Legal structure and strategy
Advans SA SICAR (Advans SA), created in August 2005, is incorporated in Luxembourg as an investment company in venture capital and supervised by the CSSF, the Luxembourg financial sector regulator. Advans SA invests alongside like-minded shareholders as majority shareholder in the creation of new financial institutions (greenfield MFIs), and also as lead investor in existing MFIs which have similar goals. Advans provides its affiliates with financial resources such as loans and guarantees to face short or medium term financial needs. Advans SA actively participates in the governance of its financial institutions.
Advans SA's shareholding structure combines the expertise of Advans International with the financial solidity of six Development Finance Institutions. These organisations have for many years been pivotal to the development of the microfinance sector.
Advans SA's Board of Directors is chiefly responsible for the overall management of Advans SA in accordance with the company's statutes and Luxembourg law. The Board is made up of qualified senior professionals with extensive experience and in-depth knowledge of financial services. Advans SA has also created committees to support the Board of Directors, the Audit and Risk Committee, and the HR and Governance Committee, a Social Performance Champion has also been nominated on the Board.
The Board integrates Sustainability Risks into decision-making throughout the investment process. The Company’s investment evaluation includes an Environmental and Social (ESG) due diligence, customized according to the risk profile of the investee . Results of the ESG due diligence are presented to the Board whose investment decision includes the review of ESG factors. Where ESG-related risks cannot be mitigated to a satisfactory extent, the investment will not proceed.
Advans commits to ensuring that Environmental and Social Performance are an integral part of its governance and policies. In pursuing its social and environmental objectives, the Company places a priority on the effective management of potential environmental and social risks associated with its investments to do no significant harm to any area of environmental or social concern. To that end, the Company has implemented and maintains an Environmental & Social Policy and Exclusion List which clearly describe activities that cannot be funded directly or indirectly by the Company. The Company closely monitors its social and environmental impact and provides regular reports to its stakeholders.