This story comes to us courtesy of LiveMint.com, a division of the Wall Street Journal.
Continue reading “MICROCAPITAL STORY: New Zealand-based Billionaire’s Legatum group buys $4.5 million Stake in Indian Microfinance Firm”
Category: Deals
PRESS RELEASE: World Bank Provides Additional US$15 Million for Urban Microcredit Services in Bangladesh
WASHINGTON— The World Bank today approved additional financing of US$15 million to the Government of Bangladesh, designed to support poor rickshaw-pullers that have been adversely affected by a ban on Non-Motorized Transport (NMT) on certain roads in Dhaka, the nation’s capital.
The additional financing to the Second Poverty Alleviation Microfinance Project, which was approved by the World Bank in January 2001, will help finance the costs associated with scaling up the Urban Microcredit component of the project to reach an underserved segment of the urban poor (poor rickshaw-pullers). The financing will be passed-on by the Government as a grant to the apex microfinance institution Palli Karma-Sahayak Foundation (PKSF) for activities that will scale up the project’s impact and development effectiveness.
PRESS RELEASE: MIF USD 4mm Loan and USD 815,000 Technical Cooperation will Promote Financial Democracy in Argentina
The Inter-American Development Bank’s Multilateral Investment Fund announced today the approval of a US$4 million loan and a US$815,000 technical cooperation grant to Cordial Microfinanzas S.A. for a program to promote financial democracy in Argentina.
MICROCAPITAL STORY: South Asian Bank CIMB intends to deliver RM515 million (USD 152 million) in Micro-credit Loans
The micro-credit division of Malaysia based CIMB bank, CIMB Express, is aiming to have a loan book of USD 152 million by end of this year, with RM300 million (USD 88 million) already lent as of March 2007.
MICROCAPITAL STORY: EBRD Loans USD 1mm to Frontiers LLC to Support Microfinance in Kyrgyzstan and Tajikistan
The European Bank for Reconstruction and Development (EBRD) has announced a USD 1mm loan it will provide to Frontiers LLC, the wholesale microlending company based in Bishek, Kyrgyzstan. The loan will be accompanied by USD 100,000 of technical cooperation intended to support the institutional development of Frontiers, which was established in 2003 by US non-profit organisation ACDI/VOCA with USD 3mm of start-up capital. At the year end 2006 Frontiers reported total fund assets of USD 4,424,952 to MIX Market, the microfinance information clearinghouse, and 30 active microfinance investments. Frontiers provides financing to non-banking financial institutions in Central Asia to lend to micro-entrepreneurs. Rob Fries, chairman of the board of directors for Frontiers, thinks the support from EBRD will help Frontiers in its role in the “development of the financial sector in Central Asia.”
MICROCAPITAL STORY: SKS Microfinance, India, and Citibank Announce USD 44mm Financing Programme with Support from Grameen Foundation
Indian microfinance institution (MFI) SKS Microfinance, has announced a USD 44mm (Rupees 1.8bn) financing partnership with Citibank, part of the Citigroup global financial services organisation. Citibank India will purchase loans which SKS will continue to originate and service, sharing the credit risk of the transaction. Grameen Foundation will also be an integral part of the risk sharing structure as it will provide a limited (but as of yet unstated) guarantee to SKS as part of its Growth Guarantee initiative launched in 2005. SKS has been a Grameen Foundation partner since 2002.
Grameen Foundation Supports Citibank’s USD 1mm Financing of Nigerian Microfinance Institution LAPO
Citibank, part of the Citigroup global financial services company, will provide a USD 1mm Nigerian naira equivalent structured loan through it’s subsidiary, the Nigerian International Bank (NIB), to Lift Above Poverty Organisation (LAPO), a Nigerian microfinance institution (MFI). The loan is supported by a USD 500,000 guarantee from the Grameen Foundation. The deal is LAPO’s first commercial transaction with a bank, and the first transaction between Citibank and a Nigerian MFI. The investment comes at a time when many Nigerian MFI’s are struggling to meet minimum capital requirements (see previous article on microcapital.org) among other standards to be introduced in forthcoming regulation of the industry, due to be enforced by the Central Bank Nigeria (CBN) in December 2007 (see previous article on microcapital.org).
