Goodwell West Africa, a branch of Goodwell Investments, a business development company based in the Netherlands, has received commitments of EUR 8 million (USD 9.7 million) from KfW Entwicklungsbank (KfW), a German development bank, and EUR 1.6 million (USD 1.9 million) from Norwegian Microfinance Initiative (NMI), a strategic partnership between the Norwegian public and private sectors that invests in and provides support for microfinance institutions (MFIs) in developing countries. The funds will be invested in established MFIs as well as emerging MFIs in Ghana and Nigeria.
Category: Deals
MICROCAPITAL BRIEF: Faulu Kenya, a Microfinance Bank Based in Nairobi, Signs Partnership Deal with PesaPoint, a Private Provider of ATM Services
Faulu Kenya, a microfinance bank based in Nairobi, recently signed a partnership deal with PesaPoint, a private company that provides automated teller machine (ATM) services, that will allow its customers to withdraw cash and access previously approved loans from ATMs across Kenya. By expanding service availability through such partnerships, Faulu Kenya plans to expand its client base to 1.5 million from the current 200,000 customers over the next two years according to John Mwara, the bank’s chief executive officer.
MICROCAPITAL BRIEF: Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) Signs “Memorandum of Understanding” with Six Microfinance Banks
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has signed a “memorandum of understanding” with six microfinance banks in order to facilitate the provision of microcredit for small and medium-sized enterprises across the country. The six microfinance banks that will receive grant money from SMEDAN are Misau Microfinance Bank in Bauchi, Kada Microfinance Bank in Kaduna, Safeline Microfinance in Abuja, KRGY Microfinance Bank in Jigawa, Atlas Microfinance Bank in Abuja, and Fahimata Microfinance Bank in Kaduna.
MICROCAPITAL BRIEF: Daiwa Securities Group to Issue Bonds in Japanese Market to Support Operations of European Bank for Reconstruction and Development (EBRD)
Daiwa Securities Group, a Japanese securities broker reporting JPY 17.1 trillion (USD 186 billion) in assets as of March 2010, will be issuing bonds to Japanese retail and institutional investors to support the operations of the European Bank for Reconstruction and Development (EBRD), an international developmental finance institution focusing on Eastern Europe and Central Asia and headquartered in London [1].
MICROCAPITAL BRIEF: Elevar and SVB make USD 8.6m Equity Investment In Indian Microfinance Institution Vistaar Livelihood Finance
Elevar Equity Advisors and SVB India Capital Partners have teamed to make an INR 400 million (USD 8.64 million) equity investment in Vistaar Livelihood Finance, an Indian microfinance institution catering to non-agricultural female entrepreneurs. While their stake in Vistaar was not disclosed, Brahmanand Hegde, CEO of Vistaar, stated that the two companies had bought a “substantial minority” in the company.
MICROCAPITAL BRIEF: The European Fund for Southeast Europe (EFSE) Pledges $1b to Small Business in Southeast Europe In Preparation For Annual Meeting to be Held from June 8-10, 2010
European Fund for Southeast Europe (EFSE), an organization based in Germany that attempts to foster economic development in Southeast Europe through the provision of microcredit, pledged EUR 900 million (USD 1 billion) to various financial institutions to support small businesses in the Southeast region of Europe at a press conference held in Skopje, FYR Macedonia. The conference was held in order to prepare for the Fund’s Annual Meeting, which is to be held from June 8-10, 2010 in Ohrid, FYR Macedonia. The money is specifically meant to finance long-term loans to small business, in particular to micro- and small enterprises (MSEs), as well as housing improvement loans to low-income households.
MICROCAPITAL BRIEF: One of Tanzania’s Largest Banks, The National Microfinance Bank (NMB) Gives $63m in Loans to Small and Medium Enterprises (SMEs)
The National Microfinance Bank (NMB), one of Tanzania’s largest banks, has issued loans worth TSH 92 billion (USD 63 million) to about 45,000 small and medium enterprises (SMEs) countrywide [1]. Although NMB was largely privatized in 2005, with 49 percent of its shares in the hands of a consortium of banks and firms primarily in the Netherlands, the government of Tanzania continues to be the majority shareholder. According to Robert Pascal, the head of SMEs at NMB, the loans were issued in an effort to contribute to national social and economic development.
MICROCAPITAL BRIEF: responsAbility Mikrofinanz-Fonds Disperses Total of $3.2m to Microfinance Banks Inecobank of Armenia, AFK of Kosovo, Lazika Capital of Georgia and Coomuldesa of Colombia
The responsAbility Mikrofinanz-Fonds, a microfinance investment vehicle (MIV) founded in 2007, recently reported to MicroCapital that it has executed debt investments totaling USD 3.2 million in four microfinance banks. The largest amount, USD 1.5 million, went to Inecobank, an Armenian bank founded in 1996 with a gross loan portfolio of USD 91.7 million [1]. The MIV reports total assets of USD 108.5 million as of 2009, and is one of four funds operated by responsAbility, the others being responsAbility Base of the Pyramid, responsAbility Global Microfinance Fund and responsAbility Microfinance Leaders Fund.
