Source: Incofin
Original press release here.
Incofin is a Belgium based microfinance fund manager, managing 4 investment funds with total assets worth USD 250 million. In 2007, Incofin launched the Rural Impulse Fund (RIF), a specialized fund for rural microfinance, in co-operation with International Finance Corporation (IFC), European Investment Bank (EIB), Netherlands Development Finance Company (FMO), BIO and private institutional investors.
In the last week of December 2008, Incofin signed an agreement with Asomi, the leading microfinance institution in the state of Assam (North-Eastern India). Rural Impulse Fund acquired 25 percent of the capital of Asomi. The microfinance institution has 40 branches and serves 30,000 clients. Asomi is one of the few microfinance banks reaching out to the 20 million, mainly rural, inhabitants of Assam, who do hardly have any access to microfinance services.
The capital injection by Incofin/Rural Impulse Fund is a first step in the growth strategy of Asomi. In the coming years, further capital for expansion will be attracted, both from the existing local partner as from new partners.
For Incofin, acting as sole and lead investor, this investment is an important first entry into India.
Asomi is lead by Mr. Subhra Bharali, a 31 years old and dynamic entrepreneur, who created the NGO in 2001. Mr. Bharali is excited about the co-operation with Incofin/RIF: “From the very beginning there was an excellent match with Incofin’s team members. I was surprised to see how well they understood the specific characteristics of Asomi. They were very responsive in providing solutions. Distance and cultural differences never seemed to matter. On the contrary, through its international network and outstanding reputation in the field of microfinance, I feel Incofin will bring a big added value.”
Mr. Loïc De Cannière, CEO of Incofin, is also enthusiastic about this transaction: “It is one of the larger equity deals in our portfolio and it is an important step for us. Quite recently we have strengthened our equity team, as we want build a larger equity portfolio, where we observe more demand. This deal shows that we have an excellent name in the world of microfinance and that we can be very responsive, even in the face of strong competition, as we see in India.”
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