TRM Convertible Loan

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IFC proposes to invest in Tuba Rai Metin (“TRM” or the “Company”), a leading NGO micro finance institution (“NGO MFI”) in Timor-Leste, which provides inclusive financial services primarily to poor rural Timorese women and small businesses. TRM’s mission is to provide Microfinance and allied services for large number of the poor in a sustainable and regulated manner to improve the quality of lives of families and empower women. TRM has 7,513 clients as of December 2012 with a strong gender focus with more than 90 % of the clients being women. On lending side, TRM offers two group loans: small group loans and larger group loans with longer terms. It also offers two individual business loans targeting microenterprises and SMEs. These loans are collateral free with monthly repayments. In addition, it offers motorbike loans, agriculture loans (short-term and long-term), and house improvement loans and is planning to launch energy loans. On deposit side, TRM provides voluntary demand savings account, and compulsory deposit guarantee. It also offers micro insurance. The proposed project intends to support and facilitate the expansion and commercial transformation of TRM into an Other Deposit Taking Institution (“ODTI”) under the new regulation issued by Banco Central de Timor-Leste (“BCTL” or the “Central Bank”) in January 2011 as an entry route for non-regulated MFIs to transform into regulated formal financial institutions.