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

USD 10mln revolving portfolio guarantee on existing and new MSME loan portfolio of COVID-19 Affected, Youth and Female Entrepreneurs based in Palestine.

Why we fund this project

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.

Environmental and social 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
4/1/2022 USD 9.00 MLN
Region
Asia
Country
The Palestinian Territories
Sector
Financial Institutions
Signing date
4/1/2022
Total FMO financing
USD 0.50 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)
C