Morgan Stanley and BlueOrchard Finance Launches USD 108mm Bond Backed by Microfinance Loans
Morgan Stanley, a New York based investment bank, and BlueOrchard Finance, a Swiss microfinance fund management company, have announced the launch of a USD 108mm bond backed by loans issued to microfinance institutions (MFI’s). The bond will be given a rating by Standard & Poor, a major independent credit ratings agency.
Unitus Arranges Loan for MBK Ventura, an Indonesian Microfinance Institution, with The Dignity Fund and MicroCredit Enterprises
Unitus, a non-profit consultancy and venture capital firm, has recently announced a USD 1.2mm equivalent loan it has arranged for MBK Ventura, an Indonesian microfinance institution (MFI), 3 months after the organisation became a Unitus partner. The loan, structured in Indonesian rupiah, is made up of two USD 600,000 contributions from The Dignity Fund, LP, a microfinance fund based in California, and MicroCredit Enterprises, a non-profit organisation also based in California. Unitus have said that the loan is being provided at “an affordable interest rate” although avoided giving the exact rate.
Breaking the Mould: Mexican Banco Compartamos Drags Microfinance into a Controversial New Era Despite the Kicking and Screaming
On Friday April 20th Banco Compartamos made an initial public offering (IPO) of 30% of the bank’s assets to stock markets in New York (80%) and Mexico (20%), worth USD 467mm according to the International Financial Corporation (IFC), the private sector arm of the World Bank. Banco Compartamos, the largest microfinance bank in Mexico, was founded in 1990 and was authorised on June 1st 2006 by the Mexican government to operate as a bank, until which point it had operated as a ‘specialised lending firm.’ The move sent shockwaves throughout the microfinance industry and has caused some vigorous debate.
Dutch Hivos-Triodos Fund and Triodos Fair Share Fund Make a USD 1.45 mn Loan to K-REP Bank of Kenya
More deals coming to us courtesy of the April 2007 CGAP-MIX newsletter. The Kenyan full-scale financial services bank K-REP received a USD 1.45 loan from the Hivos-Triodos Fund and the Triodos Fair Share Fund. K-REP reported to the MIX Market, the microfinance information clearinghouse, at the end of 2006 as having a gross loan portfolio of USD 54 mn and USD 74.9 mn in total assets spread over 114,301 active borrowers. It has a 17.2 percent capital to asset ratio, a 481.36 percent debt to equity ratio, and a 43.95 percent deposit to loan ratio during the same period.
Continue reading “Dutch Hivos-Triodos Fund and Triodos Fair Share Fund Make a USD 1.45 mn Loan to K-REP Bank of Kenya”
Dutch Oikocredit Invests over USD 1.2 mn in Three Filipino Microfinance Institutions: ASA Philippines Foundation, National Confederation of Cooperatives in the Philippines, Milamdec Foundation
More deals coming to us courtesy of the April 2007 CGAP-MIX newsletter. The Dutch financial development cooperative Oikocredit made three loans totaling over USD 1.2 mn to three separate microfinance institutions (MFIs) in the Philippines. ASA Philippines Foundation, which does not report to MIX market, the microfinance information clearinghouse, or make its financial data available to the public, received a loan of USD 625,500. The National Confederation of Cooperatives in the Philippines (NATCCO) received a loan of USD 417,500. NATCCO is a credit union that was created in 1977 by the joining of five regional training centers in the Philippines. NATCCO also does not report to the MIX market.
Belgian Impulse Microfinance Investment Fund (Incofin) Purchases a 10% Capital Share of Bolivian Microfinance Institution FIE and Makes Loans to Uganda Microfinance Limited and Sinapi Trust, Ghana
Another story courtesy of the CGAP/MIX Capital Markets newsletter. The Belgium-based Impulse Microfinance Investment Fund (Incofi) invested USD 1.4 mn in the Bolivian microfinance institution (MFI) Fondo Financiero Privado para el Fomento a Iniciativas Economicas ( through a purchase of a ten percent share in their capital stock. FIE was founded in 1985 to be an equitable and inclusive financial institution for micro and small entrepreneurs in Bolivia. In addition to short medium and long term loans it offers a venue for voluntary savings, fund transfer services, and training and consulting for micro and small businesses. According to MIX market, the microfinance information clearinghouse, FIE had a gross loan portfolio of USD 101 mn at the end of 2006 and USD 129 mn in total assets during the same period.
