6ème Conférence Annuelle de SANABEL

Beyrouth – Mai 2009

FINANCING MICROFINANCE MENA REGION

Pascale LacombradeGroup’s Microfinance

coordinatorSOCIETE GENERALE

Table of contents

• SG Group key facts– Profile– International Retail Network– Within MENA region

• SG & Micro finance– A snapshot– Within MENA region

• Financing an MFI – preliminary facts

The Group’s profile

• A Baseline pledge : “We stand by you”

• Three core business lines– Retail Banking & Financial Services – Global Investment Management & Services– Corporate & Investment Banking

• A robust Group– 30 million customers throughout the world– 163,000 employees from 122 nationalities in 82 countries– Net Banking Income: € 21,866 millions– AA- (Standard & Poor’s), AA- (Fitch) and Aa2 (Moody’s)

+€ 2.0 billionNet income*

The Group’s profile• Universal Banking

– Global Investment Management & Services– 63,000 employees of 59 nationalities

+ 13 Million Customers

(Individuals & Corporate)

SG Retail in the MENA Region

TUNISIA

99 branches

1,383 employees

TUNISIA

99 branches

1,383 employees

JORDAN

16 branches

216 employees

JORDAN

16 branches

216 employees

ALGERIA

53 branches

1,148 employees

ALGERIA

53 branches

1,148 employees

LEBANON

57 branches

1,096 employees

LEBANON

57 branches

1,096 employees

EGYPT

123 branches

3,148 employees

EGYPT

123 branches

3,148 employees

MOROCCO

279 branches

2,729 employees

MOROCCO

279 branches

2,729 employees

+ 1,2 Million Customers

(Individuals & Corporate)

Microfinance activities - Snapshot

• The first step … in MoroccoSGMA is the very first bank to agree to lend to the sector (backed by USAID, concessional loans) • Today …

– 40 % of the total resources allocated by French banks to the sector

– 16 subsidiaries lend to 38 MFIs that provide services to 1.5 million micro-entrepreneurs

– Three subsidiaries are shareholders in MFIs in Cameroon, Ghana & Madagascar (three in pipe)

+ € 150 MFunds engaged (local currency)

MENA – The Group’s “Flagship” in MF

• Main features– 13 MFIs financed – In four countries– Local currency only– Facilities

• Overdraft and Short Term Loan• Medium Term Loan• Long Term Loan

– Guarantees • Required to initiate relationships• Increasing leverage • Clean facilities

+Grameen-Jameel SG = # 1 partner

• Contacts

Marocco Mohamed AmilikiSamir Benhima

Tunisia Sana El Molk BeyEgypt Mohamed AntablyJordan Nadim AbaoutLebanon Barbara Daoud

Financing an MFI : Preliminaries

• Building confidence …– Which expertise / legitimacy in the field of

micro finance ? (history, founders, external support, institutional supporting)

– Is the governance clear and reliable ?– Does the institution benefit from a good image

and reputation ?– May we obtain external guarantees ?

• Financials speak …

• Documentation– Legal documents– Activity reports– Audited financial reports– Visits– If any, rating reports

+ Transparency

Thank you for your attention