cambodian institution, PROPARCO is helping to boost economic growth in the country through its support for the creation and development of micro-activities.It is expected that Amret will help maintain or create some 20 000 jobs, including 83% for women. ■
its policy to diversify its rangeof fi nancial products.Today, the association is focusing on developing rural solidarity microfi nance, individual loans and home loans, as well as loans to support micro-enterprise start-ups. This includes training support services for its clients in management and marketing. ■
CAMBODIASupporting a majormicrofi nance player
The lack of market depth in Cambodia is a stumbling block in fi nancing micro-enterprises which, however, make up the bulk of the economic fabric. Most of them consequently resort to microfi nance institutions. Amret is one of the biggest players in terms of client numbers (over 225 000) and the size of its network in rural and semi-rural areas.In 2009, the institution allocateda total of € 40M of loans.In 2008, PROPARCO invested € 1.4M in Amret’s capital increase in order to actively support
MOROCCODeveloping microfi nance
Al Amana is one of Morocco’s leading microfi nance associations. Since it was founded in 1997, it has allocated two million loans to the most low-income populations, particularly women. It has consequently helped create 120 000 jobs. At the end of 2009, Al Amana had a microfi nance portfolio of nearly 2.7 billion dirhams (€ 240M) with over400 000 clients.In 2007, in order to meet strong demand for its products, the association shored up its equity via a 100 million dirham (€ 9M) subordinated loan that it obtained from Société Générale Marocaine de Banques thanks to a PROPARCO guarantee. Al Amana was consequently able to pursue
© É
lodi
e Pa
rent
São Paulo
LagosAbidjan
Casablanca
Nairobi
Johannesburg
Beijing
Bangkok
New Delhi
Paris
Tunis
Cairo
OUR OBJECTIVES
PROPARCO’s fi rst aim in supporting the micro-
fi nance sector is to meet the needs of the large
number of local micro-entrepreneurs. It achieves
this by supporting the development of MFIs ope-
rating in areas or markets where the risk-reward
ratio is too high for traditional players. This can,
for example, involve a project for an MFI start-up or
support for a risky strategy change. Although the
fi rst criterion when making a decision to fi nance a
project is its developmental impact, this is syste-
matically combined with a positive constraint: its
fi nancial profi tability.
PROPARCO sits on the Boards of Directors of its par-
tners and can consequently give advice in terms of
governance, environmental and social issues and
the fi ght against money laundering and fi nancing
terrorism.
PROPARCO actively participates in debates on mi-
crofi nance, particularly as an active member of
CGAP (Consultative Group to Assist the Poor). It
conducts capitalization research in partnership
with AFD and CGAP: the issue of its magazine
Private Sector and Development devoted to micro-
fi nance is an example of the fruit of such research.
OUR VALUES
PROPARCO pays close attention to MFI strategies
in terms of their profi tability targets. It does not
allocate fi nancing to highly-profi table institutions
if this profi tability stems from overbilling clients.
It also ensures that their fi nancial management
is rigorous, transparent and healthy. PROPARCO
is extremely demanding in terms of the require-
ment to integrate “best practices” for environmen-
tal and social issues and the fi ght against money
laundering.
All these points are assessed throughout the in-
vestment appraisal process. If major problems are
identifi ed, the opportunity to invest will hinge on
PROMOTING RESPONSIBLE MICROFINANCE
model as a socially responsible local bank seeking to combine transparency, effectiveness and profi tability. Following the extension of its business area, PROPARCO allocated two successive € 10M fi nancings to this key partner, the fi rst in equity, the second in subordinated notes. This investment aims to promote access to credit and savingsfor those that are excluded from the classic banking system. ■
German-based ProCredit Group has built up one of the leading microfi nance networks comprising twenty-two subsidiaries located in emerging and developing countries, particularly Africa(4 banks), Latin America (7 banks) and Eastern Europe (11 banks). Its core mission is to provide a range of productive credit and other banking services to micro, small and medium-sized enterprises, as well as to private clients with low and modest incomes. ProCredit’s innovative approach is shaped by its business
© P
asca
l Fel
lous
MULTI-COUNTRY Supporting a microfi nance network – a leader on three continents
MOTING OM RESPONSIBLE MICROFINANCE
Debateand capitalization
The 3rd issue of the magazinePrivate Sector & Development – a bimonthly magazine published by PROPARCO – is devoted to microfi nance. “What are the best practices for fi nancial management and governance? What priorities must MFIs set in order to maintain their social mission?”. This issue presentsthe different opinions of experts on the topic.
