Grameen Crédit Agricole Microfinance Foundation proposes financial solutions and carefully designed technical-cooperation solutions to provide long-term mentoring for microfinance institutions (MFIs) so that they can reach financial autonomy.

What Grameen Crédit Agricole Microfinance Foundation has to offer

Grameen Crédit Agricole Microfinance Foundation proposes not only loans, but also loan guarantees, quasi-equity capital and equity financing.

Middle-term or long-term loans designed to strengthen the financial autonomy of MFIs

The Foundation systematically favours financing in local currencies. It requires no tangible security from its MFI partners.

Thanks to support from Crédit Agricole CIB and TCX, the Foundation thus grants its financing in local currency, and exceptionally in euros or in US dollars.

Supplementary products that meet the specific needs of MFIs

The Foundation also has the capacity to assist MFIs in their development, by proposing them financing in the form of guarantees, quasi-equity capital, or equity.

It offers a partial guarantee for local banks carrying out middle-term or long-term loans for MFI partners. This guarantee takes the form of standby letters of credit, thanks to support from
 Crédit Agricole CIB, or of guarantees issued directly by the Foundation.

The other financing offers that may be proposed – according to the needs of the institution and the legal framework that applies – are equity-type loans, subscription to bonds issued by MFIs, and, if need be, equity investment.

However, this involvement in capital must be minority in nature and for a limited period (10 years maximum).

More on the Foundation’s approach to microfinance…

Products adapted to the specific nature of MFIs and that evolve according to their stage of development

“Long-term” and “trust”: the keywords of the Foundation

The debt investments as well as the guarantees issued by the Foundation benefit from maturity that can last up to 5 years (exceptionally 7 years).

Differently from commercial investors, the Foundation accepts high financial risk and has a long-term outlook on its investment actions.
Thanks to maturities designed to further MFI autonomy, it seeks to grant institutions the time they need to form their own equity that will enable sustainable development of their activities.

An evolving range of products adapted to the special features of MFIs

New products can be introduced following proposal by the Projects Committee. They must then be approved by the Board of Trustees.

The Foundation thereby undertakes to develop a respectful partnership based on understanding and taking into account of the issues specific to MFIs.

More on the microfinance institutions supported…

Technical cooperation to meet the specific needs of MFI partners

The Foundation also wants its MFI partners to benefit from technical cooperation in areas such as:

• organisation,
• governance,
• risk management,
• asset and liability management,
• development of new products,
• working out and monitoring growth plans,
• measurement of social performance.

This offer is currently being developed. The Foundation has endowed a “Partnership Fund” that is capable of participating in financing consultation missions alongside the beneficiary institution and, if need be, public development-cooperation organisations.

For example, it has passed a development-cooperation agreement with Monaco's Office of International Cooperation and Development in order to co-finance technical cooperation missions.