SAFCO Microfinance Company (Private) LimitedStatus: Approved investment
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Who is our customer
Safco Microfinance Company Pvt Ltd ("SMCL”) is a For-Profit, Non-Deposit Taking Microfinance institution, licensed and supervised by the Securities and Exchange Commission of Pakistan ("SECP”). It provides affordable microfinance services to unbanked and low-income entrepreneurs in the Sindh province where the SAFCO franchise has presence since 1986. SMCL is a wholly owned subsidiary of SAFCO Support Foundation.
What is our funding objective?
The facility supports portfolio growth in women and rural financing thereby promoting financial inclusion and gender equality.
Why do we fund this investment?
Pakistan remains a developing country with majority of the population having no access to commercial funding. Therefore, microfinance providers like SMCL play a key role in assisting the economic progression of the less privileged. Moreover, after the 2022 floods, credit assistance is vital for those affected to rebuild their livelihoods means and resettle.
What is the Environmental and Social categorization rationale?
FMO analyses risks from different perspectives and assessments. In the case of microfinance investments, the E&S classification is typically low because the exposure generally is limited to retail and micro-entrepreneurs. The risks that might come with microfinance investments, such as, among other, over-indebtedness, transparency of interest rates, responsible pricing, are covered by FMO in other assessments such as Client Protection Principles (CPPs). In case of high contextual risk, a human right assessment can be carried out.
- Financial Institutions
- Publication date
- Effective date
- Total FMO financing
- USD 5.00 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)