The non-profit organization PlaNet Finance just announed the launch of PlaNet Bank, a new global investment company for microfinance institutions. The International Finance Corporation (IFC) was the lead investor with $7.3 million. The new investment vehicle intends to “create or invest in 15 microfinance institutions over the next five years,” with at least 60% of these envisioned microfinance institutions (MFIs) in Africa.
The bank will be capitalized at $38 million, signifying a substantial addition to the worldwide microfinance investment climate, in which commercial and (mostly) quasi-commercial investment approximate $1.9 billion. Last year, the launch of a fund of a similar size caused a significant spike on our MicroCapital Index. Though not in our index, PlaNet Bank is now in the top tier of microfinance investment vehicles in terms of asset footings.
The IFC is one of the world’s largest investors in commercial microfinance, with a worldwide microfinance portfolio of more than $260 million. PlaNet Finance has invested over $300 million generally, $220 million of which was allocated to microfinance.Additional Resources1) Press Release: "IFC Invests in New Africa-Focused Microfinance Initiative."
2) International Finance Corporation (IFC) Summary of the PlaNet Bank project3) PlaNet Finance’s Annual Report FY 2004
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