RIF II

active

IFC proposes an investment of up to €10 million in Rural Investment Fund II (RIF II), representing up to 20% of the total equity of a global fund- a 10 year hybrid fund. The fund size is €100 million, financed with share capital from a number of DFIs and commercial investors and senior debt financed from commercial sources. RIF II will invest in equity, quasi-equity (totaling €45 million) and senior loans (€55 million) of microfinance institutions (MFIs), primarily in IDA and IDA blend countries, and have a rural focus. The fund’s manager, Incofin Investment Management (Incofin IM), a limited partnership, and the General Partner –Incoteam- are known to IFC from IFC’s earlier investment in RIF I- the first global microfinance investment vehicle targeting rural MFIs. RIF II, as in RIF I, has a double bottom-line approach to screening and assessing MFIs, putting equal emphasis on financial risk analysis and social/environmental risk analysis. Indeed, in addition to the usual financial criteria such as financial structure, risk management, strategy, market outlook, RIF II will emphasize outreach, environment and corporate social responsibility, human resources, and quality of customer services.