february 1st 2011, milan
Post on 09-Feb-2016
29 Views
Preview:
DESCRIPTION
TRANSCRIPT
February 1st 2011, Milan
Richard PellyChief Executive
PerMicro Launch Event
2 / 9
EIF at a Glance
Dual Objective of Meeting EU Policy Goals & Generating a Satisfactory Return on Equity
EU specialised institution for SMEs, risk financingVenture Capital and Mezzanine (fund of funds)Structuring and Guaranteeing portfolios of SME and microfinance loans/leases
Authorised Capital € 3bn EIB: 61%EU: 29 %Fin. institutions: 9 %To be issued: 1%
Geographic Focus /IntermediariesEU 27, EFTA, Candidate CountriesDistributing through Banks and Funds
AAA rated
Staffing, Culture and Values
3 / 9
Microfinance in Europe Micro-enterprises make up 90% of businesses in Europe and
99% of yearly enterprise creation – 33% launched by the unemployed
Important growth generating market segment with social and financial impacts
BUT
Market is fragmented and underdeveloped (particularly in Western Europe)
Large variety of MFIs (small non-profit organisations or governments-owned development agencies, large commercial banks)
Microfinance often characterised by subsidised services and not self-sustainable
Efficient Support of the European Microfinance Sector Important for Entrepreneurship and Job
Creation
4 / 9
EIF as Catalyst of Microfinance within the EU
Microfinance as an emerging strategic business line
Expertise and track record (EPPA, JASMINE, RCM, JEREMIE)
Financing capacity
Dedicated resources
Geographic reach across EU-27
5 / 9
EIF Microfinance Operating Model
6 / 9
Microfinance: EIF’s Activities since 2000
EIF manages various mandates designed to encourage microfinance institutions to increase financial availability to micro-entrepreneurs and micro-entreprises
Through these mandates, EIF has already invested in microfinance Guarantees transactions signed under the EU MAP
(2001-2006) and CIP (2007-2013) programmes for a total commitment of € 636m
Participation in securitisation transactions for a total commitment of € 120m
JASMINE Technical Assistance for € 6m to support microfinance providers: 15 institutions selected and supported (including PerMicro)
Broad Range of Microfinance Activities
7 / 9
The Progress Microfinance Initiative: “Umbrella” for Existing Microfinance Initiatives
■ Initiative launched in 2010 to promote microfinance in the EU-27
■ EUR 200m funded by EC (DG EMPL) budget and EIB - managed by EIF
■ Key objectives: increase availability of finance for enterprise creation for the benefit of micro-entrepreneurs, the unemployed and groups with limited access to the traditional banking system
■ Key aspects: rapid market impact, leverage effect, EU-wide promotion, social inclusion/job creation
8 / 9
Microfinance Sector in Italy 95 % of SMEs in Italy are micro-enterprises Market fragmented with some initiatives from public and
private sectors but no cohesiveness; focus mainly on Southern Italy so far
Microcredit requirements differ from region to region 82 % of microfinance institutions are not-for-profit
(cooperatives micro-lenders, NGOs) The beneficiaries are start-ups and micro-companies of less
than five employees, as well as women and immigrants. Only 27% of the credits granted are to women and 21% to immigrant populations
Evidence that the microfinance sector in Italy is nevertheless in a phase of steady development and emergence of dynamic institutions aiming for strong growth and real sustainability
9 / 9
PerMicro’s Model■ Targets and strategy in line with EPPA criteria
■ Higher risk, earlier stage funding, capacity building■ Shareholders and governance have a clear focus
on microcredit■ Centralised assessment and decision making
process■ Branch network with high degree of outreach,
particularly in Northern and Central Italy■ Strong track record, management and staff
expertise in microfinance■ Strong attention to costs and risk covering,
balance between social objectives and commercial approach
■ Sustainability of model will encourage other players to start micro- ventures in Italy
EIF’s First Direct Equity Investment into a Non-Bank Microfinance Institution
top related