BlueOrchard Finance SA, a commercial microfinance intermediary operating as a subsidiary of Geneva-based BlueOrchard, recently announced its intention to triple its microfinance investments in Asia.
This move will rebalance the composition of BlueOrchard Finance’s global portfolio so that its Asian investments account for a full third of the firm’s microfinance investments [1]. BlueOrchard Finance opened its first Asian office last week in Phnom Penh, and is “considering” opening a microfinance fund based in, and focusing on, Asia. BlueOrchard Finance has already invested USD 115 million in South and Southeast Asia, including USD 36 million in Cambodia alone [1].
In June 2009, BlueOrchard reported total assets of USD 980 million, of which USD 714 million had been invested in 35 countries [2]. Last month, BlueOrchard closed its Private Equity Fund after receiving USD 195 million in investor commitments [3]. Recently, BlueOrchard increased its investments in African and Latin American markets through a USD 8 million loan to Kenyan microfinance bank Equity Bank [4], as well as through a local-currency loan worth USD 17.5 million to Peruvian microfinance institution (MFI) Banco de la Microempresa (Mibanco). The latter investment was part of a larger, local-currency, syndicated loan package worth USD 45 million to Mibanco [5].
by Lindsey Shaughnessy, Research Associate
About BlueOrchard: BlueOrchard is a Switzerland-based, commercial microfinance intermediary that provides loans to microfinance institutions (MFIs) through its subsidiary BlueOrchard Finance S.A. and invests in the equity of MFIs and microfinance network funds through its subsidiary BlueOrchard Investments S.A. BlueOrchard reported approximately USD 980 million under management as of June 2009.
About Equity Bank: Equity Bank, founded in 1984, is a microfinance bank based in Nairobi, Kenya. It provides loans, savings and fund transfer services, and it is funded through savings deposits and shareholder capital. It is involved in microfinance operations not only in Kenya, but also in Southern Sudan and Uganda through its subsidiary Equity Bank Uganda. As reported to the Microfinance Information Exchange (MIX) in 2009, Equity Bank has USD 1.27 billion in total assets, a gross loan portfolio of USD 818 million and 716,000 active borrowers.
About Mibanco: Mibanco (Banco de la Microempresa), created in 1998, is a private Peruvian bank that aims to assist the development of micro- and small enterprises (MSEs). Its strategy is to target markets where demand for micro-credit is highest and supply weakest, mainly focusing on the Lima and Callao area. Mibanco offers both lending and savings products, and employs both individual and solidarity group lending methodologies. Loans are offered for working capital and fixed asset purchases. Loan sizes range from the equivalent of USD 100 to USD 100,000, with loan terms of 3 to 60 months, with interest rates from 25 percent up to 50 percent per year.
Sources and Additional Resources:
[1] Bloomberg, “BlueOrchard Follows Grameen, SKS to Boost Microfinance Investments in Asia” by Netty Ismail, August 13, 2010. http://www.bloomberg.com/news/2010-08-13/blueorchard-follows-grameen-sks-to-boost-microfinance-investments-in-asia.html
[2] BlueOrchard, “Factsheet 2009”, June 30, 2009. http://www.blueorchard.com/jahia/webdav/site/blueorchard/shared/Publications%20and%20Resources/BlueOrchard%20Factsheets/0907_Fact%20sheet%202009_EN.pdf
[3] MICROCAPITAL BRIEF: “BlueOrchard Closes Its Private Equity Fund With $195m in Total Commitments from Institutional and Individual Microfinance Investors”, July 26, 2010. https://www.microcapital.org/microcapital-brief-blueorchard-closes-its-private-equity-fund-with-195m-in-total-commitments-from-institutional-and-individual-microfinance-investors/
[4] MICROCAPITAL BRIEF: “Kenyan Equity Bank Receives $8m in Loans from Microfinance Intermediary BlueOrchard Finance”, August 14, 2010. https://www.microcapital.org/kenyan-equity-bank-receives-8m-in-loans-from-microfinance-intermediary-blueorchard-finance/
[5] MICROCAPITAL BRIEF: “Peruvian Microfinance Institution (MFI) Mibanco Receives $45m Syndicated Loan from Inter-American Development Bank (IDB), BlueOrchard, Oikocredit, the Calvert Foundation and Societe de Promotion et de Participation pour la Cooperation Economique (PROPARCO)”, August 13, 2010. https://www.microcapital.org/microcapital-brief-peruvian-microfinance-institution-mfi-mibanco-receives-45m-syndicated-loan-from-inter-american-development-bank-idb-blueorchard-oikocredit-the-calvert-foundation-and-societ/
MicroCapital’s Microfinance Universe profile: BlueOrchard SA
Microcapital’s Microfinance Universe profile: Equity Bank
MicroCapital’s Microfinance Universe profile: Banco de la Microempresa (Mibanco)
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