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Financial instruments

Financial instruments

The EIB Group provides funding to financial institutions offering microfinance services in the form of loans, guarantees, equity participations and technical assistance grants. We can either be a direct investor in or indirectly finance these financial institutions through specialised intermediaries, such as microfinance investment vehicles (MIVs) or microfinance holding groups.

The EIB Group's financial instruments consist of:

Direct loans and equity participations in financial institutions:

Direct loans are credit facilities provided to microfinance providers at commercial rates for medium to long term tenors. In a number of eligible countries, loans are available in local currency. 

59%

Percentage of EIB’s microfinance portfolio dedicated to direct debt and equity finance transactions to 36 Financial Intermediaries as of December 2016.



Equity and debt participations in microfinance investment intermediaries:

A significant share of the EIB Group's investments in microfinance is allocated through specialised intermediaries or MIVs. In turn, MIVs provide debt, equity and guarantees to microfinance institutions which offer a wide range of financial services to micro, small and medium-sized enterprises, such as savings, loans, transfers and insurance.

41%

Percentage of EIB’s microfinance portfolio dedicated to financing 17 MIVs and holding companies as of December 2016



The balance of EIB's microfinance portfolio consists of technical assistance grants.



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