MICROCAPITAL BRIEF: Advans Incorporates Advans Pakistan Microfinance Bank, La Fayette Microfinance Bank of Nigeria

Advans SA, a microfinance investment vehicle that mobilizes funds for microfinance institutions (MFIs), recently announced the incorporation of the Advans Pakistan Microfinance Bank in the Republic of Pakistan and the La Fayette Microfinance Bank in Nigeria. The two banks are Advans’ sixth and seventh greenfield institutions, respectively.

Advans Pakistan Microfinance Bank was incorporated in April 2012 by Advans SA, which holds 70 percent of the bank’s shares, and Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO), a Dutch public-private development bank holds the remainder of the shares. With initial share capital of PKR 800 million (USD 8.5 million), Advans Pakistan Microfinance Bank plans to offer loans to micro-, small and medium-sized enterprises (MSMEs) and savings accounts for MSMEs and households. The first branch is planned to be opened in the Pakistani city of Karachi in November.

La Fayette Microfinance Bank is expected to be incorporated in June 2012 and begin operations in December of this year. It has received approval-in-principal from the Central Bank of Nigeria (CBN), Nigeria’s central banking authority, to offer microfinance services in the Nigerian state of Oyo. Advans SA invested equity of NGN 501 million (USD 3.1 million) in return for 50.1 percent of the bank’s shares. Other shareholders of the bank are the International Finance Corporation (IFC), a member of the World Bank Group that aims to support private sector development, and KfW Entwicklungsbank, a German development bank, which each invested equity of NGN 174.5 million (USD 1.1 million) for 17.5-percent shares. FMO also invested NGN 150 million (USD 935,000) for a 15-percent share. La Fayette Microfinance Bank will offer loans and other unspecified financial services.

Advans’ MFIs in Cameroon, Ghana, Tanzania, Democratic Republic of the Congo and Cambodia serve approximately 245,000 loan clients with 61 branches and an outstanding loan portfolio of approximately EUR 55 million (USD 75.7 million) as of 2010.

By Charlotte Newman, Research Associate

About Advans SA
Advans SA SICAR (Advans SA) is a venture capital company that is registered in Luxembourg and managed by Horus Development Finance of France. The mission of Advans is to broaden access to financial services for micro-, small and medium-sized enterprises (MSMEs) in emerging economies. Its modus operandi is to invest as lead shareholder in the creation of financial institutions. In addition to equity and debt funding to microfinance institutions (MFIs), Advans SA provides technical assistance to MSMEs to promote sustainable and profitable operations. Advans’ MFIs in Cameroon, Ghana, Tanzania, Democratic Republic of the Congo and Cambodia serve approximately 245,000 loan clients with 61 branches and an outstanding loan portfolio of approximately EUR 55 million (USD 75.7 million) as of 2010. Advans SA plans to establish 6 or 7 new MFIs in Africa, Asia and the Middle East by 2013. Among these is La Fayette Microfinance Bank, which plans to open its doors in late 2012, Advans Cote d’Ivoire which began operating in early 2012, and Advans Pakistan which was incorporated in early 2012. LuxFLAG, an organization that certifies that microfinance vehicles actually invest in the microfinance sector, most recently certified Advans in April 2011.

About Advans Pakistan
Advans Pakistan is a microfinance institution (MFI) in the Republic of Pakistan as a member of the Advans SA group of financial institutions, which is registered in Luxembourg. Advans Pakistan was incorporated in April 2012 and expects to open its first branch in late 2012. The bank offers credit and savings services to micro-, small and medium-sized enterprises (MSMEs). Financial information on Advans Pakistan is not available.

Sources and Additional Resources:

Press Release sent from Advans SA to MicroCapital.org: “Advans SA SICAR Announces the Creation of Advans Pakistan Microfinance Bank in Karachi and La Fayette Microfinance Bank in Ibadan, Nigeria.”

MicroCapital.org story, April 8, 2012, “MICROCAPITAL BRIEF: Advans SA Opens Microfinance Institution Advans Cote d’Ivoire, International Finance Corporation (IFC) Invests $1m in Equity,” https://www.microcapital.org/microcapital-brief-advans-sa-opens-microfinance-institution-advans-cote-divoire-international-finance-corporation-ifc-invests-1m-in-equity/

MicroCapital.org story, February 4, 2012, “MICROCAPITAL BRIEF: Advans, International Finance Corporation (IFC), KfW Bankengruppe, FMO to Start La Fayette Microfinance Bank in Nigeria with $6.2m in Equity Investments,” https://www.microcapital.org/microcapital-brief-advans-international-finance-corporation-ifc-kfw-bankengruppe-fmo-to-start-la-fayette-microfinance-bank-in-nigeria-with-6-2m-in-equity-investments/

MicroCapital Universe Profile: Advans SA https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Advans+SA

MicroCapital Universe Profile: Advans Pakistan https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Advans+Pakistan

MicroCapital Universe Profile: Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Nederlandse+Financierings-Maatschappijvoor+Ontwikkelingslanden+N.V.+%28Netherlands+Development+Finance+Company%2C+FMO%29

MicroCapital Universe Profile: International Finance Corporation
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

MicroCapital Universe Profile: KfW Enwicklungsbank
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=KfW+Entwicklungsbank+%28KfW%29

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