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| Fundusz Mikro sp / MWBank |
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| Summary of Proposed Investment |
| Project number | 24606 |
| Company name | Fundusz Mikro SP. Z.O.O. |
| Country | Poland |
| Sector | Finance & Insurance |
| Environmental category | FI-1 |
| Department | Global Financial Markets Group |
| Status | Active |
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| Date SPI disclosed | September 15, 2006 |
| Projected board date | October 31, 2006 |
| Previous Events | Invested: November 21, 2008
Signed: August 11, 2008
Approved: August 8, 2008 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| The project comprises of an IFC equity investment of up to $7.0 million equivalent for shareholding of approximately 19% in the share capital of MWBank (the Bank); and an IFC sub-loan of up to $2.0 million to the Bank. MWBank, a new bank that will provide micro and small entrepreneurs with access to credit and other banking services is being established by Fundusz Mikro Sp. z o.o. (FM) a specialized for-profit microfinance institution based in Warsaw, Poland. The new deposit raising licensed and regulated commercial microfinance bank will be capitalized with an equity capital of PLN equivalent amount of up to $35.0 million. |
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| Project sponsor and major shareholders of project company |
| Fundusz Mikro is the leading microfinance institution in Poland. It was founded in 1994 and is wholly owned by Microfund, LLC (Microfund). Microfund is wholly owned by the Polish-American Enterprise Fund. |
| Total project cost and amount and nature of IFC's investment |
The Bank seeks capital commitments from investors in the PLN equivalent amount of up to $35.0 million. The initial equity investment of the investors will be the PLN equivalent of up to $25.0 million. The Bank may require further equity financing in the PLN equivalent amount of $5.0 million and further subordinated debt financing in the PLN equivalent amount of $5.0 million.
IFC’s investment is proposed to consist of up to $7.0 million for shareholding of approximately 19% in the share capital of the Bank and an IFC sub-loan of up to US$2.0 million to the Bank. |
| Location of project and description of site |
| MWBank will operate across Poland. Its headquarters will be in Warsaw. |
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| Anticipated development impact of the project |
| The development impact of this project is expected to be high and far reaching in terms of its economic support for productive micro and small enterprises, stimulus for employment generation and widening of the financial sector. The project is going to support the establishment of a commercially oriented sustainable entity that will serve micro and small businesses that otherwise lack access to the banking services. |
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| IFC's expected development contribution |
IFC’s involvement in supporting the establishment of a new licensed bank is expected to:
- encourage replication of sustainable microfinance institutions in the market,
- increase the number of clients (sub-borrowers) over the life of IFC’s investment while increasing employment and income generation, and
- encourage downscaling by commercial banks.
IFC’s investment will support institution building effort, which also stands to benefit from IFC’s global experience in setting up microfinance institutions in different parts of the world. |
| Environmental and social issues - Category FI-1 |
| This is a Category FI Type 1 project according to IFC's environmental and social review procedure. The project will establish and maintain an Environment and Social Management System (ESMS) to the satisfaction of IFC, to ensure that its investments are in compliance with applicable National Environment, Health, Safety and Social laws and regulations and IFC’s microfinance exclusion list. The Project will designate appropriate individuals who will have responsibility for the implementation of the ESMS. The project will submit annual environmental performance reports to IFC. |
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| For inquiries about the project, contact: |
Magda Dulczewska, President
Fundusz Mikro Sp. Z.o.o.
Ul. Solec 38, 00-394 Warszawa
Telephone: 22 50 24 500
Fax: 22 50 24 502 |
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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 |
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