FIF - Vitas Palestine SME loan II

repaying

Provision of a senior MSME loan of up to USD 5.0 million (EUR 4.7 million) in favor of Vitas Palestine for Microfinance Company ("Vitas" or "Vitas Palestine"), a for-profit microfinance institution incorporated in the West Bank. The MSME loan will be structured in two equal tranches (USD 2.5m committed tranche and USD 2.5m uncommitted tranche) and will be utilised by Vitas for on-lending to eligible local MSMEs based in the West Bank. The loan is likely to be accompanied by a 20% first-loss risk cover (FLRC) in the amount of USD 1.0 million (EUR 0.94 million) funded by the European Union through the SEMED Financial Inclusion Program. The FLRC will be in the form of a partial portfolio guarantee in favor of Vitas in order to support lending to MSMEs in the current challenging operating environment.