MICROCAPITAL BRIEF: BNP Paribas China Enters Microfinance With $2.3m Loan to MicroCred Nanchong

BNP Paribas China, a branch of the France-based financial services provider BNP Paribas, has disbursed a loan in local currency equivalent to USD 2.3 million to Chinese microfinance institution (MFI) MicroCred Nanchong, a member of the France-based MicroCred. MicroCred Nanchong distributes loans starting at EUR 228 (USD 300) to approximately 7,000 borrowers in China.

MicroCred Nanchong reported a gross loan portfolio of USD 20.5 million, total assets of USD 21.4 million, return on assets of 5.41 percent and return on equity of 8.05 percent as of 2010. MicroCred, which is a member of the French PlaNet Finance Group, also has operations in Madagascar, Senegal, Cote D’Ivoire and Nigeria.

The 25 Chinese MFIs that report data to the US-based nonprofit Microfinance Information Exchange (MIX) held a gross loan portfolio of USD 14.1 billion disbursed to 2.4 million borrowers in 2010.

By Charlotte Newman, Research Associate

About MicroCred Group
MicroCred Group creates microfinance institutions (MFIs) and provides technical assistance to MFIs. MicroCred was created by French NGO PlaNet Finance and three investors: the International Finance Corporation (IFC), Société Générale and AXA Belgium. Those founding shareholders were joined by the French Development Agency (AFD in French) and the European Investment Bank (EIB) in 2007 and Developing World Markets (DWM) in 2008. MicroCred has operations in China, Madagascar, Senegal, Cote D’Ivoire and Nigeria. For 2010 MicroCred Group reported total assets of EUR 75.5 million (USD 100 million). MicroCred Nanchong of China, founded in 2006, held a gross loan portfolio of USD 20.5 million, total assets of USD 21.4 million, return on assets of 5.41 percent and return on equity of 8.05 percent as of 2010.

About BNP Paribas
Resulting from the 2000 merger between two French banks, Banque Nationale de Paris (BNP) and Paribas, BNP Paribas is a financial services provider headquartered in Paris. The bank has operations in 84 countries and focuses on retail banking, investment banking and wealth management. As of June 2011, it reported total assets of USD 2.7 trillion.

About PlaNet Finance
Founded in 1998 in Paris, France, PlaNet Finance is a nongovernmental organization (NGO) with the mission of alleviating poverty through microfinance development. PlaNet Finance is active in approximately 80 countries as of 2008 and is comprised of eight for-profit and nonprofit units: PlaNet Finance Advisory Services, which provides technical and advisory services; Planet Rating, a microfinance rating agency; PlaNIS responsAbility SAS, which specializes in advisory services and structuring and managing microfinance funds; MicroCred, an investor in microfinance; PlaNet Guarantee, which specializes in microinsurance; FinanCites, a social venture capital company; MicroFit, a microfinance software unit; and PlaNet University, a microfinance training provider.

Sources and Additional Resources:

BNP Paribas: Press Release: “BNP Paribas Grants its First Microfinance Loan in China,” http://www.bnpparibas.com/en/news/bnp-paribas-grants-its-first-microfinance-loan-china

MicroCapital.org story, December 1, 2008, “MICROCAPITAL STORY: MicroCred Receives Capital Increase from Developing World Markets and AXA Belgium,” https://www.microcapital.org/microcapital-story-microcred-receives-capital-increase-from-developing-world-markets-and-axa-belgium/

MicroCapital Universe Profile: MicroCred Group
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MicroCred

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

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

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