KIF Loan 2020

pending

International Finance Corporation (“IFC”) is proposing to extend an up to US$5 million senior loan facility with revolving feature, comprising of a loan of up to $2.5 million from IFC’s own account (the “A Loan”) and a loan of up to $2.5 million from IFC in its capacity as the Implementing Entity of the IDA-PSW BFF (the “IDA-PSW BFF Loan”), for a total tenor of up to four years to Kaebauk Investimentu no Finansas, SA (“KIF” or the “Company”). KIF is the largest micro finance institution (“MFI”) in Timor-Leste. The project exhibits strong fit with IFC's and World Bank Group (“WBG”) strategic priority in Timor-Leste to accelerate private-sector led growth in the non-oil economy to drive job creation and inclusion through improved productivity in agribusiness and deepening inclusion. The proceeds will be used by the Company to develop its agri-financing business targeting farmers and supply chain participants in the agri-sector with prioritization to women borrowers.KIF is a valued client of IFC since 2013 and was formerly known as Tuba Rai Metin (“TRM”), a leading non-governmental organization (“NGO”) MFI. The Company went through a transformation to become a regulated MFI during 2013-2016 and after obtaining Other Deposit Taking Institution (“ODTI”) license in Mar-16, KIF was instituted as TRM’s subsidiary and the microfinance operations of TRM were transferred to KIF. IFC had been contributing an instrumental role during the transformation process. The Company provides inclusive financial services primarily to poor rural Timorese women and small businesses, supported by nationwide presence across all TL’s 13 districts and more than 300 employees serving more than 14,000 clients as of December 2019 with a strong gender focus with more than 70 % of the clients being women.