Issue n° 3 of the magazine “What balance between fi nancial sustainability and social issuesin the microfi nance sector?”is available atwww.proparco.fr ■
ACCESS TO CREDIT FOR ALL:A PRIORITY SECTOR
The vast majority of populations in many countries
are excluded from the banking system. Yet access
to fi nancial services is a core factor in improving
the standard of living of the poorest. It makes them
less vulnerable by giving them the opportunity to
become entrepreneurs.
Microfi nance has helped build a banking system
that gives poor populations access to fi nancial
services. Profi table and regulated microfi nance
institutions have now become recognized and sus-
tainable models in terms of the fi nancial services
they provide to populations that had previously
been deprived of access to them.
PROPARCO is a major player in fi nancing develop-
ment generated by the private sector and helps
structure fi nancial systems in order to promote ac-
cess to credit for all.
PROPARCO’s operations are complementary to
those of Agence Française de Développement. It
fi nances sound players seeking to start or develop
their activity: microfi nance institutions (MFIs), hol-
ding companies and funds.
PROPARCO’s business area now covers four conti-
nents. It has offi ces in Africa (Johannesburg, Lagos,
Nairobi and Abidjan), the Mediterranean (Casa-
blanca, Tunis, Cairo), Asia (Beijing, Bangkok and
New Delhi) and Latin America (São Paulo). Thanks
to this local presence, PROPARCO can work closely
with its partners and remain fully up to date with
local issues.
CCESS TO CREDIT FOR ALL:CCERIORITY SECTORPR
whether the management team and shareholders
are prepared to take effective measures to solve
such problems. As a minor shareholder, lender or
guarantor, the structure of the shareholding is a
key criterion for PROPARCO in its decision-making.
All partners must share the same approach to
microfi nance in order to support the development
of responsible fi nancing.
its institutionalization. It also allocated a $ 4M loan to fi nancethe institution’s growth and allowit to serve more clients.By fi nancing the developmentof the Cambodian institution, PROPARCO is helping to boost economic growth in the country through its support for the creation and development of micro-activities.It is expected that Amret will help maintain or create some 20 000 jobs, including 83% for women. ■
its policy to diversify its rangeof fi nancial products.Today, the association is focusing on developing rural solidarity microfi nance, individual loans and home loans, as well as loans to support micro-enterprise start-ups. This includes training support services for its clients in management and marketing. ■
CAMBODIASupporting a majormicrofi nance player
The lack of market depth in Cambodia is a stumbling block in fi nancing micro-enterprises which, however, make up the bulk of the economic fabric. Most of them consequently resort to microfi nance institutions. Amret is one of the biggest players in terms of client numbers (over 225 000) and the size of its network in rural and semi-rural areas.In 2009, the institution allocateda total of € 40M of loans.In 2008, PROPARCO invested € 1.4M in Amret’s capital increase in order to actively support
MOROCCODeveloping microfi nance
Al Amana is one of Morocco’s leading microfi nance associations. Since it was founded in 1997, it has allocated two million loans to the most low-income populations, particularly women. It has consequently helped create 120 000 jobs. At the end of 2009, Al Amana had a microfi nance portfolio of nearly 2.7 billion dirhams (€ 240M) with over400 000 clients.In 2007, in order to meet strong demand for its products, the association shored up its equity via a 100 million dirham (€ 9M) subordinated loan that it obtained from Société Générale Marocaine de Banques thanks to a PROPARCO guarantee. Al Amana was consequently able to pursue
© É
lodi
e Pa
rent
São Paulo
LagosAbidjan
Casablanca
Nairobi
Johannesburg
Beijing
Bangkok
New Delhi
Paris
Tunis
Cairo
OUR OBJECTIVES
PROPARCO’s fi rst aim in supporting the micro-
fi nance sector is to meet the needs of the large
number of local micro-entrepreneurs. It achieves
this by supporting the development of MFIs ope-
rating in areas or markets where the risk-reward
ratio is too high for traditional players. This can,
for example, involve a project for an MFI start-up or
support for a risky strategy change. Although the
fi rst criterion when making a decision to fi nance a
project is its developmental impact, this is syste-
matically combined with a positive constraint: its
fi nancial profi tability.
