In addition to recent equity investment activity reported on December 6th, the Triodos Bank family of microfinance funds also lent over $6.7 million in seven deals. The Triodos-Doen Foundation, Triodos Fair Share Private Fund, and the Hivos-Triodos Fund have made loans to the Uganda Women’s Finance Trust ($545,600), Mongolian XacBank ($1m), Cambodian Thaneakea Phum Ltd. ($507,200), Mozambiquean Socremo ($627,000), Nicaraguan Fundación para el Apoyo a la Microempresa ($1.5m), and Bosnian and Herzegovinian MI-BOSPO ($942,080) and MIKROFIN (over $1.6m).
Continue reading “Dutch Triodos Family of Funds (Triodos-Doen, Triodos Private Fair Share, Hivos-Triodos) Makes Microfinance Investments Worth Over $6.7 Million in Loans to Seven Microcredit Institutions Worldwide”
Category: Deals
French Microcredit Investment Company Investor and Partner for Development Obtains 20.5% Stake in Micro-bank Uganda Women’s Trust
French investment company Investor and Partner for Development (I&P) obtained a 20.5% stake in microfinance institution (MFI) Uganda Women’s Finance Trust Limited (UFT). Established in 2002 by French entrepreneurs and incorporated in the country of
Continue reading “French Microcredit Investment Company Investor and Partner for Development Obtains 20.5% Stake in Micro-bank Uganda Women’s Trust”
Calvert Foundation Makes $3 Million Investment in Recently Launched MicroCredit Enterprises Fund
Sacramento-based MicroCredit Enterprises Fund (MCE Fund) received a $3 million loan from the DC area Calvert Foundation. The MicroCredit Enterprises Fund, which has just been launched this year, is aligned with MicroCredit Enterprises LLC which has an operating budget of $200,000 for 2006. MicroCredit Enterprises will provide loans to both non-profit and for-profit microfinance institutions (MFIs) throughout the world. The MCE Fund’s application to become a non-profit is currently pending approval.
Dutch MicroFinance Triodos Fair Share and Triodos-Doen Funds Invest $1 Million of Equity in Mongolian XacBank
Mongolian microfinance bank XacBank sold $1 million in shares to Dutch Triodos Fair Share and Triodos-Doen microfinance funds. Established in 2001, XacBank was created as a merger between the two largest non-bank financial institutions in Mongolia, Goviin Ekhlel and X.A.C., to provide microloans and small and medium size enterprise (SME) loans. XacBank, which by year end 2004 had over $38 million in total assets, has disbursed approximately 140,000 loans throughout Mongolia since its founding.
Applauding $900,000 Grant from Omidyar Network to MIX, the Information Standard in Microcredit
The Microfinance Information eXchange (MIX) received a $900,000 grant from the Omidyar Network. MicroCapital supports The MIX as the information standard on microfinance, and this is a perfect example of where donations should be made in microfinance.
Continue reading “Applauding $900,000 Grant from Omidyar Network to MIX, the Information Standard in Microcredit”
With a $2.2m Grant to Microfinance Network Opportunity International, Gates Foundation Dips Toe in Microcredit Investing—Is It Welcome?
Transnational microfinance network Opportunity International has received a $2.2 million grant from the Bill and Melinda Gates Foundation, which Opportunity will use to create a trans-African network of microfinance institutions (MFIs) and train communities in HIV/AIDS prevention.
Continue reading “With a $2.2m Grant to Microfinance Network Opportunity International, Gates Foundation Dips Toe in Microcredit Investing—Is It Welcome?”
Legendary Venture Capitalist Vinod Khosla and Grameen Foundation Make $500,000 Microfinance Equity Investment into Indian Microfinance Institution
U.S. non-profit Grameen Foundation USA (GFUSA) and Silicon Valley Venture Capitalist Vinod Khosla have each made a $250,000 equity investment into Indian microfinance institution (MFI) Credit and Savings for the Hardcore Poor Financial and Technical Services (CFTS).
Grameen Foundation USA and Nokia Collaborate for Microfinance Investment in Rural African Telecommunications
Last month, we reported on GrameenPhone’s new text messaging service for the poor in Bangladesh, questioning whether or not we would see more partnerships between micro-lenders and wireless providers. We received an answer today, as Nokia and the Grameen Foundation USA (GFUSA) have announced a collaboration to bring affordable telecommunications to rural villages in Africa.
