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MICROFINANCE ENHANCEMENT FACILITY (MEF)

Product summary  

Created by the International Finance Corporation (IFC), a member of the World Bank Group, and the German development bank KfW, and co-managed by BlueOrchard, the Microfinance Enhancement Facility (MEF) has been designed to support the growth of microfinance institutions by providing them with much needed refinancing at a time when investment is in high demand but low supply.
 
By funding well-established, sustainable microfinance institutions, the MEF provides access to financial services for as many as 60 million micro-entrepreneurs who are running productive small businesses. With up to USD 500 million to invest, the facility's objective is to ensure that microfinance continues to stimulate growth, create jobs and reduce poverty in emerging markets.
Key product features
  • Solid returns;
  • Risk spread over a diversified portfolio;
  • Low correlation with other asset classes;
  • Low risk of lenders defaulting as MFIs are typically highly solvent;
  • Backed by the World Bank and other large institutional investors;
  • Managed by three leading microfinance investment companies: responsAbility, Cyrano Management and BlueOrchard Finance S.A.
Social impact
  • Contribution to growth in emerging economies;
  • Considerable global reach impacting 60 million micro-entrepreneurs;
  • Supporting the alleviation of poverty, leading to better housing, nutrition, health and education;
  • Empowering marginalized groups, such as women, rural entrepreneurs and food producers;
  • Effectively promotes commercial microfinance investment to the mainstream financial market.  

  Found out more: MEF website                                          


Key figures as of 30 September 2011

Inception date 5 February 2009
Microfinance investment portfolio USD 166.4 million
Total assets USD 194 million
BlueOrchard portfolio USD 71.51 million
Portfolio maturity 20 months
Nb of loans outstanding with BlueOrchard 30
Nb of MFIs with outstanding loans (BlueOrchard portfolio) 22
Nb of countries with outstanding loans (BlueOrchard portfolio) 12

MEF information and dislcaimer

Description
The Microfinance Enhancement Facility SA SICAV (MEF) is a specialized investment fund in Luxembourg, promoted by IFC and KfW in order to enhance liquidity support to microfinance institutions for a limited period of time.

 

Objectives
This operation aims to meet the objectives of the Cotonou Agreement for the eradication of poverty by supporting the improvement in the quality, availability and accessibility of financial services and the development of modern financial institutions and sustainable microfinance operations.

 

The key strategic objectives of the operation are:

  • Liquidity enhancement for commercially viable microfinance institutions (MFIs) that meet rigorous eligibility criteria;
  • Provision of credit to micro and small enterprises through MFIs targeted by MEF. 

 

Disclaimer:

Above information is provided solely for indication and should be verified with the fund managers IFC and KfW.
The information contained herein does not constitute an offer to sell or an invitation to purchase units of the MEF. The MEF is not authorized for public sale in Switzerland and must therefore not be publicly marketed in Switzerland. The units of the MEF must not be purchased, held by or transferred to investors who are domiciled in or are nationals of the USA or its territories. Neither the management company nor BlueOrchard Finance SA are liable for any damages or losses of any kind that have arised from the use of the information contained herein.
By accessing, visiting or using the web pages on the MEF, you, personally and/or on behalf of any legal entity of which you are a representative, agent or employee, when acting in such capacity, agree to the following disclaimer: the contents of this website are for information purposes only. The information on this website does not constitute an offer or solicitation to invest. Additionally, no information constitutes a concrete investment recommendation or service. Access to the products and funds mentioned on this website shall not be granted to persons who are nationals of, or domiciled in, countries where local law or regulations forbid access to such information. The same shall apply to the prospectuses of these products. The information contained in this website is protected by intellectual property rights that are owned or claimed by BlueOrchard Finance SA and any associated or affiliated company.
The performance data quoted in these web pages represents past performance, and is no guarantee of future results. Your returns and the principal value of your investment will fluctuate so that your shares or accumulation units, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above.

MFI Snapshot:

xac bank lobby for web.jpg

XAC Bank provides accessible and transparent banking services to marginalized citizens in remote rural areas, including the nomadic herders.

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Product updates

Microfinance Enhancement Facility - resources

MEF fact sheet by IFC, dated February 2009
BlueOrchard is not responsible for information released by IFC.
BlueOrchard selected to co-manage MEF
BlueOrchard selected to co-manage facility launched by IFC and KfW to support continued growth of microfinance industry. (BlueOrchard press release dated 5 Feb. 2009)
BlueOrchard sélectionné pour co-gérer le "MEF"
BlueOrchard selectionné pour co-gérer un nouveau fonds lancé par SFI (IFC) et KfW afin de soutenir la croissance de la microfinance.

Request information and reports on the MEF

To request more information on the MEF, kindly contact IFC or KfW. Thank you.