MFP-CFLG GXBANK

active

The proposed investment is an unfunded guarantee facility comprising a 90:10 pari-passu risk sharing on first loss tranche between IFC and GX Bank Berhad (GXBank or the Bank) in Malaysia to support eligible micro, small and medium enterprises (MSME) portfolio of loans to be originated by the Bank, in the amount of up to approximately US$110 million in Malaysian Ringgit (MYR) equivalent. IFC’s maximum exposure under the first loss risk will be up to US$4.95 million in MYR equivalent. IFC’s catalytic investment will provide a de-risking instrument helping the Bank to scale lending to underserved MSMEs, including women-owned MSMEs and self-employed individuals for business purpose loans (the Project). The Project would be processed under IFC’s Catalytic First Loss Guarantee (CFLG) under the MSME Finance Platform, a programmatic approach to scale-up financing for MSMEs in eligible countries.