FIF - FATEN SME Facility Top-Up

signed

Provision of a USD 3.0 million (EUR 2.9 million) package in favor of Palestine for Credit and Development (FATEN), the largest non-profit microfinance institution in the West Bank and Gaza. The package will include two facilities as follows: (i) USD 2.0 million SME facility for on-lending to eligible MSMEs based in the West Bank; and (ii) USD 1.0 million Women in Business (WiB) facility for on-lending to eligible women-led businesses in the West Bank. Both facilities will be structured in a single tranche. The WiB loan will be accompanied by a 20% first-loss risk cover (FLRC) funded by the European Union through its Initiative for Financial Inclusion (Neighbourhood Investment Facility - SEMED Financial Inclusion Programme). The FLRC will be provided for the benefit of FATEN's portfolio of women businesses to encourage FATEN to continue lending to the most underbanked segments of the economy.