U.S. Overseas Private Investment Corporation and Citigroup Making $30 Million Microfinance Investment into ProCredit Holding
The U.S. Overseas Private Investment Corporation (OPIC) and Citigroup recently provided $30 million in financing to German headquartered international development holding company ProCredit Holding AG. ProCredit Holding will consequently disburse the money to its 19 subsidiaries in Latin America, Eastern Europe, and
OPIC is a
Information regarding how much financing OPIC and Citigroup provided separately is unavailable.
Additional Resources
1) Main article discussed in entry, USINFO: “U.S. Agency to Provide $30 Million for Loans in 19 Countries.”
2) “ProCredit Holding: ProCredit Institutions.”
3) MicroCapital Blog: “German ProCredit Holding Makes $8 Million Microfinance Investment into ProCredit Ukraine.”
4) Overseas Private Investment Corporation (OPIC): “Expanding Horizons: Annual Report 2004.”
5) “About Citigroup.”
6) “2004 Annual Report.”
Fremont Bank Makes $500,000 Microfinance Investment in Opportunity International Loan Guarantee Fund
Opportunity International, a transnational microfinance wholesale network with headquarters in
Additional Resources
1) “Fremont Bank.”
2) “CoreTrac: Another California Community Bank Chooses CoreTrac.”
3) MicroCapital Blog: “Microfinance Networks (wholesale transnational): Defined and Listed.”
4) “Opportunity International: History.”
5) “2004 Annual Report Opportunity International.”
6) “Opportunity International Network.”
7) “Fremont Bank Takes Community Lending to the World.”
Inter-American Investment Corporation Makes $1 Million Microfinance Investment into Paraguayan Microfinance Institution Financiera Familiar
The Inter-American Investment Corporation (IIC), a super-national quasi-governmental institution based in the
MFI Financiera Familiar, established in 1967 to make small consumer loans, became the first for-profit MFI in
Additional Resources
1) Consultative Group to Assist the Poor (CGAP): “Microfinance Capital Markets Update” is the best source for monthly updates on debt and equity deals in microfinance.
2) Inter-American Investment Corporation (IIC): “Agreement Establishing the Inter-American Investment Corporation.”
3) IIC: “The IIC’s Mission.”
4) IIC: “Member Countries.”
5) IIC: “Inter-American Investment Corporation 2004 Annual Report.”
6) “Microfinance Enters the Marketplace.”
ResponsAbility Global Microfinance Fund Makes Microfinance Investments Totaling $4.7 Million into Multiple Microfinance Institutions
Recently, the ResponsAbility Global Microfinance Fund invested: $2 million into ProCredit Georgia, $1.5 million into Ecuadorian Banco Solidario, $500,000 into FINCA Georgia, $500,000 into Sinapi ABA Trust in Ghana, and $200,000 into Fondo de Desarrollo in Nicaragua. (Last week we also reported on another investment by ResponsAbility; please refer to the blog dated October 28, 2005 for more information on the fund).
ProCredit
Banco Solidario
FINCA
The Sinapi ABA Trust (SAT) in
Additional Resources
1) Consultative Group to Assist the Poor (CGAP): “Microfinance Capital Markets Update” is the best source for monthly updates on debt and equity deals in microfinance.
2) MicroCapital Blog: “FINCA Kyrgyzstan Receives $500,000 Microfinance Investment from Swiss ResponsAbility Fund.”
3) “ResponsAbility: Welcome to ResponsAbility.”
4) “ProCredit Holding: ProCredit Institutions.”
5) “ProCredit Bank History.”
6) “Balance Sheet (June 2005).”
7) MIX Market: “Banco Solidario: General Information.”
8) “Sinapi ABA Trust.”
9) MIX Market: “FDL: General Information.”
10) MIX Market: “FDL: Financial Data.”
11) “FINCA International: Where We Work.”
12) MicroCapital Blog: “Microfinance Networks (wholesale transnational): Defined and Listed.”
ABN AMRO Bank Makes $4.5 Million Microfinance Investment into Indian Microfinance Institution SKS
Dutch ABN AMRO Bank recently loaned Indian SKS Microfinance Private, Ltd., a microfinance institution (MFI), $4.5 million. With over å¥855 billion in total assets as of June 2005, ABN AMRO ranks as the 20th largest commercial bank in the world, measured by tier 1 capital (equity capital and disclosed reserves).
