The Board of Directors of the European Bank for Reconstruction and Development (EBRD), an international bank established in 1991 to support market economies and democracies in countries from central Europe to central Asia, will meet to discuss an increase in previously announced syndicated loan to Microfinance Bank of Azerbaijan (MFBA).
Category: Deals
MICROCAPITAL STORY: Indian SKS Microfinance Plans to Raise $30m in Equity; Possible Future IPO
To finance its ambitious expansion plans, for-profit microlender SKS Microfinance has announced it plans to raise RUP 1.3 billion (USD 30.3 million) in equity capital through private investors, hoping to increase its equity base from roughly USD 50 to 80 million. SKS’ management plans to use the new funds to double its current customer base of 500,000 over the next two years. To meet its equity target, SKS added that it may induct a new investor onto its balance sheet.
MICROCAPITAL STORY: St Thomas Credit Union of Jamaica (STCCU) to Launch Micro and Small Enterprise (MSE) Unit
St Thomas Co-operative Credit Union Limited (STCCU), a non-profit financial cooperative based in southeastern Jamaica, launched its Micro and Small Enterprise (MSE) unit. The initiative is funded by Private Sector Development Programme (PSDP), a five year technical assistance programme co-funded by the European Union and the Government of Jamaica. In addition to providing financial assistance, the unit will also provide technical assistance including micro-enterprise training programmes and business counselling.
MICROCAPITAL STORY: International Finance Corporation (IFC) and the Inter-American Investment Corporation (IIC) Invest $9.8m in Rio Bravo Group’s Unik S.A. for $148m Microfinance Fund
Two multilateral financial institutions, the International Finance Corporation (IFC) and the Inter-American Investment Corporation (IIC), have recently invested in Unik, a Brazilian issuer of payroll cards and a financial intermediary between Brazil’s lower-income population and financial services. The IFC will obtain a 12 percent equity stake in Unik, while the IIC will gain 8 percent participation through ownership in Unik’s stock.
MICROCAPITAL STORY: Commercial Bank Banco de Crédito del Perú to Lend $1.2m to Microfinance Institution Pro Mujer Peru
Banco de Crédito del Perú will make a USD 1.2 million-equivalent local-currency loan to microfinance institution (MFI) Pro Mujer Peru, according to a statement by the international non-profit Grameen Foundation, a major backer of the transaction.
MICROCAPITAL STORY: International Finance Corporation (IFC) to Join German Development Bank Kreditanstalt für Wiederaufbau (KfW) and Venture Capital Firm Advans Group in Launching Commercial Microfinance Institution Advans Banque Congo; Will Provide up to $3.1m in Debt and Equity
IFC (International Finance Corporation), a member of the World Bank Group, has announced it will provide financial assistance in the launching of commercial microfinance institution (MFI) Advans Banque Congo. Based in the Democratic Republic of Congo, Advans Banque Congo will provide microloans to small enterprises and individuals located in the country’s urban areas. IFC’s support of the commercial MFI is its latest project in a campaign to expand microlending to 400,000 entrepreneurs in Africa’s poorest regions.
MICROCAPITAL STORY: Swiss responsAbility Lends $600k to Honduran COMIXMUL and Peruvian Frontera
CGAP (Consultative Group to Assist the Poor) recently reported that responsAbility Global Microfinance Fund (rAGMF) made two USD 300,000 loans to Latin American Cooperativa Mixta Mujeres Unidas Limitadas (COMIXMUL) and Frontera de San Ignacio.
MICROCAPITAL STORY: Dual Return Loans $1m to FINCA Armenia
In its list of recent transactions, CGAP (Consultative Group to Assist the Poor) reported that Austrian investment firm Dual Return loaned USD 1,000,000 through its Vision Microfinance Fund to nonprofit microlender FINCA Armenia.
MICROCAPITAL STORY: The West Africa Sustainable Economic Initiative (WASEI) of Aruba, a Project of Micro Venture Support (MVS), Offering Over 4.5m Class B Common Stock Shares through the First Such Offering on the MicroFinance Exchange (MFDAQ)
Legally incorporated in Oranjestad, Aruba, the West Africa Sustainable Economic Initiative (WASEI) is a for-profit company which will establish microfinance institutions (MFIs) as well as business incubators to complement the former by training and supporting the borrowers. WASEI is currently offering 4,505,000 Class B Common Stock Shares at USD 1 per share through the MicroFinance Exchange (MFDAQ) as part of the first round in a long-term capitalization effort. As stated in a memorandum available to registered users of MFDAQ, the minimum subscription is 500 shares, investors will have full dividend rights, and those shareholders who purchase interests during the current round of offerings will be granted half the amount that they own, at no additional cost, during round two—to take place at the beginning of year three of operations. Voting rights are reserved for 5,000 Class A shares, all of which will be retained by Micro Venture Support (MVS), the nonprofit parent organization of WASEI. All interested investors must register on http://mfdaq.com/. At the time of writing, a balance of 2,997,500 shares remained.
