BOP2 VFMFI

active

 The proposed investment under the umbrella of the Base of the Pyramid Two (BOP2) Platform, consists of a three-year senior unsecured deliverable Ethiopian Biir (ETB) loan of up to US$30 million equivalent in local currency (LCY) to Visionfund Microfinance Institution S.C. (the “Borrower”, “VFMFI” or “The MFI”), split as follows: (i) up to US$20 million on IFC own account, and (ii) up to US$10 million syndicated from parallel lenders. The use of proceeds of the IFC loan will be to on-lend to informal businesses and micro-enterprises in Ethiopia particularly women-owned business (at least 40% of the use of proceed) to help preserve and sustain low-income jobs (the “Project”). Subject to approval, the Project will be supported by a pooled first loss guarantee (“PFLG”) of up to US$40 million provided by International Development Association’s Private Sector Window Blended Finance Facility (IDA-PSW BFF) allocated to the BOP Envelope under the MSME Finance Platform, as well as IDA-PSW Local Currency Facility (LCF) in the form of a cross-currency swap.