PROPARCO sits on the Boards of Directors of its par-
tners and can consequently give advice in terms of
governance, environmental and social issues and
the fi ght against money laundering and fi nancing
terrorism.
PROPARCO actively participates in debates on mi-
crofi nance, particularly as an active member of
CGAP (Consultative Group to Assist the Poor). It
conducts capitalization research in partnership
with AFD and CGAP: the issue of its magazine
Private Sector and Development devoted to micro-
fi nance is an example of the fruit of such research.
OUR VALUES
PROPARCO pays close attention to MFI strategies
in terms of their profi tability targets. It does not
allocate fi nancing to highly-profi table institutions
if this profi tability stems from overbilling clients.
It also ensures that their fi nancial management
is rigorous, transparent and healthy. PROPARCO
is extremely demanding in terms of the require-
ment to integrate “best practices” for environmen-
tal and social issues and the fi ght against money
laundering.
All these points are assessed throughout the in-
vestment appraisal process. If major problems are
identifi ed, the opportunity to invest will hinge on
PROMOTING RESPONSIBLE MICROFINANCE
model as a socially responsible local bank seeking to combine transparency, effectiveness and profi tability. Following the extension of its business area, PROPARCO allocated two successive € 10M fi nancings to this key partner, the fi rst in equity, the second in subordinated notes. This investment aims to promote access to credit and savingsfor those that are excluded from the classic banking system. ■
German-based ProCredit Group has built up one of the leading microfi nance networks comprising twenty-two subsidiaries located in emerging and developing countries, particularly Africa(4 banks), Latin America (7 banks) and Eastern Europe (11 banks). Its core mission is to provide a range of productive credit and other banking services to micro, small and medium-sized enterprises, as well as to private clients with low and modest incomes. ProCredit’s innovative approach is shaped by its business
© P
asca
l Fel
lous
MULTI-COUNTRY Supporting a microfi nance network – a leader on three continents
MOTING OM RESPONSIBLE MICROFINANCE
Debateand capitalization
The 3rd issue of the magazinePrivate Sector & Development – a bimonthly magazine published by PROPARCO – is devoted to microfi nance. “What are the best practices for fi nancial management and governance? What priorities must MFIs set in order to maintain their social mission?”. This issue presentsthe different opinions of experts on the topic.
Issue n° 3 of the magazine “What balance between fi nancial sustainability and social issuesin the microfi nance sector?”is available atwww.proparco.fr ■
ACCESS TO CREDIT FOR ALL:A PRIORITY SECTOR
The vast majority of populations in many countries
are excluded from the banking system. Yet access
to fi nancial services is a core factor in improving
the standard of living of the poorest. It makes them
less vulnerable by giving them the opportunity to
become entrepreneurs.
Microfi nance has helped build a banking system
that gives poor populations access to fi nancial
services. Profi table and regulated microfi nance
institutions have now become recognized and sus-
tainable models in terms of the fi nancial services
they provide to populations that had previously
been deprived of access to them.