PRESS RELEASE: Grameen Foundation and Pro Mujer International Guarantee $1.2m Loan from Banco de Credito to Pro Mujer Peru
Source: Grameen Foundation.
MICROCAPITAL STORY: Bangladesh-based ASA to Allocate Funds from Historic $150m Equity Deal Toward Microlending Outside Bangladesh
ASA International, a holding company managed and partially owned by ASA, one of Bangladesh’s largest NGOs, has announced it will use USD $150 million of equity raised from foreign investors to expand commercial lending outside Bangladesh.
MICROCAPITAL STORY: Akiba Commercial Bank of Tanzania to Receive a Total of $5.2m in Capital from Accion Investments in Microfinance, the Hivos-Triodos Fund Foundation, Incofin, Inter-Consult, the Netherlands Development Finance Company, the Parastatal Pension Fund, the Triodos-Doen Foundation, and 70 Private Tanzanian Individuals
Based in Dar Es Salaam, Tanzania, Akiba Commercial Bank (ACB) will receive a total of USD 5.2 million in a capitalization program which includes investments from ACCION Investments in Microfinance (ACCION Investments), the Hivos-Triodos Fund Foundation (HTF), Incofin, Inter-Consult, the Netherlands Development Finance Company (FMO), the Parastatal Pension Fund (PPF), the Triodos-Doen Foundation (TDF), and nearly 70 private Tanzanian individuals. The capitalization effort is coupled with a contract between ACB and ACCION International (ACCION) in which the latter of the two will provide short-term technical assistance and a senior management team.
MICROCAPITAL STORY: Ecobank Looks to Close Deal for 75 Percent Interest in East African Building Society (EABS) with Aim to Focus on Microfinance, Mortgage Finance and Investment Banking
Ecobank, an African regional banking group, is currently in the process of closing a deal in Kenya to acquire a 75 percent interest in Kenya’s East African Building Society (EABS) bank. In order to close the deal, and begin transactions, Ecobank must wait for official legalization. The deal’s value is estimated to total the equivalent of USD 19.3 million.
MICROCAPITAL STORY: Swiss responsAbility Loans $6.4m to Eastern European and Central Asian Microfinance Institutions
CGAP (Consultative Group to Assist the Poor) recently reported that responsAbility Global Microfinance Fund (rAGMF) made loans to several Eastern European and Central Asian microlenders: USD 221,112 to Mikro Aldi, USD 400,000 to HUMO, USD 737,040 to AgroInvest, USD 1,000,000 to Kompanion, USD 1,000,000 to Constanta, USD 1,500,000 to Bai Tushum and USD 1,500,000 to Eskhata Bank.
MICROCAPITAL STORY: Scotiabank Peru Takes 100 Percent Interest in Microfinance Institution (MFI) Banco del Trabajo of Grupo Altas Cumbres
Scotiabank Peru recently announced that it will take 100 percent interest in Banco del Trabajo, a Peruvian unit of Grupo Altas Cumbres, a Chilean financial group that offers financial services throughout Latin America. Previously the third largest bank in Peru, Scotiabank will become the “number one” bank in consumer finance. As the “number two” bank for micro-lending in Peru, Scotiabank aims to use this acquisition to expand its micro-enterprise and consumer finance services. The agreement will also allow Scotiabank Peru to participate in co-branding with Jockey Plaza, another asset of Grupo Altas Cumbres and the countries largest mall.
MICROCAPITAL STORY: Netherlands-based Oikocredit Invests $2.8m in Cambodian Microfinance Institutions Hatha Kaksekar Ltd and AMRET
CGAP (Consultative Group to Assist the Poor) recently reported that Dutch-based Oikocredit made investments in two Cambodian microlenders: a USD 1.28 million loan to HKL (Hatha Kaksekar Ltd) and a USD 1.55 million equity investment in AMRET.
MICROCAPITAL STORY: For-Profit Equitas Microfinance to Raise $12.5m via Private Equity
A new player to India’s microfinance space, Chennai-based Equitas has announced it will enlist the assistance of private equity firms to secure the organization’s second round of funding. Equitas hopes to raise USD 12.5 million from two private equity firms over a two-month period to establish additional branch offices in India’s southern region.
PRESS RELEASE: ACCION Investment in Tanzania’s Akiba Commercial Bank to Expand Microfinance Services
Source: ACCION International.