Established in 1997 as a “non-profit society”, SKS India began operations in microfinance services, then incorporated SKS Microfinance PrivateLtd (SKSML) in 2003 as a “for-profit spin-off” that took over the microfinance operations specializing in savings, loans, and insurance. As of June 2005, the organization had total assets just over $458 million and total loans close to $400 million for about 87,000 clients.
Additional Resources
1) Consultative Group to Assist the Poor (CGAP): “Microfinance Capital Markets Update” is the best source for monthly updates on debt and equity deals in microfinance.
2) “ABN AMRO: Profile.”
3) “SKS: Product and Services.”
4) “SKS Milestones.”
FINCA Kyrgyzstan Receives $500,000 Microfinance Investment from Swiss ResponsAbility Fund
FINCA Microcredit Company in Kyrgyzstan recently received a $500,000 loan from the Swiss based ResponsAbility Global Microfinance Fund.FINCA Microcredit Company, a microfinance institution (MFI), began its operations in 1995 as a member of the transnational microfinance network FINCA International, which started its first MFI in Bolivia in 1985.FINCA Kyrgyzstan provides loans to small businesses, individuals, and groups.The best information available indicates that there are about 11 Kyrgyz MFIs and FINCA Microcredit Company ranks as one of the top with a total loan portfolio of over $9.8 million for about 24,500 borrowers.
The ResponsAbility Global Microfinance Fund was founded in 2003 by Swiss financial institutions Credit Suisse, which is also the fund manager, Raiffeisen Banking Group, Baumann & Cie Banquiers, and the Andromeda Fund.PlaNet Finance, an international network of non-government organizations (NGOs), provides investment advisory services to the fund.ResponsAbility loans between $50,000 and $1.5 million to MFIs for a maximum of 5 years at a rate equal to “LIBOR plus full cost plus full risk.”The Fund’s total assets are reported as $11.45 million on MIX, the World Bank microfinance information clearinghouse, but are actually over $30 million according to individuals knowledgeable about the Fund.
Additional Resources
1) Consultative Group to Assist the Poor (CGAP): “Microfinance Capital Markets Update” is the best source for monthly updates on debt and equity deals in microfinance.
2) “FINCA International: History.”
3) MicroCapital Blog: “Microfinance Networks (wholesale transnational): Defined and Listed.”
4) “FINCA International: Where We Work”
5) MicroCapital Blog: “Big European Development Bank Makes $2 Million Microfinance Investment in Kyrgyzstan.”
6) “MicroFinance Network: FINCA Microcredit Company, Kyrgyzstan.”
7) “Founding Institutions: Credit Suisse Group.”
8) “Founding Institutions: Swiss Raiffeisen Group.”
9) “Founding Institutions: Baumann & Cie, Basel Private Bankers.”
10) “Founding Institutions: Andromeda Fund.”
11) MIX Market: “ResponsAbility Fund: Fund Description.”
12) MIX Market: “ResponsAbility Fund: Fund Instruments.”
12) PlaNet Finance: “ACTIVITIES/Financing.”
13) “Overview of the Microfinance Industry in the ECA Region in 2003.”
German ProCredit Holding Makes $8 Million Microfinance Investment into ProCredit Ukraine
Recently, German based international development holding company, ProCredit Holding, loaned ProCredit Bank Ukraine $8 million. ProCredit Holding, the leader of the ProCredit group—an international group of 19 microbanks in different countries, is an investment company founded in 1998. As the main shareholder of the ProCredit group, it invests in its subsidiaries. At the end of 2004, ProCredit Holding’s gross loan portfolio to its member banks amounted to over $950.9 million. ProCredit group member, ProCredit Bank
Additional Resources
1) Consultative Group to Assist the Poor (CGAP): “Microfinance Capital Markets Update” is the best source for monthly updates on debt and equity deals in microfinance.
2) “ProCredit Holding.”
3) “ProCredit Bank: History and Shareholders.”
4) “ProCredit Bank: About the Bank.”
5) “ProCredit Bank Ukraine: Annual Report 2004.”
6) “Publications- ProCredit Holding: Annual Report 2004.”
7) “ProCredit Holding: ProCredit Institutions.”
Google Foundation Makes $5 Million Microfinance Investment into Acumen Fund
The Google Foundation’s $5 million gift to the Acumen Fund goes to show that "making a philanthropic investment" in international small/sustainable business development is fashionable. Google would never do anything out of fashion. The Google Foundation is the “philanthropic arm of google.”
