Cashpor, an Indian microfinance institution (MFI), received a USD 1.16 mn line of credit from HDFC Bank, also based in
Continue reading “Indian Microfinance Institution Cashpor Receives a USD 1.16 mn Loan from HDFC Bank and a USD 111,500 Guarantee from the Grameen Foundation”
Category: Deals
Dutch Foundation Triodos-Doen and Hivos-Triodos Fund provide a USD 1.3 mn Loan to Microfinance Institution Kazakhstan Loan Fund
The Kazakhstan Loan Fund (KLF), a Kazakh microfinance institution (MFI) received the equivalent of USD 1.3 mn in loans through a partnership with Triodos-Doen and the Hivos-Triodos Fund. KLF, whose is mission is to “improve the life conditions of our community through offering financial and non financial services to the population,” provides peer and individual lending services. As of 31 December 2006, KLF has a gross loan portfolio of USD 26.2 mn and USD 41 mn in total assets, according to MIX market, the microfinance information clearinghouse. KLF also reported a 17.53% capital to asset ratio and 470% ratio of debt to equity. At the end of 2005, KLF was 152.38% self-sufficient.
EBRD supports microfinance in Tajikistan, by providing a $4 million loan to the First MicroFinanceBank
The European Bank for Reconstruction and Development (EBRD) is extending support to micro and small enterprises in Tajikistan, by providing a USD 4 mm loan to The First MicroFinanceBank (FMFB)-Tajikistan. The loan comes under the Tajikistan Micro and Small Enterprise Finance Facility (TMSEFF), established in 2003 by EBRD to provide loans to micro, small and medium-sized enterprises. The objective of the Tajik MSE Finance Facility is to develop the necessary skills and capacity in the Tajik financial system/banking sector to provide access to finance to creditworthy Micro and Small Enterprises (MSEs) nationwide. According to the press release, since the establishment of the facility more than 18,000 loans with an average value of USD 3,000 have been provided as of 2006 and loans to female entrepreneurs constitute 41 per cent of the portfolio.
eBay Enters Microfinance, Part 1 of 5: Leaving the Dangerous Work to the Little Guys
eBay, the online marketplace, recently announced (or was it a public relations miscue?), that it has bought MicroPlace, an on-line marketplace for microfinance securities. According to news service Auctionbytes.com, Gary Briggs, eBay’s chief marketing officer in answer to a question from the audience let slip that MicroPlace is “a group that we purchased that is making microfinance loans available to the developing world in particular, and we think- particularly as it relates to PayPal- that we think that’s a great thing to be able to do for the global community.”
Deutsche Bank’s Global Commercial Microfinance Consortium (CGMC) lends over USD 2 mn to 4 Microfinance Institutions in Eastern Europe: Zena za Zena, Prizma, MicroInvest and NorMicro
The Global Microfinance Consortium lent over the equivalent of USD 2 mn to four microfinance institutions (MFIs) in three countries in Eastern Europe. Zena za Zena of Bosnia & Herzegovina received a loan of the equivalent of USD 790,000 as a second installment of a USD 1.3 mn (EUR 1 mn) loan. Zena za Zena reports to the MIX Market, the microfinance information clearinghouse, under the name "Women for Women," the English version of its name. At the end of 2005, it reported to having a gross loan portfolio of USD 2.7 mn and USD 2.8 in total assets. Prizma, also of Bosnia & Herzegovina received the second tranche of their USD 1.3 mn loan as an installment of USD 658,800. Prizma is a nonbank financial institution founded in 1997 “to support poor and low-income women formed into solidarity groups in small towns and rural areas.” MIX Market reports a gross loan portfolio of USD 15.9 mn and USD 17.2 mn in total assets as of 31 December 2006. MicroInvest of Moldova received its third and final tranche of a USD 988,600 loan as a USD 329,400 installment. It is a nonbank financial institution based out of Moldova. It was established in 2003 by the Soros Foundation Moldova and the NGO the Moldova Microfinance Alliance to microfinance to small businesses in rural and urban areas in the Republic of Moldova. It reports to MIX Market as having a gross loan portfolio of USD 4.1 mn and USD 6.9 mn in total assets as of 31 December 2006. During the same period, its capital/asset ratio was 23.73% and its debt/equity ration was 321.33%. The final piece of the Global Commercial Microfinance Consortium’s loan went to NorMicro of Azerbaijan as a USD 250,000 first tranche of a total USD 500,000 loan. NorMicro is a non-bank financial institution established in 1998. It has gross loan portfolio of USD 2.6 mn and USD 2.9 mn in total assets as of 31 December 2006, according to MIX Market. During the same period, it had a 79.66% debt/equity ratio and a 55.66% capital/asset ratio.
