Project detail - MEDICAL CREDIT FUND II COÖPERATIEF

MEDICAL CREDIT FUND II COÖPERATIEF

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Who is our client

Our client is Medical Credit Fund Coöperatief U.A., a Dutch entity affiliated with the PharmAccess Group, a Dutch NGO with a focus on making inclusive health markets work in sub-Saharan Africa.

Funding objective

The funding objective is to provide a mezzanine tranche behind the equity and junior subordinated debt that catalyzes the senior DFI tranche for this newly established debt fund. Our funds provide a EUR 7.5mln tranche out of the EUR 32.5mln capital stack.

Why we fund this project

We fund this project as it aims to provide financing and technical assistance to about 2,500 SMEs active in the health sector in Sub-Saharan Africa. Such financing is highly additional in these markets and leads to better health in those markets, an essential component for reducing inequalities.

Environmental and social rationale

This project is preliminarily categorised as a category B project based on the expected portfolio composition of MCF II. Maximum exposure per client is below the IFC PS TT threshold. Potential E&S risks in the fund’s portfolio are OHS and waste management. Hence, in general, E&S risks are anticipated to be site-specific and addressed through relatively easy mitigation measures. Nevertheless, CDC, Swedfund and FMO did develop an ESAP to enhance the fund’s E&S risk management practices, by including a.o. SafeCare standards, a grievance mechanism and anti-corruption measures.

More investments

Date Total FMO financing
12/13/2021 EUR 5.00 MLN
Website client
https://www.medicalcreditfund.org/
Region
Africa
Country
Africa
Sector
Financial Institutions
Signing date
12/13/2021
Total FMO financing
EUR 2.50 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)
B