Continue reading “Belgian Impulse Microfinance Investment Fund (Incofin) Purchases a 10% Capital Share of Bolivian Microfinance Institution FIE and Makes Loans to Uganda Microfinance Limited and Sinapi Trust, Ghana”
MicroCredit Enterprises Partners with Tokyo Star Bank to Create a USD 4.8 mn Revolving Line of Credit for Microfinance Institutions
MicroCredit Enterprises (MCE), a new capitol leveraging model, announced the creation of a partnership with Tokyo Star Bank (TSB) to expand microfinance. TSB issued a USD 4.8 mn revolving line of credit to MCE which will be channeled directly to microfinance institutions (MFIs) that meet MCE’s lending criteria and due diligence requirements.
Continue reading “MicroCredit Enterprises Partners with Tokyo Star Bank to Create a USD 4.8 mn Revolving Line of Credit for Microfinance Institutions”
Hivos-Triodos Lends USD 1 mn to FINCA Ecuador and USD 800,000 to Edpyme Crear Tacna in Peru
Another story courtesy of the CGAP/MIX capital markets newsletter. Hivos-Triodos, a microfinance fund based out of the Netherlands, made two loans to microfinance institutions (MFIs) in Latin Americr worth a total of USD 1.8 mn. The first of the two loans is a USD 1 mn investment in FINCA Ecuador, which was established in 1994 “to provide financial services and products to the lowest income families in Ecuador.” It reported to MIX marke, the microfinance information clearinghouse, as having a gross loan portfolio of USD 27.9 mn and USD 25 mn at the end of 2006.
Nigerian Microfinance Institution LAPO Receives a USD 1.04 mn Loan from CitiBank Enhance by a USD 500,000 Guarantee from the Grameen Foundation
Another story courtesy of the CGAP/MIX capital markets newsletter. Nigerian microfinance institution (MFI) Lift Above Poverty Organization (LAPO) received a USD 1.04 mn loan from Citibank. The loan was enhanced by a USD 500,000 guarantee from the Grameen Foundation. LAPO was established in 1987 to provide microloans, voluntary saving services, and training and consulting. They reported to MIX market, the microfinance information clearinghouse, as having USD 11.3 mn in total assets and a gross loan portfolio of USD 7.8 mn spread among over 84,000 active borrowers as of 31 December 2006.
Switzerland-based Symbiotics Intermediates a USD 3 mn Loan from Microfinance Loan Obligations to Foundation for International Community Assistance (FINCA) Azerbaijan
Another story courtesy of the CGAP/MIX Capital Markets newsletter. The Foundation for International Community Assistance (FINCA) in Azerbaijan received a USD 3 mn loan from the Microfinance Loan Obligations, S.A. through the intermediary of the Switzerland-based facilitator, Symbiotics. FINCA Azerbaijan is a microfinance institution (MFI) that was established in 1998 to “provide financial services to the world’s poorest families.” According to MIX market, the microfinance information clearinghouse, FINCA Azerbaijan has USD 20.9 mn in total assets and a gross loan portfolio of USD 19.2 mn spread throughout nearly 50,000 active borrowers (as of 31 December 2006). Microfinance Loan Obligations does not report to the MIX market. Symbiotics is an investment intermediary that has facilitated over USD 150 mn in loans. Symbiotics also provides investment services to fund managers and investors specializing in microfinance.
responsAbility Global Microfinance Fund Makes Loans Totaling over USD 2.2 mn to Microfinance Institutinos in the Philippines, Peru, Nicaragua and Moldova
This story comes to us courtesy of the CGAP-MIX newsletter. In the wake of several other microfinance investments this month, responsAbility Global Microfinance Fund continues its streak with four additional loans ranging from USD 200,000 to USD 1 mn, totaling USD 2.2 mn. The first of the loans is a USD 200,000 investment going to the Cooperative Rural Bank of Bulacan of the Philippines. The Cooperative Rural Bank of the Bulacan does not report to MIX market, the microfinance information clearinghouse, nor does it make its financial data available to the public.