MICROCAPITAL BRIEF: responsAbility Global Microfinance Fund Invests Total of $2.76m in Microfinance Banks Crezcamos Colombia and Coomuldesa of Colombia and Nueva Vision of Peru
The responsAbility Global Microfinance Fund, headquartered in Switzerland and founded in 2003, has executed debt investments totaling the equivalent of USD 2.76 million to three microfinance banks, according to a report submitted by responsAbility to MicroCapital. The microfinance investment vehicle (MIV) reports total assets of USD 358 million as of 2009 and is one of four funds operated by responsAbility, the others being responsAbility Base of the Pyramid, responsAbility Mikrofinanz-Fonds and responsAbility Microfinance Leaders Fund.
MICROCAPITAL BRIEF: responsAbility Global Microfinance Fund and responsAbility Microfinance Leaders Fund Disperse Total of $750k to Indian Microfinance Investment Vehicles Indian Financial Inclusion Fund and LOK Capital Fund
responsAbility Microfinance Leaders Fund and responsAbility Global Microfinance Fund have executed respective equity investments of USD 411,000 and USD 339,000 in MIVs that invest primarily in Indian microfinance institutions (MFIs) according to a report submitted to MicroCapital.
MICROCAPITAL BRIEF: SHARE Microfin Ltd of India Raises $11m Through Non-Convertible Debentures (NCD) with Assistance from Standard Chartered
SHARE Microfin Ltd, an Indian microfinance institution (MFI) with 2.4 million clients and a gross loan portfolio of USD 353 million, recently raised INR 500 million (USD 11 million) through a private placement of two-year, non-convertible debentures (NCD).
MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Invests $11.3m in Mikrofin of Bosnia and Herzegovina
The European Fund for Southeast Europe (EFSE), a microfinance investment fund based in Luxembourg, recently invested USD 11.3 million in Mikrofin, a for-profit microfinance institution (MFI) based in Bosnia and Herzegovina.
MICROCAPITAL BRIEF: IGNIA Fund I Invests $4m in Mexican Mobile Services Company Finestrella
IGNIA Fund I, a social venture capital fund that aims to support the low-income population in Mexico and other regions of Latin America, recently invested USD 4 million in Finestrella, a Mexican company that offers postpaid mobile plans to consumers without the necessity of a credit history or upfront deposit.
MICROCAPITAL BRIEF: responsAbility Global Microfinance Fund Invests total of $4.6m in Microfinance Banks Inencobank of Armenia, Lazika Capital of Georgia, Aregak of Armenia and Centurion of Russia
The responsAbility Global Microfinance Fund, based in Switzerland founded in 2003, has executed debt investments totaling USD 4.6 million in four microfinance banks. The MIV reports total assets of USD 358 million as of 2009, and is one of four funds operated by responsAbility, the others being responsAbility Base of the Pyramid, responsAbility Mikrofinanz-Fonds and responsAbility Microfinance Leaders Fund.
MICROCAPITAL BRIEF: responsAbility Mikrofinanz-Fonds and responsAbility Global Microfinance Fund Invest Total of $2m in Tanzanian Microfinance Bank PRIDE
responsAbility Mikrofinanz-Fonds and responsAbility Global Microfinance Fund have executed respective debt investments of USD 500,000 and USD 1.5 million in PRIDE (Promotion of Rural Initiative and Development Enterprises Limited), a Tanzanian microfinance institution. PRIDE was founded in 1994 and reports total assets of USD 36.8 million, a gross loan portfolio of USD 27.9 million and a return on assets of 1.93 percent. PRIDE has been primarily funded by Norad, the Norwegian Agency for Development Cooperation [1, 2]. Through a mix of loans and grants, Norad has committed USD 7.3 million to PRIDE. The organization uses a “modified Grameen” methodology where borrowers form groups to guarantee each group member’s loan. Loans range from TZS 50,000 (USD 36) to TZS 100 million (USD 72,706).
MICROCAPITAL BRIEF: Aavishkaar Goodwell India Microfinance Development Company Ltd Invests USD 450,000 in Belstar Investment and Finance Ltd
Aavishkaar Goodwell India Microfinance Development Company Ltd, an Indian-Dutch joint venture company that provides equity finance for microfinance institutions (MFIs), recently invested USD 450,000 in Belstar Investment and Finance Ltd, a non-bank finance company (NBFC) based in Bangalore, India.
MICROCAPITAL BRIEF: ACCION International and Ecobank Partner to Form EB-ACCION Microfinance in Cameroon
EB-ACCION Microfinance, a microfinance institution (MFI) formed by ACCION International, a nonprofit organization with partner MFIs in over 20 countries, and Ecobank, a pan-African bank with a network of over 500 branches in 27 countries, recently launched its first two branches in Cameroon.
MICROCAPITAL BRIEF: Vision Microfinance Fund Invests $2m in EcoFuturo of Bolivia
Vision Microfinance Fund, a Luxembourg-based fund that focuses on microfinance institutions (MFIs) in emerging countries in Latin America, Eastern Europe and Asia, recently invested USD 2 million in EcoFuturo, a Bolivian microfinance institution (MFI) with 43,486 active borrowers and total assets of USD 118 million as of 2009.