O.C.N. MICROINVEST S.R.L.
Status: Approved investmentWhy disclosure?
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In case of questions, please contact us at disclosure@fmo.nl
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?
Microinvest, an existing FMO client since 2008, provides micro lending to small entrepreneurs in the Republic of Moldova. Established in 2003, it has a nationwide network of 16 branches, 300 staff, and serves predominantly rural clients active in the agriculture sector.
What is our funding objective?
With this EUR 20 million loan (EUR 15 million committed tranche and EUR 5 million uncommitted) to Microinvest, FMO facilitates access to financing for micro-, small-, and medium-sized entrepreneurs (MSMEs), mainly in the agricultural sector. By providing finance to MSME clients, Microinvest promotes economic growth amongst the low-income population.
Why do we fund this investment?
The transaction with Microinvest fits perfectly with FMO's aim to support sustainable and inclusive economic growth. Microinvest's mission is to support urban and rural MSME customers neglected by the traditional banking system. With a large part of its portfolio in the agri sector, Microinvest contributes to the socio-economic development of the country. This transaction is labelled 100% Reducing Inequalities.
What is the Environmental and Social categorization rationale?
The project has been E&S categorized as C per FMO’s Sustainability Policy. The project’s activities are deemed to have minimal or no adverse environmental and social (E&S) risks and/or impacts. As part of the project, Microinvest will be required to apply the EDFI Exclusion List and Moldova's E&S laws and regulations. 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 others, over-indebtedness, transparency of interest rates, and responsible pricing, are covered by FMO in other assessments such as the Client Protection Principles (CPPs). In case of high contextual risk, a human rights assessment can be carried out.
More investments
| Date | Total FMO financing |
|---|---|
| 4/14/2023 | EUR 15.00 MLN |
| 8/13/2024 | EUR 3.00 MLN |
| 8/14/2023 | EUR 4.00 MLN |
| 3/1/2018 | EUR 0.02 MLN |
| 9/1/2016 | EUR 0.02 MLN |
| 10/18/2019 | EUR 5.00 MLN |
- Website customer/investment
- https://microinvest.md/en/
- Region
- Europe & Central Asia
- Country
- Moldova, Republic of
- Sector
- Financial Institutions
- Publication date
- 2/11/2025
- Effective date
- 4/1/2025
- Total FMO financing
- EUR 15.00 MLN
- Funding
- FMO NV
-
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