Kashf Foundation and Citibank Announce First Stage of USD 22mm Term Funding Structure Involving the US Overseas Private Investment Corporation åö A First for Microfinance in Pakistan
The Kashf Foundation, a Pakistani microfinance institution (MFI) founded in 1996, and Citibank Pakistan, a subsidiary of the Citigroup international financial services organisation, announced the first stage of a USD 22mm term financing package arranged by Citibank. It is the first commercial structured finance deal of its kind in the microfinance sector in Pakistan. In the first tranche Citibank will provide Kashf with a USD 6mm 5 year funding, with risk participation by the Overseas Private Investment Corporation (OPIC), a US government agency established in 1971 to help US business interests manage risk abroad. The next two tranches worth USD 8mm each will be announced in the near future and Citibank Pakistan will act as an advisor in arranging these term loans.
ResponsAbility Global Microfinance Fund Provides USD 500,000 to Jordan-based National Microfinance Bank (Alwatani)
responsAbility Global Microfinance Fund, a Luxembourg-based microfinance fund, provided a loan totaling USD 0.5 mn to the National Microfinance Bank (Alwatani) of Jordan. Alwatani is a private shareholding of a non-profit company with the mission of delivering “sustainable financial services to micro and small entrepreneurs in Jordan, particularly women.” It was created as a partnership between King Abdullah II Fund for Development, AGFUND, a nonprofit regional development program, and two private sector investors. As of 31 December 2006, Alwatani has 9,048 active clients, of which 7,179 are female, and reports 9,738 total loans disbursed totaling to the equivalent of USD 10.2 mn. Alwatani reports covering 56% of its costs with operating revenue.
Deutsche Bank’s Global Commercial Microfinance Consortium (CGMC) Makes its First USD 600,000 Tranche of a USD 3 mn Loan to Vietnamese Capital Aid Fund for Employment of the Poor in Cambodia (CEP)
The Global Commercial Microfinance Consortium made the first installment of its USD 3 mn loan to the Capital Aid Fund for Employment of the Poor (CEP) of Cambodia, totaling to USD 600,000. CEP is a nonprofit organization based in Vietnam whose mission is “to assist the poor in developing their business and meeting their basic needs, reducing unemployment in the province, and supporting a spirit of mutual assistance in work and the social environment.” It reported to MIX market, the microfinance information clearinghouse, on 31 December 2006 as having a gross loan portfolio of USD 9.9 mn and USD 12.2 mn in total assets. Its capital/asset ratio is 51.79% and its debt/equity ratio is 93.09%.
Government of Pakistan and Asian Development Bank (ADB) Sign Grant to Expand Outreach of Microfinance; First MicrofinanceBank and Kashf Foundation Help
The government of Pakistan and the ADB, a multilateral financial development foundation founded in 1966, have signed a USD 2mm grant agreement which plans to expand the outreach and services of microfinance in Pakistan. The grant comes from the ADB’s Japan Fund for Poverty Reduction (JFPR), a grant facility established in 2000 by the government of Japan and the ADB. The agreement was signed by Peter Fedon, the ADB Pakistan country director, and Muhammad Saleem Sethi, joint secretary for the Ministry of Economic Affairs and Statistics.
responsAbility lends USD 3.9 to 7 Latin American Microbanks: FDL, ADMIC, Prestanic, ProCredit Ecuador, AMC-SV, Fundación Campo, Corporación de Productores Café
ResponsAbility Global Microfinance Fund, a Luxembourg-based fund, provided loans to 7 Latin American microfinance institutions (MFIs) totaling over USD 3.9 mn. The first USD 1 mn loan went to Nicaraguan nonprofit MFI Fondo de Desarrollo Local (FDL). FDL reported to MIX market, the microfinance information clearinghouse, to having a gross loan portfolio of USD 43.8 mn at the end of 2006 and USD 55.2 mn in total assets during the same period. It has USD 9.7 mn in total equity and 61,555 active borrowers. ResponsAbility lent USD 981,600 to Mexican MFI AsesorÌÐa Dinámica a Microempresas (ADMIC), which most recently reported to MIX market on 31 December 2002. At that point, ADMIC had 6,630 active borrowers, a gross loan portfolio of USD 3.1 mn and USD 4.9 mn in total assets. The next loan of USD 600,000 went to Nicaraguan MFI Prestanic. As of 31 December 2005, Prestanic has 5,968 active borrowers, a gross loan portfolio of USD 6.9 mn and USD 8.8 mn in total assets. Banco ProCredit of Ecuador received at USD 500,000 loan. As of 31 December 2006, Banco ProCredit reported to MIX market as having 39,350 active borrowers, a gross loan portfolio of USD 117.4 mn and USD 136.9 in total assets. A USD 400,000 loan went to Sociedad Cooperativa de Ahorra y Crédito of El Salvador, which, as of 31 December 2005, has 8,783 active borrowers, a gross loan portfolio of over USD 6.5 mn and USD 8.56 mn in total assets. Another MFI from El Salvador, Fundación Campo, received a loan of USD 200,000. It reported at the end of 2005 to having 2,962 active borrowers, a gross loan portfolio of USD 2.1 mn and over USD 2.5 mn in total assets. The Peruvian MFI Corporación de Productores Café, which does not report to MIX market, rounds out the group by receiving USD 250,000 in loans.
