Investment process

The Foundation’s process for identifying and selecting microfinance institutions eligible for its investment priorities and criteria is a rigorous one. This process of analysing a written application and conditions locally, of negotiating the financing conditions and of making the decision within the framework of powers granted by the Board of Trustees, is outlined below:

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The foundation bases its financing decisions on both a financial and social analysis of the microfinance institutions. The aspects analysed are:

• Study of the country context and of the microfinance sector in the country
• Governance, management and human resources
• Strategy, financial performance and projected budget
• Analysis of the portfolio and its offer of financial and non-financial services
• Risk management and internal control
• Outreach/targeting (geographical and individual)
• Adaptability of products and services
• Benefits for the clients
• Social responsibility