MIFA Debt Fund

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The project consists of the establishment of a facility that will increase access to finance to micro-borrowers and low-income households in the Asia region, including East Asia, South Asia, and Central Asia. The proposed facility, the Microfinance Initiative For Asia Debt Fund (“MIFA Fund” or the “Fund”) will: i) offer market-based debt financing – with an emphasis on local currency and longer-term financing – to financial entities serving micro businesses (“microfinance institutions” or “MFIs”), with a focus on reaching smaller and less developed MFIs; ii) help establish microfinance as an asset class with mainstream investors and leverage donor funds with private capital; and iii) support capacity building among financial entities serving micro entities.The project is directly in line with IFC’s microfinance strategy to reach large but underserved markets, including India, Indonesia, Pakistan, and the Philippines. A parallel TA facility will provide capacity building support to the MFIs.