PROPARCO is a major player in fi nancing develop-
ment generated by the private sector and helps
structure fi nancial systems in order to promote ac-
cess to credit for all.
PROPARCO’s operations are complementary to
those of Agence Française de Développement. It
fi nances sound players seeking to start or develop
their activity: microfi nance institutions (MFIs), hol-
ding companies and funds.
PROPARCO’s business area now covers four conti-
nents. It has offi ces in Africa (Johannesburg, Lagos,
Nairobi and Abidjan), the Mediterranean (Casa-
blanca, Tunis, Cairo), Asia (Beijing, Bangkok and
New Delhi) and Latin America (São Paulo). Thanks
to this local presence, PROPARCO can work closely
with its partners and remain fully up to date with
local issues.
CCESS TO CREDIT FOR ALL:CCERIORITY SECTORPR
whether the management team and shareholders
are prepared to take effective measures to solve
such problems. As a minor shareholder, lender or
guarantor, the structure of the shareholding is a
key criterion for PROPARCO in its decision-making.
All partners must share the same approach to
microfi nance in order to support the development
of responsible fi nancing.
its institutionalization. It also allocated a $ 4M loan to fi nancethe institution’s growth and allowit to serve more clients.By fi nancing the developmentof the Cambodian institution, PROPARCO is helping to boost economic growth in the country through its support for the creation and development of micro-activities.It is expected that Amret will help maintain or create some 20 000 jobs, including 83% for women. ■
its policy to diversify its rangeof fi nancial products.Today, the association is focusing on developing rural solidarity microfi nance, individual loans and home loans, as well as loans to support micro-enterprise start-ups. This includes training support services for its clients in management and marketing. ■
CAMBODIASupporting a majormicrofi nance player
The lack of market depth in Cambodia is a stumbling block in fi nancing micro-enterprises which, however, make up the bulk of the economic fabric. Most of them consequently resort to microfi nance institutions. Amret is one of the biggest players in terms of client numbers (over 225 000) and the size of its network in rural and semi-rural areas.In 2009, the institution allocateda total of € 40M of loans.In 2008, PROPARCO invested € 1.4M in Amret’s capital increase in order to actively support
MOROCCODeveloping microfi nance
Al Amana is one of Morocco’s leading microfi nance associations. Since it was founded in 1997, it has allocated two million loans to the most low-income populations, particularly women. It has consequently helped create 120 000 jobs. At the end of 2009, Al Amana had a microfi nance portfolio of nearly 2.7 billion dirhams (€ 240M) with over400 000 clients.In 2007, in order to meet strong demand for its products, the association shored up its equity via a 100 million dirham (€ 9M) subordinated loan that it obtained from Société Générale Marocaine de Banques thanks to a PROPARCO guarantee. Al Amana was consequently able to pursue
© É
lodi
e Pa
rent
São Paulo
LagosAbidjan
Casablanca
Nairobi
Johannesburg
Beijing
Bangkok
New Delhi
Paris
Tunis
Cairo
OUR OBJECTIVES
PROPARCO’s fi rst aim in supporting the micro-
fi nance sector is to meet the needs of the large
number of local micro-entrepreneurs. It achieves
this by supporting the development of MFIs ope-
rating in areas or markets where the risk-reward
ratio is too high for traditional players. This can,
for example, involve a project for an MFI start-up or
support for a risky strategy change. Although the
fi rst criterion when making a decision to fi nance a
project is its developmental impact, this is syste-
matically combined with a positive constraint: its
fi nancial profi tability.
PROPARCO sits on the Boards of Directors of its par-
tners and can consequently give advice in terms of
governance, environmental and social issues and
the fi ght against money laundering and fi nancing
terrorism.
PROPARCO actively participates in debates on mi-
crofi nance, particularly as an active member of
CGAP (Consultative Group to Assist the Poor). It
conducts capitalization research in partnership
with AFD and CGAP: the issue of its magazine
Private Sector and Development devoted to micro-
fi nance is an example of the fruit of such research.
