6 ème Conférence Annuelle de SANABEL Beyrouth – Mai 2009 FINANCING MICROFINANCE MENA REGION Pascale Lacombrade Group’s Microfinance coordinator SOCIETE GENERALE

Table of contents SG Group key facts – Profile – International Retail Network – Within MENA region SG & Micro finance – A snapshot – Within MENA region Financing an MFI – preliminary facts

The Group’s profile A Baseline pledge : “We stand by you” Three core business lines – Retail Banking & Financial Services – Global Investment Management & Services – Corporate & Investment Banking A robust Group – 30 million customers throughout the world – 163,000 employees from 122 nationalities in 82 countries – Net Banking Income: € 21,866 millions – AA- (Standard & Poor’s), AA- (Fitch) and Aa2 (Moody’s) +€ 2.0 billion Net income*

The Group’s profile Universal Banking – Global Investment Management & Services – 63,000 employees of 59 nationalities + 13 Million Customers (Individuals & Corporate)

SG Retail in the MENA Region TUNISIA 99 branches 1,383 employees JORDAN 16 branches 216 employees ALGERIA 53 branches 1,148 employees LEBANON 57 branches 1,096 employees EGYPT 123 branches 3,148 employees MOROCCO 279 branches 2,729 employees + 1,2 Million Customers (Individuals & Corporate)

Microfinance activities - Snapshot The first step … in Morocco SGMA is the very first bank to agree to lend to the sector (backed by USAID, concessional loans) Today … – 40 % of the total resources allocated by French banks to the sector – 16 subsidiaries lend to 38 MFIs that provide services to 1.5 million micro-entrepreneurs – Three subsidiaries are shareholders in MFIs in Cameroon, Ghana & Madagascar (three in pipe) + € 150 M Funds engaged (local currency)

MENA – The Group’s “Flagship” in MF Main features – 13 MFIs financed – In four countries – Local currency only – Facilities Overdraft and Short Term Loan Medium Term Loan Long Term Loan – Guarantees Required to initiate relationships Increasing leverage Clean facilities +Grameen-Jameel SG = # 1 partner Contacts Marocco Mohamed Amiliki Samir Benhima TunisiaSana El Molk Bey EgyptMohamed Antably JordanNadim Abaout Lebanon Barbara Daoud

Financing an MFI : Preliminaries Building confidence … – Which expertise / legitimacy in the field of micro finance ? (history, founders, external support, institutional supporting) – Is the governance clear and reliable ? – Does the institution benefit from a good image and reputation ? – May we obtain external guarantees ? Financials speak … Documentation – Legal documents – Activity reports – Audited financial reports – Visits – If any, rating reports + Transparency

Thank you for your attention