SLGP Agri Sogesol (IFC-45991)

Countries
  • Haiti
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
SLGP RSF Sogesol
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 3.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 6.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 20, 2024

Disclosed by Bank Mar 24, 2022


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

A US$3 million unfunded risk sharing facility (RSF) on a portfolio of US$6 million to support Sogesol's lending to  Agri-SMEs. The proposed project consists of an up to US$3 million equivalent risk sharing facility ('RSF') with Société Générale de Solidarité S.A. (Sogesol) on a portfolio of up to US$6 million equivalent. The project will support Sogesol in increasing its lending to Agri-SMEs in Haiti.  The project is part of IFC’s Small Loan Guarantee Program which provides risk sharing instruments to client financial institutions looking to expand SME lending in difficult to serve markets.  SLGP is supported by the IDA18 IFC-MIGA Private Sector Window’s Blended Finance Facility (PSW-BFF), which was created by the Word Bank Group to catalyse private sector investment in IDA countries, with a focus on fragile and conflict-affected states. PSW BFF support enables IFC to rapidly roll out a program of SME risk sharing facilities to reach segments facing serious market failures which IFC could not otherwise serve. The Project is part of IFC’s Small Loan Guarantee Program (SLGP) which provides risk sharing instrument to client banks looking to expand SME lending in difficult to serve markets. SLGP is supported by the IDA IFC-MIGA Private Sector Window’s Blended Finance Facility (PSW-BFF), which was created by the Word Bank Group to catalyze private sector investment in IDA countries, with a focus on fragile and conflict-affected states. The PSW BFF support would enable IFC to rapidly roll out a program of risk sharing facilities to reach segments facing serious market failures in IDA countries and provide access to finance to such underserved targeted market segments which IFC could not otherwise serve due to the associated high risk. The concessional support from IDA PSW, will, therefore, also enable Sogesol to expand lending to agricultural (Agri) small and medium enterprises (SMEs) in rural areas in Haiti with inadequate or no collateral or weak cash flow but with potential to grow their business initiatives.  The level of concessionality (i.e., “subsidy”) provided by the blended concessional finance co-investment is estimated to be up to9 % of the total portfolio of US$800 million for the entire SLGP. This project benefits from the SLGP and the concessionality embedded in the Program. The estimate is based on the difference between (i) a “reference price” (either a market price if available; the price calculated using IFC’s pricing model, which comprises three main elements: risk, cost, and profit; or a negotiated price) and (ii) the “concessional price” being charged by the blended concessional finance co-investment under the program. This level of subsidy is considered the minimal amount of subsidy required based on the expected risk level of the overall portfolio to achieve the floor pricing for the program.  Further details and historical information on estimated subsidy levels in IFC’s blended finance portfolio can be found at: www.ifc.org/blendedfinance. As is the case with all IFC’s blended concessional finance co-investments, this project has been assessed against the Enhanced Blended Concessional Finance Principles for DFI Private Sector Operations adopted by IFC and more than 20 other DFIs in 2017. Further information on these Enhanced Principles and IFC’s blended finance approach and governance can also be found at: www.ifc.org/blendedfinance. The SLGP is a platform approach that can be accessed by other financial institutions in Haiti and other IDA PSW markets.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The total project cost is up to an unfunded US$6 million equivalent, with a maximum exposure for IFC of up to US$3 million equivalent to support lending by Sogesol to qualifying SMEs in Haiti.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

According to the IFC, Sogesol is a private microfinance institution created in 2000 by Sogebank, the second largest bank in Haiti and an existing IFC client. The MFI is 51% owned by Sogebank, its parent company. Other direct shareholders include its Chairman and largest individual shareholder, Pierre Marie Boisson (11.9%); its General Manager, Daphne Louissaint (4%), Carl Auguste Boisson (2%) and Les Assurances Leger S.A. (2%), a leading insurance company operating in Haiti.


Contact Information
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ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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