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Description |
REG: SHORECAP INTERNATIONAL FUND |
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Objectives and Scope |
The Fund has made investments in target investees that provide banking and other financial services to MSEs in order to create jobs for or otherwise benefit low-income persons, or have the potential to expand financial services to low-income communities that have historically been excluded from the formal banking system. Investees have included small business banks, microfinance banks, regulated microfinance non banks and microfinance non governmental organizations primarily those transforming into formal financial institutions that provide access to financial services to individuals and sectors of the economy typically ignored by mainstream financial institutions. |
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Status of Development Objectives |
The Fund's investees have so far made a considerable number of new development loans. Development loans are loans to (i) small enterprises that create jobs for the poor and (ii) low-income microentrepreneurs in impoverished areas. |
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Linkage to Country/Regional Strategy |
This project is well aligned with ADB's central mission of poverty reduction through the implementation of various ADB strategy and regional guidelines with regard to (i) promotion of microfinancing, (ii) support for SMEs, (iii) enhancement of financial markets, and (iv) encouragement of appropriate private-sector led initiatives in addressing these goals. This will directly address the key elements of ADB's poverty reduction strategy, namely the promotion of (i) pro-poor, sustainable economic growth (through directly assisting MSE sectors via support for qualified investees); (ii) social development (through ensuring that these investees reach out to poor, underserved areas of their economies, as well as embrace socially sound practices); and (iii) good governance (through the Fund's board membership and active role within investee institutions to promote good corporate governance as a core part of the investment strategy). |
