Advans SA, a Luxembourg-based organization that mobilizes funds for microfinance institutions (MFIs), has raised EUR 23 million (USD 33 million) in its second round of fundraising.The additional capital, committed by existing shareholders, will be used to fund microfinance institutions in developing countries, with a particular focus on Africa. The capital infusion brings Advans SA’s total committed capital to EUR 40.1 million (USD 58 million). The shareholders are: Horus Development Finance; Agence Francaise de Developpement (AFD); European Investment Bank (EIB); International Finance Corporation (IFC); CDC Group, the UK Government’s development finance institution (CDC); KfW Entwicklungsbank (KfW), a state-owned development bank based in Germany; and Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden N.V. (FMO), a Dutch development bank. The largest shareholders, FMO and CDC, have each committed USD 10.8 million.
“We are delighted that Advans SA’s existing shareholders have committed to reinvest such a substantial amount in the Company, especially during this turbulent period for the financial sector. It is a reflection of the importance of Advans’ work in the development finance sector and its success in meeting development and investment objectives,” said Cyrille Arnould, Chairman of the Board of Directors of Advans SA.
By Jay Kumar, Research Assistant
About Advans SA
Established in 2005, Advans SA is a microfinance investment vehicle which mobilizes funds for microfinance institutions (MFIs). Its shareholders are: Horus Development Finance; Agence Francaise de Developpement (AFD); European Investment Bank (EIB); International Finance Corporation (IFC); KfW Entwicklungsbank (KfW), a state-owned development bank based in Germany; AND Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden N.V. (FMO), a Dutch development bank. Advans SA aims to create new microfinance institutions (MFIs), which are retail micro-lenders, by investing as a lead shareholder. Advans SA aims to create approximately 10 new MFIs and invest in existing MFIs principally in Africa and Asia. Advans’ current network of MFIs consists of: Advans Banque Congo; Amret, Cambodia; Advans Ghana; and Advans Cameroun.
About European Investment Bank (EIB):
Established in 1958 under the Treaty of Rome, EIB is the European Union’s long-term lending institution. Its owners are the member states of the European Union, who subscribe to the Bank’s capital – approximately EUR 164 billion (USD 236 billion). The Board of Governors and the Board of Directors are the Bank’s independent decision-making bodies.
About Agence Francaise de Developpement (AFD):
Established in 1941, AFD is a bi-lateral development finance institution working on behalf of the French Government. Its public mandate is to finance development according to France’s Overseas Development Assistance policies. In 2007, AFD committed over €3.5 billion to more than 60 developing countries.
About International Finance Corporation (IFC):
IFC is a member of the World Bank Group, created to support financial private sector development, mobilize private capital, and provide advisory and risk mitigation services to businesses and services. The IFC has 182 member countries that “collectively determine its policies, and approve investments.” In 2009, IFC made new investments in developing countries that reached a total of USD 14.5 billion.
About KfW Entwicklungsbank (KfW):
KfW is a German, state-owned development bank. In 2008, KfW committed EUR 3.7 billion (USD 5.3 billion) to development projects and programmes in Asia, Europe and the Caucasus, Sub-Saharan Africa, Latin America, North Africa and the Middle East
About Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden N.V. (FMO)
FMO is a Dutch development bank. It is a public-private bank. Both the Dutch State and large Dutch banks are major shareholders. Other smaller shareholders include employers’ associations, trade unions and individual investors. Its investment portfolio is worth EUR 4.2 billion (USD 6 billion).
Additional Resources
1.) http://www.advansgroup.com/fileadmin/Advans/Presse_release/1001_EN_Advan…
2.) FMO MicroCapital Wiki: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Nederlandse+Financierings-Maatschappijvoor+Ontwikkelingslanden+N.V.+(FMO)
3.) KfW MicroCapital Wiki: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=KfW+Entwicklungsbank+(KfW)
4.) IFC MicroCapital Wiki: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+(IFC)
5.) AFD MicroCapital Wiki: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Agence+Francaise+de+Developpement+(AFD)
6.) EIB MicroCapital Wiki: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Investment+Bank+(EIB)
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