The Rockefeller Foundation, Cisco Systems Foundation, and individual philanthropists established the Acumen Fund in 2001. The Acumen Fund is an international non-profit venture fund that provides loans, equity investments, grants and “intellectual capital” to enterprises that support progress in health, housing, and water. At the end of 2004, the Acumen Fund had total disbursed loans of $2.964 million. The Fund aims to achieve approximately a negative -20% return on investment.Additional Resources
1) “Google.org Partnership.”
2) “Acumen Fund: Our Mission.”
3) “Acumen Fund: Investment Approach.”
4) “Acumen Fund: Investment Report August 2005.”
5) “Google”
$4.5 Million Microfinance Investment into Azerbaijan Micro Finance Bank Helps Establish Credit Line
The Azerbaijan Micro Finance Bank (AMFB) recently received a $3 million loan from the Black Sea Trade and Development Bank and a $1.5 million loan from the Triodos-Doen Foundation to be used as credit lines for small businesses. Established in 2002 by the European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), Black Sea Trade and Development Bank, and German LFS Financial Systems GmbH, AMFB provides financial services to micro and small business within the country. The bank’s typical microloans are between $400 and $10,000 for a maximum of 9 months. In June 2005, the Azerbaijan Microfinance Association reported that AMFB had a total loan portfolio of more than $11.4 million. It is the only one of the 45 commercial banks in Azerbaijan that focuses on microfinance services.
AMFB’s investor, the Black Sea Trade and Development Bank, is an “international financial institution” created in 1998 by the governments of
Another AMFB investor, The Triodos-Doen Foundation, founded by Dutch Triodos Bank and the Doen Foundation in 1994, provides loans ranging from $200,000 to $1 million for a maximum of five years to microfinance institutions (MFIs). The terms offered to MFIs are “Libor plus full cost plus full risk” and the “interest rate must be sufficient to cover potential devaluation against the Euro plus to cover costs of 8%.” The fund’s total assets stand at $34.822 million; $30.643 million of which has been allocated to microfinance investment.
Additional Resources
1) Consultative Group to Assist the Poor (CGAP): “Microfinance Capital Markets Update” is the best source for monthly updates on debt and equity deals in microfinance.
2) “Social and Economic Background of Azerbaijan.”
3) “Micro Finance Bank of Azerbaijan: Overview.”
4) “Micro Finance Bank of Azerbaijan: Mission.”
5) “Qualisteam: Black Sea Trade and Development Bank.”
6) Black Sea Trade and Development Bank (BSTDB) Press Release: “Black Sea Trade and Development Bank.”
7) MIX Market: “Triodos-Doen Foundation: Fund Instruments.”
8) MIX Market: “Triodos-Doen Foundation: Fund Description.”
9) “Black Sea Trade and Development Bank: A New Financial Player in the Balkans.”
10) “Microfinance in Azerbaijan.”
European Bank for Reconstruction and Development Makes $2 Million Investment in Kyrgyzstani Microfinance Institution Bai Tushum
Bai Tushum, a Kyrgyzstan microfinance institution (MFI), was recently provided with a $2 million loan from the European Bank for Reconstruction and Development (EBRD)—the “largest single investor in the region” between central Europe and central Asia. Member countries, the European Community, and the European Investment Bank own the EBRD, which has “subscribed capital totaling å¥20 billion.” The bank finances its loans by borrowing funds in international capital markets, and subsequently providing loans to public and private enterprises including banks, industries, and businesses. In 2004, the EBRD had invested over $1.37 billion in financial institutions supporting local enterprises.
In 2003, loan recipient Bai Tushum received an “A” rating for financial and economic performance standards designed by the World Bank’s microfinance unit (CGAP). The Microfinance Centre for Central and Eastern Europe and the
Additional Resources
1) Consultative Group to Assist the Poor (CGAP): “Microfinance Capital Markets Update” is the best source for monthly updates on debt and equity deals in microfinance.
2) “About the EBRD.”
3) “About the EBRD: Ownership and Funding.”
4) “USAID Success Stories Archive: USAID Supported Microfinance Insitution First in Kyrgyzstan to Receive ‘A’ Rating.”
5) MIX Market: “Bai Tushum: Financial Information.”
6) MIX Market: “Bai Tushum: General Information.”
7) “EBRD: Annual Report 2004.”
8) “MFC Spotlight 12: Overview of the Microfinance Industry in the ECA Region in 2003.”