BlueOrchard Finance SA, a subsidiary of Switzerland-based commercial microfinance intermediary BlueOrchard, recently made loans totaling USD 3 million to microfinance institutions (MFIs) in Tajikistan and Sri Lanka.
The Dexia Microcredit Fund (DMCF), a microfinance investment vehicle (MIV) managed by BlueOrchard Finance, loaned USD 1 million to AccessBank Tajikistan, a microfinance institution that provides financial services to micro- and small enterprises. AccessBank Tajikistan, which commenced operations in 2010, has not so far reported to the US nonprofit Microfinance Information Exchange (MIX).
DMCF further loaned USD 2 million to LOLC Micro Credit Limited (LOMC), the microfinance arm of Lanka ORIX Leasing Company (LOLC) which is a Sri Lankan financial service provider established in 1980. LOLC has total assets of LKR 46.3 billion (approximately USD 674 million), a total loan portfolio of LKR 17.6 billion (approximately USD 159 million) and a return on equity of 19 percent for the year ending March 31, 2010. LOLC does not report to MIX.
By Medha Ravi, Research Associate
About BlueOrchard:
BlueOrchard is a Swiss commercial microfinance intermediary that provides loans to microfinance institutions through its subsidiary BlueOrchard Finance and invests in the equity of microfinance institutions and microfinance funds through its subsidiary BlueOrchard Investments. It had approximately USD 980 million under management as of June 2009.
About Dexia Micro-Credit Fund (DMCF):
The Dexia Micro-Credit Fund (DMCF) invests in debt instruments issued by microfinance institutions (MFIs). DMCF is managed by BlueOrchard Finance SA. It is also certified by LuxFLAG, an independent organization that certifies that microfinance vehicles actually invest in the microfinance sector. As of 2009, DMCF has USD 531 million in assets.
About AcessBank Tajikistan:
AccessBank Tajikistan is a closed joint stock company with a full banking license. Founded in 2010, the bank offers financial services to micro- and small enterprises and aims to open 17 branches and have disbursed 37,000 loans by the end of its first five years of operations. The bank’s shareholders include the International Finance Corporation (IFC), the lending arm of the World Bank; the European Bank for Reconstruction and Development (EBRD), a financial institution owned by 61 countries and two intergovernmental institutions; and KfW Bankengruppe, a German development Bank.
About LOLC Micro Credit Limited (LOMC):
LOLC Micro Credit Limited (LOMC) provides individual and group loans for microentrepreneurs in Sri Lanka’s agricultural districts. Founded in 2009, LOMC is the microfinance arm of Lanka ORIX Leasing Company (LOLC), a Sri Lankan financial services provider started in 1980 by the International Finance Corporation, the Sri Lankan government and the Orient Leasing Company of Japan. It started offering microfinancial services in 2003. LOLC has total assets of LKR 46.3 billion (approximately USD 674 million), a total loan portfolio of LKR 17.6 billion (approximately USD 159 million) and a return on equity of 19 percent for the year ending March 31, 2010.
Sources and Resources:
Data submitted by BlueOrchard to MicroCapital April 2011
MicroCapital.org story, September 15, 2010, “BlueOrchard Finance Loans $1.77m to Peruvian Microfinance Institution (MFI) EDPYME Alternativa”, https://www.microcapital.org/microcapital-brief-blueorchard-finance-loans-1-77m-to-peruvian-microfinance-institution-mfi-edpyme-alternativa-2/
MicroCapital.org story, January 7, 2011, “MICROCAPITAL BRIEF: responsAbility Social Investments of Switzerland Loans $11.3m to PRASAC, Thaneakea Phum Cambodia Limited (TPC) of Cambodia, LOLC Micro Credit Limited (LOMC) of Sri Lanka”, https://www.microcapital.org/microcapital-brief-responsability-social-investments-of-switzerland-loans-11-3m-to-prasac-thaneakea-phum-cambodia-limited-tpc-of-cambodia-lolc-micro-credit-limited-lomc-of-sri-lanka/
MicroCapital.org story, March 30, 2010, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Invests $2m in AccessBank Tajikistan to Help Expand Microfinance Programs”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-invests-2m-in-accessbank-tajikistan-to-help-expand-microfinance-programs/
MicroCapital’s Microfinance Universe profile: BlueOrchard, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=BlueOrchard
MicroCapital’s Microfinance Universe profile: Dexia Micro-Credit Fund (DMCF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Dexia+Microcredit+Fund+%28DMCF%29
MicroCapital’s Microfinance Universe profile: AccessBank Tajikistan, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=AccessBank+Tajikistan
MicroCapital’s Microfinance Universe profile: LOLC Micro Credit Ltd. (LOMC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LOLC+Micro+Credit+Ltd.+%28LOMC%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/tiki-index.php
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