VITAS PALESTINE MICROFINANCE COMPANY
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.
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.
|Date||Total FMO financing|
|4/1/2022||USD 9.00 MLN|
- The Palestinian Territories
- Financial Institutions
- Signing date
- Total FMO financing
- USD 0.50 MLN
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)