Project detail - VITAS PALESTINE MICROFINANCE COMPANY

VITAS PALESTINE MICROFINANCE COMPANY

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Who is our client

Vitas Palestine (“Vitas”) is the second largest MFI in Palestine. Its mission is to support unbanked people to improve and sustain their lives and businesses by providing them the financial resources needed to support their economic activity and improve their standard of living.

Funding objective

Vitas will use the new facility to continue funding clients in underserved areas of Palestine. The objective of these funds is to extend access to finance for micro-sized enterprises.

Why we fund this project

Transaction perfectly fits in FMO’s strategy to increase our activities in the MENA region. FMO believes that stable access to finance for micro enterprises contributes to economic development. With this long-term financing FMO supports Vitas in its mission to extend access to micro enterprises. Shown by its mission and track-record, Vitas plays an important role contributing to economic development in various (underserved) sectors.

Environmental and social rationale

The project has been categorised as Category C in accordance with FMO’s Sustainability Policy. The Project’s activities are deemed to have minimal or no adverse environmental and social risks and/or impacts. As part of the Project, Vitas Palestine will be required to apply the EDFI Exclusion List and Palestine E&S laws and regulations.

Region
Asia
Country
The Palestinian Territories
Sector
Financial Institutions
Signing date
5/1/2020
Total FMO financing
USD 5.00 MLN
Fund
MASSIF
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
C