The Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse, reported LOKMicro, a Eastern Europe microfinance institution (MFI), received a loan of USD 1.4 million from responsAbility Mikrofinanz-Fonds, a loan of USD 2.0 million from responsAbility Microfinance Leaders Fund and a loan of USD 2.8 million from the VDK MFI Loan Portfolio.
Category: Deals
MICROCAPITAL SPECIAL FEATURE: 2007 Equity Investments in Small and Medium Sized Microbanks, Part 1 of 3
2007 has proven to be a productive year for international microfinance equity investments in small and medium sized microbanks. The Microfinance Capital Markets (MCM) Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse, reported 25 investments in 13 small and medium sized Microbanks by 21 investors.
NEWS WIRE: Bangladesh: Standard Chartered to Loan $55m to Microfinance Institution BRAC
Source: Financial Times.
MICROCAPITAL STORY: International Fund for Agricultural Development (IFAD) Contributes USD 35 Million to Microfinance Program in Pakistan
The International Fund for Agricultural Development (IFAD), a specialized agency of the United Nations, has announced that it will contribute a USD 35 million loan to a new microfinance program worth USD 46 million in Pakistan that aims to expand its microfinance services.
MICROCAPITAL STORY: responsAbility Global Microfinance Fund of Switzerland Lends $500k to Microfinance Institution ENLACE and $487k to Microfinance Institution EDPYME Confianza
The Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse, reported responsAbility Global Microfinance Fund, a Luxembourg-based fund, issued a loan of USD 500,000 to ENLACE and a loan of USD 487,439 to EDPYME Confianza, both Latin America microfinance institutions (MFIs).
MICROCAPITAL STORY: State-owned Indian Bank of Baroda (BoB) Partners with Centre for Micro Finance (CMF) for Microfinance Initiative in Dungarpur
As part of its initiative to reach the unbanked Indian population with microfinance, state-owned Bank of Baroda (BoB) has signed a memorandum of understanding (MoU) with the Centre for Micro Finance (CMF), a microfinance research institute. As of March 2007, the Bank of Baroda had 38,000 employees and 2,700 branches in 21 countries. It had USD 36.4 billion (INR 143,146 crore or 1.43 trillion) in total assets and a return on assets (ROA) of 0.72 percent.
MICROCAPITAL STORY: Oikocredit of the Netherlands Lends $1m to Latin America Microfinance Institution IDEPRO
The Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse, reported Oikocredit, a co-operative financial development institution in the Netherlands, issued a loan of USD 1 million to IDEPRO (Desarrollo de la Pequeña Unidad Productiva), a Latin America microfinance institution (MFI).
MICROCAPITAL STORY: Rural Impulse Fund Lends $500k to Nicaraguan Microfinance Institution PRESTANIC
The Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse, reported the Rural Impulse Fund, an investment fund managed by Incofin, based in Antwerp, Belgium, issued a loan of USD 500,000 to PRESTANIC, a rural Latin America microfinance institution (MFI).
MICROCAPITAL STORY: The IFC Agrees to Lend Sekerbank in Turkey $52m to Expand its Microfinance Activities
The International Finance Corporation (IFC), a member of the World Bank Group, has agreed to provide Sekerbank, one of Turkey’s leading private commercial banks, with a loan worth USD 52 Million (EUR 36 Million) over a seven-year period to help expand its microfinance and small and medium enterprise program. The loan has been designated to help the bank reach more than 10,000 micro and small entrepreneurs through its nationwide network of 230 branches across Anatolia.
PRESS RELEASE: ACCION Backs Two Microfinance Equity Funds – Lok in India and AfriCap Africa
MICROCAPITAL STORY: European Bank for Reconstruction and Development (EBRD) Provides $2m Guarantee to Kyrgyz Microfinance Institution Bai Tushum
The European Bank for Reconstruction and Development (EBRD) is providing Bai Tushum Financial Foundation (BTFF), a leading microfinance institution (MFI) in the Kyrgyz Republic, with a USD 2 million guarantee for local currency loans from local banks. Bai Tushum will use the finances to on-lend to local micro and small enterprises.
MICROCAPITAL STORY: JPMorgan Launches Social Sector Finance Unit to Bring Financial Services to Microfinance and Social Enterprises
JPMorgan, a US-based global financial services firm with assets of USD 1.5 trillion and operations in more than 50 countries, has announced the launch of a Social Sector Finance (SSF) unit within its Investment Bank. The unit will leverage JPMorgan’s existing products and expertise to bring financial services to microfinance and social enterprises. The unit’s service offering will include capital markets, structured products, and principal investments and will pursue a double bottom line strategy of both social benefits and financial returns.
MICROCAPITAL STORY: PBS Program “NOW” Asks “Who’s Making Money from Microcredit?”
The Public Broadcasting Service (PBS) program, “NOW,” covered a story in September 2007 on microfinance entitled “Who’s Making Money from Microcredit?” The twenty minute segment explores the financial success of Mexican microfinance institution (MFI) Compartamos and its April 2007 initial public offering (IPO) that generated over USD 400 million for investors. Supporters of the Compartamos IPO hail the transaction as an achievement that signifies the emergence of the microfinance industry in mainstream financial markets. However, critics accuse the microfinance lender of exploiting the poor in an effort to reap profits.
PRESS RELEASE: Africa: Compassion International to Provide $5m to Expand African Microfinance Partnership With Opportunity International
NEWS WIRE: China: First Foreign-Invested Microfinance Company Opens Doors With Funding From Microcred, IFC, FW Bankengruppe and AIG
MICROCAPITAL STORY: UPS to Issue Grants Totaling USD $1m to Microfinance Organizations ACCION International, Opportunity International and FINCA International
United Parcel Service (UPS), a global package delivery service founded in 1907, has created a Centennial Grants Fund in honor of UPS’s 100 year anniversary. UPS’s fund has issued USD 1 million to three microfinance organizations that support micro-entrepreneurs across the globe. ACCION International will receive USD 400,000, Opportunity International will receive USD 390,000 and FINCA International will receive USD 210,000. The creation of the Centennial Grants Fund is the first time UPS has dedicated such a large portion of its corporate philanthropy to microfinance and micro-lending.
MICROCAPITAL STORY: Mexican Microfinance Lender Financiera Independencia SAB Plans Initial Public Offering
Financiera Independencia, a Mexican microfinance institution (MFI) founded in 1993, has announced plans in a recent prospectus for a public offering of up to 20 percent of the company through primary and secondary offerings in Mexico and international markets. According to estimates on CNNMoney.com, the offering will raise up to 3.26 billion Mexican pesos or equivalent USD 305.6 million through the sale of 136 million shares which includes a provisional over-allotment of 17.7 million shares. Financiera Independencia will use net proceeds from the primary offering to fund new lending, expand its branch network, and for other corporate development initiatives.
MICROCAPITAL STORY: Swiss responsAbility Microfinanz-Fonds Loans over $1.3m to Eastern Europe Microfinance Institution MIKROFIN
The Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse, reported responsAbility Microfinanz-Fonds, a Luxembourg-based fund, has issued a loan of USD 1.36 million to MIKROFIN, an Eastern Europe microfinance institution (MFI).