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| WWB Popayan II |
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| 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 | 28547 |
| Company name | Fundacion Mundo Mujer |
| Country |
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| Sector | Microfinance and Small Business - Non Commercial Banking |
| Environmental category | FI |
| Department | Reg Ind, Financial Markets, CAF/CLA |
| Status | Active |
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| Date SPI disclosed | November 19, 2009 |
| Projected board date | December 22, 2009 |
| Previous Events | Invested: July 22, 2011
Signed: April 13, 2010
Approved: March 25, 2010 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| The proposed project involves supporting Fundación Mundo Mujer Popayan (“FMM Popayan” or the “Company”), a local specialized microfinance institution that is one of the Colombian associates of the Women’s World Banking Network. Through IFC’s financing, FMM Popayan will be able to continue growing and diversifying its funding sources in order to increase financing options for low income individuals who are currently underserved, specially micro entrepreneurs and women located in rural areas. |
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| Project sponsor and major shareholders of project company |
| FMM Popayan, the second largest provider of microfinance in the country in terms of assets (excluding supervised banks), was founded in 1989 and operates as a nonprofit organization. As such, it does not offer any deposit services and is not regulated nor supervised by the country’s banking authority. Given FMM Popayán’s status as a nonprofit foundation, there are no sponsors in terms of ownership. As an affiliate of the Women’s World Banking Network (WWB), the Company has been benefited from technical assistance services, information and know-how geared to strengthen their scale, efficiency, sustainability and impact. However, historically there has been no ownership relationship between the WWB and FMM Popayán. |
| Total project cost and amount and nature of IFC's investment |
| The proposed investment consists of a senior secured Colombian-Peso-linked senior of up to US$6 million equivalent, with a final maturity of 4 years, including a 2-year grace period. |
| Location of project and description of site |
| FMM Popayan is headquartered in Popayan, in the southeastern province of Cauca. Nevertheless, the Company has grown to offer its services throughout the country focusing in frontier regions and small and middle sized municipalities. |
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| Anticipated development impact of the project |
| The development impact of IFC’s financing to FMM Popayan is expected to be high, as it will enhance the Company’s ability to support productive MSMEs which will in turn stimulate growth, employment generation and poverty reduction. IFC’s financing will also lead to the incorporation of women and their families to economic activities. In addition, FMM Popayan will be able to increase its outreach and sustainability incorporating thousands of new micro enterprises to the formal financial sector. With IFC’s US$6 million loan, the Company will be able to reach directly over 15.000 new clients within the next four years. |
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| IFC's expected development contribution |
| IFC’s loan will assist FMM Popayan in completing its funding plan for 2009; while providing the Company with a long term loan to allow for a better maturity profile of existing liabilities. In addition, by providing a Peso-linked loan, FMM Popayan would be able to adequately manage its foreign currency exposure. |
| Environmental and social issues - Category FI |
This project involves IFC support for the business of Microfinance and has been classified as a Category FI project. Under an existing project, #24466, the client has developed a satisfactory SEMS and is up-to-date with E&S reporting requirements.
Considering the nature of activities supported, the project will be required to:
- Maintain a procedure relevant to its business process that is satisfactory to IFC, and that ensures that all its investments are screened and processed to avoid supporting activities on the microfinance exclusion list
- Maintain qualified persons to manage and implement the procedure
- Demonstrate commitment and resources to implementing the procedure
- Demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions
- Continue to submit a periodic report to IFC as per a format to be provided by IFC |
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| For inquiries about the project, contact: |
Fundación Mundo Mujer Popayán
Leonor Melo de Velasco, President
Carrera 11 No. 5-70
Popayan, Colombia
Telephone: +572 839 9900
www.fmm.org.co |
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| 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 |
| Local access of project documentation |
IFC Bogota
Cra. 7 No. 71-21 Torre A Piso 14
Bogotá D.C. - Colombia
Tel: +(571) 319 2330 Fax: (571) 319 2359 |
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