|
|  |
| ENDA Partial Credit Guarantee |
|
| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 24657 |
| Company name | ENDA Inter-Arabe |
| Country | Tunisia |
| Sector | Finance & Insurance |
| Environmental category | FI-1 |
| Department | Global Financial Markets Group |
| Status | Active |
|
| Date SPI disclosed | June 20, 2006 |
| Projected board date | July 20, 2006 |
| Previous Events | Invested: March 14, 2008
Signed: September 19, 2007
Approved: June 26, 2007 |
|
| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
The project involves IFC providing enda inter-arabe (Enda) with a financing and technical assistance package that will complement its strong growth and expansion plans in the coming years. Enda is a microfinance institution (MFI) operating in Tunisia. Since 1995, Enda has provided more than 136,000 loans to over 45,000 borrowers.
The project has two components:
- a partial credit guarantee to enable Enda to source local currency financing from local banks; and
- a technical assistance package to strengthen Enda’s future growth strategy. |
|
| Project sponsor and major shareholders of project company |
| Enda is an international and foreign NGO member of the Enda Tiers-Monde network which is present in more than 20 countries and based in Dakar, Senegal. Established in 1989, Enda started in 1995 to provide microcredit to the poor in Tunisia. Enda is now a leading MFI with an established network of 27 branches/outlets throughout the northern, southern and central parts of Tunisia. Enda is a founder member of the Network of microfinance in the Arab countries. In September 2005, Enda received an international prize from the Arab Gulf Program for United Nations Development Organizations (AGFUND) for its contribution in the field of microcredit. |
| Total project cost and amount and nature of IFC's investment |
| The total project will enable Enda to raise up to TND 7 million ($5.3 million equivalent) loans from local banks, in order to fund its microfinance activities. The proposed IFC investment will be a local currency guarantee of up to TND 3.5 million ($2.7 million equivalent) or 50% of the loans provided by the local banks. In addition, IFC will design a technical assistance program through PEP-MENA, which would help with the growth strategy of Enda. |
| Location of project and description of site |
| Enda’s head office is located in Tunis, Tunisia. It operates through a network of 27 branches/outlets, which are located throughout the northern, southern and central parts of Tunisia. |
|
| Anticipated development impact of the project |
| The developmental impact of Enda is expected to be far reaching in terms of its economic support for productive microentrepreneurs and small businesses, employment generation and providing access to finance to an underserved segment of the market. |
| IFC's expected development contribution |
| IFC's first investment in the microfinance industry in Tunisia will send positive signals to local banks so far reluctant to provide financing to this industry. Through this project, IFC’s role will be to support a leading MFI in its growth strategy, and enable it to operate more commercially with a wider funding base. |
| Environmental and social issues - Category FI-1 |
| This is an FI type 1 microfinance project. Enda will be required to apply IFC’s microfinance exclusion list and develop appropriate procedures to ensure that its borrowers are in compliance with any applicable Tunisian environmental requirements. |
|
| For inquiries about the project, contact: |
Ms. Essma Ben Hamida
Co-Director, ENDA inter-arabe
3, rue El Aacha
Ettadhamen
Tunis 2041, Tunisia
Telephone: +216-71-650 690
Fax: +216-71-650 761
E-mail: info@endarabe.org.tn |
|
| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
|
|
|
|