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					Richard Pelly                                  PerMicro
                                             Launch Event
Chief Executive




                  February 1st 2011, Milan
      EIF at a Glance


          EU specialised institution for SMEs, risk financing
          Venture Capital and Mezzanine (fund of funds)
          Structuring and Guaranteeing portfolios of SME and microfinance loans/leases




      Geographic Focus /                                       Authorised Capital
      Intermediaries                                           € 3bn
      EU 27, EFTA,                                             EIB: 61%
      Candidate Countries                                      EU: 29 %
      Distributing through Banks                               Fin. institutions: 9 %
                                                               To be issued: 1%
      and Funds
                                                               AAA rated

                              Staffing, Culture and Values



                    Dual Objective of Meeting EU Policy Goals & Generating a
1/9                                Satisfactory Return on Equity
      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
2/9                        for Entrepreneurship and Job Creation
      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



3/9
      EIF Microfinance Operating Model




4/9
      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
5/9
      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




6/9
      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


7/9
      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
8/9                                          Institution

				
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posted:10/7/2011
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