OUR VALUES
PROPARCO pays close attention to MFI strategies
in terms of their profi tability targets. It does not
allocate fi nancing to highly-profi table institutions
if this profi tability stems from overbilling clients.
It also ensures that their fi nancial management
is rigorous, transparent and healthy. PROPARCO
is extremely demanding in terms of the require-
ment to integrate “best practices” for environmen-
tal and social issues and the fi ght against money
laundering.
All these points are assessed throughout the in-
vestment appraisal process. If major problems are
identifi ed, the opportunity to invest will hinge on
PROMOTING RESPONSIBLE MICROFINANCE
model as a socially responsible local bank seeking to combine transparency, effectiveness and profi tability. Following the extension of its business area, PROPARCO allocated two successive € 10M fi nancings to this key partner, the fi rst in equity, the second in subordinated notes. This investment aims to promote access to credit and savingsfor those that are excluded from the classic banking system. ■
German-based ProCredit Group has built up one of the leading microfi nance networks comprising twenty-two subsidiaries located in emerging and developing countries, particularly Africa(4 banks), Latin America (7 banks) and Eastern Europe (11 banks). Its core mission is to provide a range of productive credit and other banking services to micro, small and medium-sized enterprises, as well as to private clients with low and modest incomes. ProCredit’s innovative approach is shaped by its business
© P
asca
l Fel
lous
MULTI-COUNTRY Supporting a microfi nance network – a leader on three continents
MOTING OM RESPONSIBLE MICROFINANCE
Debateand capitalization
The 3rd issue of the magazinePrivate Sector & Development – a bimonthly magazine published by PROPARCO – is devoted to microfi nance. “What are the best practices for fi nancial management and governance? What priorities must MFIs set in order to maintain their social mission?”. This issue presentsthe different opinions of experts on the topic.
Issue n° 3 of the magazine “What balance between fi nancial sustainability and social issuesin the microfi nance sector?”is available atwww.proparco.fr ■
ACCESS TO CREDIT FOR ALL:A PRIORITY SECTOR
The vast majority of populations in many countries
are excluded from the banking system. Yet access
to fi nancial services is a core factor in improving
the standard of living of the poorest. It makes them
less vulnerable by giving them the opportunity to
become entrepreneurs.
Microfi nance has helped build a banking system
that gives poor populations access to fi nancial
services. Profi table and regulated microfi nance
institutions have now become recognized and sus-
tainable models in terms of the fi nancial services
they provide to populations that had previously
been deprived of access to them.
PROPARCO is a major player in fi nancing develop-
ment generated by the private sector and helps
structure fi nancial systems in order to promote ac-
cess to credit for all.
PROPARCO’s operations are complementary to
those of Agence Française de Développement. It
fi nances sound players seeking to start or develop
their activity: microfi nance institutions (MFIs), hol-
ding companies and funds.
PROPARCO’s business area now covers four conti-
nents. It has offi ces in Africa (Johannesburg, Lagos,
Nairobi and Abidjan), the Mediterranean (Casa-
blanca, Tunis, Cairo), Asia (Beijing, Bangkok and
New Delhi) and Latin America (São Paulo). Thanks
to this local presence, PROPARCO can work closely
with its partners and remain fully up to date with
local issues.
CCESS TO CREDIT FOR ALL:CCERIORITY SECTORPR
CUSTOMIZED FINANCIAL SOLUTIONSPROPARCO is a development fi nance institution jointly held by Agence
Française de Développement (AFD) and public and private shareholders
from the North and South. The company has a mandate to galvanize pri-
vate investment in emerging and developing countries with the aim of
supporting growth, sustainable development and the achievement of the
Millennium Development Goals (MDGs).
PROPARCO was founded thirty years ago on the conviction that the
private sector is a key player in development. It tripled its capital in 2008.
