The Norwegian Microfinance Initiative (NMI), a public-private partnership (PPP) that provides technical and financial support to microfinance institutions (MFIs), has agreed to invest an additional EUR 2 million (USD 2.8 million) in the Triodos Microfinance Fund (TMF), a Netherlands-based microfinance investment vehicle (MIV) that supports MFIs around the world [1]. In 2010, NMI Global Fund, which supports established MFIs, made an initial investment of EUR 4 million (USD 5 million) in TMF, as was reported by MicroCapital on July 9, 2010 [2].
Njord Andrewes, a senior investment associate with NMI, commented on the decision to increase the investment in TMF, saying that, “The investment strategy of TMF is well aligned with the investment strategy of the NMI Global Fund, and TMF has performed very well since we made our original investment. In addition, TMF has a strong investment pipeline of MFIs requiring financing.”
As of December 31, 2010, NMI Global Fund had outstanding investments of USD 38.9 million in seven MIVs whose total capitalization amounted to USD 664 million. As of March 31, 2011, TMF had a microfinance portfolio of EUR 55.3 million (USD 78 million) invested in 24 MFIs in 17 countries.
By Rohan Trivedi, Research Associate
About The Norwegian Microfinance Initiative (NMI):
The Norwegian Microfinance Initiative (NMI) is a partnership between the Norwegian public and private sectors that invests in and provides technical support for microfinance institutions (MFIs) in developing countries. The mission of NMI is “to contribute to the empowerment of poor people and to the creation of jobs, wealth, and economic and social sustainability in developing countries by investing in and supporting MFIs.” NMI invests through two funds: NMI Global Fund, which supports the expansion of MFIs that already have large operations that are deemed sustainable, and NMI Frontier Fund, which supports emerging MFIs in Sub-Saharan Africa and South Asia. As of October 2010, NMI’s website indicates that its investors have committed NOK 600 million (equivalent to USD 100 million) to the NMI Global Fund and the NMI Frontier Fund. NMI does not report data to Microfinance Information Exchange (MIX), the microfinance information clearinghouse.
About Triodos Microfinance Fund (TMF):
Triodos Microfinance Fund (TMF) is a microfinance investment vehicle that mobilizes capital for microfinance institutions (MFIs). TMF invests 80 percent of its portfolio in established microfinance institutions (MFIs) and 20 percent in start-up institutions. The fund allocates approximately 30 percent of its holdings to equity and 70 percent to loans and debt securities. Investors include the Netherlands-based insurance company Achmea, CCLA Investment Management Limited and The Waterloo Foundation, a UK-based independent grant-making foundation. In April 2011, its annual label was renewed by the Luxembourg Fund Labeling Agency (LuxFLAG), an organization that investigates whether investment vehicles actually support the microfinance sector. As of 2009, TMF has assets under management worth EUR 200 million (USD 277 million).
Sources and Additional Resources:
[1] NMI News: “NMI Global Fund Invests EUR 2 million in Triodos Microfinance Fund to Support Microfinance Institutions in Developing Countries”, http://www.nmimicro.no/index.php?section=6&news=2011-04-11_NMI_Global_Fund_Invests_EUR_2_million
[2] MicroCapital.org story, July 9, 2010: “MICROCAPITAL BRIEF: Norwegian Microfinance Initiative (NMI) Global Fund to Invest $5m in Triodos Microfinance Fund”, https://www.microcapital.org/microcapital-brief-norwegian-microfinance-initiative-nmi-global-fund-to-invest-5m-in-triodos-microfinance-fund/
MicroCapital Universe Profile: Norwegian Microfinance Initiative (NMI), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Norwegian+Microfinance+Initiative+%28NMI%29
MicroCapital Universe Profile: Triodos Microfinance Fund (TMF): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Triodos+Microfinance+Fund
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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