Funded instruments

EIF as a Management Company of the European Progress Microfinance Fund, a sub-fund of the EU Microfinance Platform FCP-SIF, makes instruments available to intermediaires aimed at enhancing access to credit to micro-enterprises, including self-employed people, female entrepreneurs, young entrepreneurs, entrepreneurs belonging to a minority group, entrepreneurs with a disability, sole traders etc.

• Senior Loans
  Long-term financing is generally in the range of 5-7 years, depending on the intermediaries' debt servicing capacity
• Subordinated Loans
  Financing subordinated to senior creditors, typically enhancing the intermediaries' capital structure
• Risk-sharing Loans
  Senior Loans combined with risk participation in the micro-credits provided by the intermediaries
• Equity Participations
  Investments through ordinary or preferred shares, typically with an investment horizon of 6-8 years

Pricing of funded instruments will reflect the individual transaction risks as well as local market conditions. Interest rates, as applicable, can be set on a floating or fixed-rate basis. Funded instruments can be denominated in Euro or local EU currencies.

The micro-credit activity supported by the financial instruments shall comprise new micro-loans and micro-lease receivables below EUR 25,000 equivalent to micro-borrowers as defined in the European Commission Recommendation 2003/361/EC.

What are the benefits of becoming an intermediary?

Depending on the nature and strategy of each institution, there are various benefits of becoming an intermediary:

• Seed-financing support to greenfield microfinance institutions
• Long-term financing to microfinance institutions that need to scale up micro-credit activity
• Financing combined with risk participation in a new micro-credit portfolio
• Launch of tailored micro-credit products and pilots in general
• Attract new investors from the private sector and reinforce shareholding structure in order to reach sustainability
• Adopt sustainable measures to promote employment
• Gain new customers amongst groups with limited access to the conventional credit market
• Support Corporate Social Responsibility programmes

How to express interest to Progress Microfinance funding?

Interested intermediaries can express interest by email to progress@eif.org

No specific format is required for an initial contact. We invite you to submit a structured presentation of your institution and of your funding needs following the points outlined in the document : How to present your organisation & microfinance programme to the EIF

Progress Microfinance has an investment period until April 2016.

What is Progress Microfinance investment process?

The procedures to apply for funding under Progress Microfinance are easy. Read more about our full investment cycle.