by Lori Curtis -

MICROCAPITAL STORY: Blue Financial Services, International Bank Plc, and AIG Investments Found Nigerian Blue Intercontinental Micro Finance Bank

Blue International Micro Finance Bank Limited (BIMFB), a newly created Nigerian micro finance bank, has begun operations in Nigeria, which will be using its capital base of N3 billion (USD 25 million) to provide micro loans to Nigerians. Blue Intercontinental Micro Finance Bank Limited is a partnership between International Bank Plc and Blue Financial Services of South Africa. This N3 billion (USD 25 million) is N2 billion (USD 17 million) over what is required by the Central Bank of Nigeria for starting up a microfinance bank in the country, and is reportedly the first to begin operations throughout different states in Nigeria, according to Business Day.

by Jeffrey Erfe -

MICROCAPITAL STORY: The Philippine Government Grants $3.7m to Five Microfinance Institutions: Rural Green Bank of Caraga, Enterprise Bank, People’s Bank of Caraga, Talacogon Agro-Industrial Multi-Purpose Development Cooperative, and Rural Bank of Placer

In August, the Philippine government dispersed PHP 169.7 million (USD 3.7 million) in loans to five microfinance institutions (MFIs) in the Caraga region of Mindanao in accordance with the Rural Micro Enterprise Promotion Program (RuMEPP).  The Small Business Corporation (SBC), a government finance agency, funneled the loan to the Rural Green Bank of Caraga, the Enterprise Bank, the People’s Bank of Caraga, the Talacogon Agro-Industrial Multi-Purpose Development Cooperative (TAMDECO), and the Rural Bank of Placer, which in turn redistributed the funds as loans to thousands of micro-entrepreneurs in Caraga.

by Jeffrey Erfe -

MICROCAPITAL STORY: AIG Investments Provides Equity for Nigeria’s Blue Intercontinental Micro Finance Bank

On September 18, AIG Investments (AIG), the asset management division of American International Group Inc., announced that its Global Emerging Markets Fund II LP will invest equity in the Blue Intercontinental Micro Finance Bank (BIMFB), a microfinance institution (MFI) that promotes financial services and products within Nigerian retail markets. The exact terms of the investment were not disclosed.

by Greg Casey -

MICROCAPITAL STORY: A Little World (ALW) of India Closes Series of Financing Totaling $6.3m from Investors including the Bellwether Microfinance Fund, the India Financial Inclusion Fund and Legatum Ventures

A Little World, a technology company based in Mumbia, India, recently finished a round of funding which brought in INR 287m (USD 6.3m). The investors included the Bellwether Microfinance Fund, the India Financial Inclusion Fund and Legatum Ventures. The investments, which were facilitated by Intellecap, are intended to help build ALW’s product portfolio. ALW focuses on using banking technologies to provide low cost financial services to those at the bottom of the economic period.

by Ryan Benson -

MICROCAPITAL STORY: Indian For-profit Equitas Microfinance Raises $12.5 million in Equity Capital from Bellwether Fund, Indian Financial Fund, MicroVentures SPA

Indian microlender Equitas Microfinance recently announced it successfully raised RUP 500 million (USD 12.5 million) in additional capital from existing investors Bellwether Microfinance Fund, MVA Ventures (a holding of MicroVentures SPA) and Indian Financial Fund.

by Greg Casey -

MICROCAPITAL STORY: Inter-American Development Bank (IDB) Multilateral Investment Fund (MIF) to Invest USD 5m in Mexican IGNIA Social Investment Fund in Addition to Previous USD 25m Loan from the IDB’s Opportunities for the Majority Initiative (OM)

The Inter-American Development Bank (IDB) has made a USD 5m equity investment in the IGNIA Social Investment Fund through the Multilateral Investment Fund (MIF) and a USD 205,000 technical cooperation grant. The IGNIA venture capital fund also received a recent USD 25m loan from the IDB’s Opportunities for the Majority Initiative (OM).

by Ryan Benson -

MICROCAPITAL STORY: British Government-sponsored CDC Group to Invest $10.5m of Equity in Luxembourgian Venture Capital Firm Advans SA

Advans SA, a Luxembourgian venture capital firm that specializes in microfinance ventures, recently announced it raised EUR 7 million (USD 10.5 million) in equity capital from CDC Group, a private equity fund of funds sponsored by the British government. CDC’s investment aims to support Advans’ expansion of investments in Asian and African microfinance institutions (MFIs). The deal will consist of two financing rounds: CDC has committed to an initial round of EUR 3 million (USD 4.5 million) in equity, and plans to invest EUR 4 million (USD 6.5 million) of equity during a subsequent round of Advans-planned fundraising in early 2009.

by Greg Casey -

MICROCAPITAL STORY: Tanzanian Government Will Bar Kenya and Uganda from Participating in National Microfinance Bank Initial Public Offering Worth USD 55m

The Government of Tanzania will sell a 21 percent stake in National Microfinance Bank (NMB), valued at USD 55m, starting August 18th. The Tanzanian Government will bar members of other countries, including Kenya and Uganda, from participating in the initial public offering (IPO), apparently violating the East African Customs Management Act.

by Jocelyn Cheng -

MICROCAPITAL STORY: Lok Capital and the Dell Foundation Announce Investment in Indian Microfinance Organization Arohan

Lok Capital, a microfinance venture capital fund focused on India, and the Dell Foundation, a charitable organization, have announced an investment in Arohan Financial Services Limited, a for-profit Indian microfinance institution (MFI).  The size of the equity investment was not disclosed. Arohan offers microcredit and credit-linked insurance to urban women in Kolkata, and it plans to use the funds to expand operations to other urban centers in eastern India and to expand its product offering.

by Jocelyn Cheng -

MICROCAPITAL STORY: International Finance Corporation (IFC) Loans the Kyrgyz Investment and Credit Bank (KCIB) USD 5 million to Expand Microfinance Operations and Provides Mortgage Lending Advisory Services to Microfinance Institution Bai Tushum in the Kyrgyz Republic

The International Finance Corporation (IFC), a member of the World Bank Group, announced a pair of microfinance and mortgage initiatives in the Krygyz Republic. On the microfinance side, IFC is extending a USD 5 million loan to the Kyrgyz Investment and Credit Bank (KICB), a full-service commercial bank in the Krygyz Republic. The proceeds will be directed toward expanding lending to micro, small and medium businesses in remote areas of the Krygyz Republic, as well as supporting agricultural projects.

by Jocelyn Cheng -

MICROCAPITAL STORY: Nigerian Microfinance Institution Lift Above Poverty Organization (LAPO) Obtains USD 5 million Loan from Standard Chartered Bank Nigeria with Grameen Foundation Guarantee

Nigerian microfinance institution Lift Above Poverty Organization (LAPO) recently obtained a USD 5 million loan from Standard Chartered Bank Nigeria, the local subsidiary of the British bank Standard Chartered Bank Plc. The loan was structured in local currency and was backed by a USD 2 million guarantee from the Grameen Foundation under its Growth Guarantees program. The loan represents Standard Chartered Bank Nigeria’s largest transaction with a microfinance institution.