Iraq Middle Market Development Foundation

IMMDF’s mission is to promote economic development and rehabilitation in Iraq by providing capital to small and medium-sized businesses unable to secure debt financing from conventional sources on commercially reasonable terms. IMMDF was able to provide loans of $35,000-$5 million to anyone single borrower. Loan proceeds could be used for project or contract financing, purchase of machinery equipment and other fixed assets, supporting inventory and other working capital needs, and construction or renovation of facilities.

From 2005 – 2008, ISG’s multiple on-site consultants provided a broad spectrum of services to the foundation including:

Loan origination. Our work related to identifying loan prospects and marketing the foundation’s loan products. This included meeting face-to-face with perspective borrowers inside and outside of Iraq to explain the foundation’s policies and lending practices. The foundation had a robust and arduous application process that required borrowers to submit full business plans, full projected financials, specific details about assets to be purchased for construction to be performed and assurances of compliance with US government requirements on safety, the environment and human resources. During the origination process, ISG’s consultants were tasked with performing due diligence on pledge collateral, including fixed assets.

Underwriting. After an application was initially accepted, ISG’s consultants responsible for completing an arduous underwriting process that included a cash flow analysis, ensuring funds were tied to specific uses and that pledged collateral was sufficient to satisfy the foundation’s collateral requirements. Upon completion of credit memo, ISG’s consultants were responsible for presenting the credit memo to an independent board for approval.

Portfolio management. After a loan was approved, ISG’s consultants were responsible for overseeing and managing a continually growing portfolio. This included performing regular checkups and field visits to clients to ensure loan funds were being used for the correct purposes. ISG’s consultants were also tasked with performing a “business consulting” role for the foundation’s clients in order to help them improve their business practices and streamline their operations.

Administration. ISG also contributed significantly to building the internal capacity of the foundation. When Admiralty began working with the foundation, it had 6 full-time employees. When ISG completed its final contract term with the foundation there were more than 25 staff. We were instrumental in developing the foundations internal information technology and structure, policies and procedures, portfolio management tools and field operations.

  • Client: Iraq Middle Market Development Foundation
  • Date: January, 2010
  • Services: Strategy & Planning, Monitoring & Evaluation, Enabling Technology, Capacity Building
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