VITAS PALESTINE MICROFINANCE COMPANY
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer?
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.
What is our funding objective?
USD 10mln revolving portfolio guarantee on existing and new MSME loan portfolio of COVID-19 Affected, Youth and Female Entrepreneurs based in Palestine.
Why do we fund this investment?
The NASIRA portfolio guarantee to Vitas perfectly fits with FMO’s strategy to contribute to achieving decent work and economic growth and reduce inequalities in Europe’s Neighborhood Countries. The urgent need for better access to financial means for entrepreneurs in West Bank and Gaza is clear. FMO’s product offering has a comprehensive Covid-19 support package to MSMEs. A CD program will aim at supporting Vitas to expand its value proposition towards Youth and (W)MSMEs.
What is the Environmental and Social categorization rationale?
The transaction has been assessed as Category C in accordance with FMO’s Policy. E&S risk is deemed limited due to its small client exposures and no high-risk sector exposure. Vitas applies an exclusion list - in line with FMO’s list and Palestine's E&S laws and regulations - with sectors that are not allowed to be financed. No exposure in the permitted exclusion list categories apply for Vitas.
More investments
| Date | Total FMO financing |
|---|---|
| 7/11/2024 | USD 0.02 MLN |
| 4/1/2022 | USD 0.50 MLN |
- Region
- Asia
- Country
- The Palestinian Territories
- Sector
- Financial Institutions
- Publication date
- 11/16/2021
- Effective date
- 4/1/2022
- Total FMO financing
- USD 9.00 MLN
- Funding
- FMO NV
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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