Continue reading “responsAbility lends USD 3.9 to 7 Latin American Microbanks: FDL, ADMIC, Prestanic, ProCredit Ecuador, AMC-SV, Fundación Campo, Corporación de Productores Café”
IFC sign partnership with Crédit Agricole in France and Environmental Quality International in Egypt to support financial and microfinance institutions (MFIs) in Africa
The International Finance Corporation (IFC), the private sector arm of the World Bank Group established in 1956, has recently signed a partnership agreement with Crédit Agricole Consultants, a subsidiary of the largest bank (Crédit Agricole) in France, and Environmental Quality International (EQI), a private partnership based in Cairo which acts as a consultant and investor in sustainable development initiatives. The EQI was established in 1981 and operates predominantly in Africa and the Middle East. The two consulting firms will provide advisory services and capacity building to a number of financial institutions in Africa.
Reliance Financial Services Receives $500,000 in Loans from ShoreCap International Ltd. and the Hivos-Triodos Fund
Another story coming to us courtesy of the CGAP-MIX Capital Markets Update newsletter, Reliance Financial Services Company based in Gambia, received a USD 250,000 loan from ShoreCap, and a USD 250,000 loan from Hivos-Triodos Fund. Financial Reliance goal is to increase banking services available to the Gambian Population, thus empowering the nation financially in an effort to reduce poverty. Currently, Financial Reliance does not report to the MIX Market, the microfinance information clearing house, and no financial information about the institution’s performance is currently available.
Sequoia Capital Leads USD 11.5mm Investment in SKS Microfinance based in India
Sequoia Capital, a private equity fund founded in 1972 and based in California, will lead an USD 11.5mm investment into SKS (Swayam Krishi Sangam) Microfinance, a microfinance institution (MFI) based in India. Other stakeholders in the investment include Unitus, a USD 23mm US equity fund established in 2000 to provide funding and consultancy to MFI’s.
Continue reading “Sequoia Capital Leads USD 11.5mm Investment in SKS Microfinance based in India”
USAID Provides 2 Grants Totaling USD 1.35 mn to the US-based Microfinance Network Opportunity International
Opportunity International, a microfinance network based in the
Deutsche Bank Expands on its Microfinance Platform through the Creation of Eye Fund I
We are excited to see microfinance investment infrastructure providing the launch pad for innovations into new sectors.
Deutsche Bank Americas announced a USD 20 mn commitment through 2013 to the Eye Fund I, partnering with the International Agency for the Prevention of Blindness (IAPB), a coordinating, umbrella organization to lead international blindness prevention activities, and Ashoka, a global organization of social entrepreneurs. The Eye Fund I will finance the scaling-up of sustainable eye care hospitals in developing countries innovatively using a market approach to reduce the incidence of blindness among the world’s poor. Much like the microfinance industry, Eye Fund I will provide loans and guarantees to support the development of an affordable eye care industry. There will also be a complementary grant fund that will provide technical assistance, business planning and training to eye care organizations so that they become financially self-sustaining while fulfilling the mission of providing eye care to all. This is the first time that the eye care hospital industry is assuming debt in an organized way.
International Finance Corporation and Andean Development Corporation Join MicroCred Holdings, PlaNet Finance Mexico and Protama as Investors in the Mexican Microfinance Institution MicroCred Mexico
According to an official press release, the International Finance Corporation (IFC), a private sector arm of the World Bank that invests in and advises financially and environmentally sustainable development projects, and the Andean Development Corporation (CAF), a multilateral financial institution, have confirmed their investment in MicroCred Mexico, a microfinance institution created by MicroCred Holdings, a microfinance investment group. IFC will take a 15 percent stake in the capital of Microcred Mexico and CAF will have a 9 percent stake. Other current investors include Microcred S.A., its parent organization, PlaNet Finance Mexico, an international network of non governmental organizations (NGOs) working to develop the microfinance industry, and the Mexican private equity funds, Protama.
Indian ICICI Lombard General Insurance Allies with the Small Industries Development Bank of India (SIDBI) to Include Non-Life Insurance in its Microfinance Sector
Industrial Credit and Investment Corporation of India Lombard General Insurance (ICICI) signed an agreement with the Small Industries Development Bank of India (SIDBI), a state-run bank that provides loans to support small and medium enterprises and several Indian microfinance institutions, pledging to provide non-life insurance products to the micro, small and medium enterprises supported by SIDBI.
UK-Based Financial Services Group Barclays Buys Niles Bank of Uganda and Plans to Enter Microfinance Sector in Uganda
Barclays, a UK-based financial services group, has announced intentions to buy Nile Bank of Uganda; signing of the deal is expected this week with approval from the Bank of Uganda to follow shortly. The addition of former Nile Bank branches will extend Barclays’ presence beyond Kampala and into rural areas. In an effort to further reach out to customers, the bank plans on broadening its retail product range and venturing into small and medium enterprise (SME) banking, the mainstay of Nile Bank during its 19-year existence.