📋 Tender Overview
Project Number
49630
Company Name
VisionFund Microfinance Institution (S.C)
Date SPI Disclosed
Apr 17, 2025
Country
Ethiopia
Region
Africa
Projected Board Date
May 31, 2025
Environmental Category
FI-3
Status
Pending Approval
Last Updated Date
Department
Regional Industry - FIG Africa
Industry
Financial Institutions
Sector
Microfinance and Small Business - Non Commercial Banking
Additional Project Attributes
Blended Finance
Project Description
The proposed investment under the umbrella of the Base of the Pyramid Two (BOP2) Platform, consists of a three-year senior unsecured deliverable Ethiopian Biir (ETB) loan of up to US$30 million equivalent in local currency (LCY) to Visionfund Microfinance Institution S.C. (the Borrower , VFMFI or The MFI ), split as follows: (i) up to US$20 million on IFC own account, and (ii) up to US$10 million syndicated from parallel lenders. The use of proceeds of the IFC loan will be to on-lend to informal businesses and micro-enterprises in Ethiopia particularly women-owned business (at least 40% of the use of proceed) to help preserve and sustain low-income jobs (the Project ). Subject to approval, the Project will be supported by a pooled first loss guarantee ( PFLG ) of up to US$40 million provided by International Development Association’s Private Sector Window Blended Finance Facility (IDA-PSW BFF) allocated to the BOP Envelope under the MSME Finance Platform, as well as IDA-PSW Local Currency Facility (LCF) in the form of a cross-currency swap.