PROPARCO fi nances investments that are economically viable, socially
equitable, environmentally sustainable and fi nancially profi table. It tailors
its sectoral strategy to the level of development of each country and
focuses on productive sectors, fi nancial systems, infrastructure and priva-
te equity investment. PROPARCO invests in a vast geographical area that
encompasses both the major emerging countries and the poorest coun-
tries, particularly Africa. The company has extremely high requirements in
terms of social and environmental responsibility.
PROPARCO offers a full range of fi nancial products tailored to the needs
of private investors in developing countries (loans, equity, guarantees and
fi nancial engineering). In 2009, PROPARCO invested 1.1 billion euros in
eighty projects in over thirty countries.
that are traditionally neglected (microfi nance, agriculture, new energies, health, education...). The fund has a €50M annual investment target over a 5 year period. Unit amounts range between €1M and €10M andcan be coupled with fi nancingfor technical assistance. FISEA aims to be a leverfor economic growth inthis region. ■
FISEA A new equity fi nancing solution in Sub-Saharan Africa
FISEA is an investment fund that takes equity participations in businesses, banks, microfi nance institutions and investment funds operating in Sub-Saharan Africa.Set up in Paris in 2009, the fundis hosted by Agence Françaisede Développement and managed by PROPARCO. FISEA aims to be complementary to traditional private fundsand focuses on investments that carry a higher risk in unstable or post-crisis regions. It makes small investments in sectors
www.proparco.fr
151, rue Saint - Honoré
75001 Paris
Tél. : +33 1 53 44 31 08
Fax : +33 1 53 44 38 38
PROPARCO offers a range of fi nancial products
tailored to the diversity of statuses and regulatory
environments. These products, which allow it to
take a higher level of risk than traditional investors,
are also designed to support MFIs throughout their
development. PROPARCO also advises MFIs on how
to structure their fi nancing.
■ Equity investments: PROPARCO always acquires
minority stakes which are destined to be transfer-
red after a 7 to 8 year period when the business
or MFI has reached a level of maturity that allows
it to raise capital on the markets and seek private
investment. PROPARCO makes both equity and
quasi-equity investments: capital, preferential sha-
res, convertible bonds or participative loans.
© Pascal Fellous
© P
aul K
abré
ph. c
ouve
rtur
e ©
Nic
olas
For
nag
e
PROPARCO also takes equity stakes in investment
funds. In Sub-Saharan Africa it supports the crea-
tion and development of regional funds dedicated
to fi nancing MFIs and SMEs. It offers a wide range
of equity products – particularly via the Investment
and Support Fund for Businesses in Africa (FISEA).
■ Loans: PROPARCO tailors its medium and long-
term loans to the depth of each market. It offers
senior, junior, mezzanine or subordinated loans
ranging between €3M and €100M. Maturities vary
between 5 and 15 years depending on project re-
quirements.
These loans can be denominated in euros, dollars
or local currency.
■ Products in local currency: PROPARCO offers
guarantees or direct loans in local currency in order
to mitigate the exchange risk. It provides – through
its signature – a guarantee of solvency which can
take several forms:
■ Guarantees for bond issues or other
market products;
■ Guarantees for interbank loans;
■ Guarantees for loans in local currency.
Bérengère Basset
CONTACT
Élodie Parent
Amélie July
A dedicated team:
Supporting responsiblemicrof inance
N°BV
QI :
PEFC
/10-
31-1
086.
Impr
imé s
ur du
papie
r iss
u de f
orêt
s géré
es du
rable
ment
. Im
prim
erie d
e Pith
iviers
- Ma
quet
te :
Vince
nt C
ollin
OMIZEDSTO FINANCIAL SOLUTIONS
CUSTOMIZED FINANCIAL SOLUTIONSPROPARCO is a development fi nance institution jointly held by Agence
Française de Développement (AFD) and public and private shareholders
from the North and South. The company has a mandate to galvanize pri-
vate investment in emerging and developing countries with the aim of
supporting growth, sustainable development and the achievement of the
Millennium Development Goals (MDGs).
PROPARCO was founded thirty years ago on the conviction that the
private sector is a key player in development. It tripled its capital in 2008.
PROPARCO fi nances investments that are economically viable, socially
equitable, environmentally sustainable and fi nancially profi table. It tailors
its sectoral strategy to the level of development of each country and
focuses on productive sectors, fi nancial systems, infrastructure and priva-
te equity investment. PROPARCO invests in a vast geographical area that
encompasses both the major emerging countries and the poorest coun-
tries, particularly Africa. The company has extremely high requirements in
terms of social and environmental responsibility.
PROPARCO offers a full range of fi nancial products tailored to the needs
of private investors in developing countries (loans, equity, guarantees and
fi nancial engineering). In 2009, PROPARCO invested 1.1 billion euros in
eighty projects in over thirty countries.
that are traditionally neglected (microfi nance, agriculture, new energies, health, education...). The fund has a €50M annual investment target over a 5 year period. Unit amounts range between €1M and €10M andcan be coupled with fi nancingfor technical assistance. FISEA aims to be a leverfor economic growth inthis region. ■
FISEA A new equity fi nancing solution in Sub-Saharan Africa
FISEA is an investment fund that takes equity participations in businesses, banks, microfi nance institutions and investment funds operating in Sub-Saharan Africa.Set up in Paris in 2009, the fundis hosted by Agence Françaisede Développement and managed by PROPARCO. FISEA aims to be complementary to traditional private fundsand focuses on investments that carry a higher risk in unstable or post-crisis regions. It makes small investments in sectors
www.proparco.fr
151, rue Saint - Honoré
75001 Paris
Tél. : +33 1 53 44 31 08
Fax : +33 1 53 44 38 38
PROPARCO offers a range of fi nancial products
tailored to the diversity of statuses and regulatory
environments. These products, which allow it to
take a higher level of risk than traditional investors,
are also designed to support MFIs throughout their
development. PROPARCO also advises MFIs on how
to structure their fi nancing.
■ Equity investments: PROPARCO always acquires
minority stakes which are destined to be transfer-
red after a 7 to 8 year period when the business
or MFI has reached a level of maturity that allows
it to raise capital on the markets and seek private
investment. PROPARCO makes both equity and
quasi-equity investments: capital, preferential sha-
res, convertible bonds or participative loans.
© Pascal Fellous
© P
aul K
abré
ph. c
ouve
rtur
e ©
Nic
olas
For
nag
e
PROPARCO also takes equity stakes in investment
funds. In Sub-Saharan Africa it supports the crea-
tion and development of regional funds dedicated
to fi nancing MFIs and SMEs. It offers a wide range
of equity products – particularly via the Investment
and Support Fund for Businesses in Africa (FISEA).
■ Loans: PROPARCO tailors its medium and long-
term loans to the depth of each market. It offers
senior, junior, mezzanine or subordinated loans
ranging between €3M and €100M. Maturities vary
between 5 and 15 years depending on project re-
quirements.
These loans can be denominated in euros, dollars
or local currency.
■ Products in local currency: PROPARCO offers
guarantees or direct loans in local currency in order
to mitigate the exchange risk. It provides – through
its signature – a guarantee of solvency which can
take several forms:
■ Guarantees for bond issues or other
market products;
■ Guarantees for interbank loans;
■ Guarantees for loans in local currency.
Bérengère Basset
CONTACT
Élodie Parent
Amélie July
A dedicated team:
Supporting responsiblemicrof inance
N°BV
QI :
PEFC
/10-
31-1
086.
Impr
imé s
ur du
papie
r iss
u de f
orêt
s géré
es du
rable
ment
. Im
prim
erie d
e Pith
iviers
- Ma
quet
te :
Vince
nt C
ollin
OMIZEDSTO FINANCIAL SOLUTIONS