The International Finance Corporation (IFC), the investment arm of the World Bank, has announced that it will make an equity investment of XOF 574.6 million, the equivalent of over USD 1.2 million, in MicroCred Senegal, a microfinance institution (MFI) located in Senegal that was founded by the MicroCred Group, an investment company based in France that is part of the PlaNet Finance Group.Furthermore, IFC’s advisory services will provide a grant to the MFI of an unspecified amount to aid in expansion and capacity building. Additionally, SONAM, an insurance company located in Senegal, will invest XOF 400 million, the equivalent of over USD 850,000, and the Bank of Africa, a multinational bank, will invest XOF 100 million, the equivalent of over USD 200,000.
By Christopher Maggio, Research Assistant
About:
International Finance Corporation (IFC)
Description:
A member of the World Bank Group, the International Finance Corporation (IFC) uses loan and debt securities, equity investments and guarantees as instruments of poverty alleviation. It “invests in companies and financial institutions in emerging markets” as well as providing technical assistance. The IFC has 182 member countries that “collectively determine its policies, and approve investments.” In fiscal year 2009, its new investments totaled USD 14.5 billion.
About:
MicroCred Senegal
Description:
MicroCred Senegal is a microfinance institution (MFI) based in Dakar, Senegal. It was founded in 2007 by the MicroCred Group, an investment company founded by PlaNet Finance that has created a network of commercial MFIs. It offers loans and voluntary savings. It is a member of the PlaNet Finance Group.
Microfinance Information Exchange (MIX) Profile:
http://www.mixmarket.org/mfi/microcred-sen
Organization’s Website:
http://www.microcred.sn/
Just the Facts:
– Country of Incorporation: Senegal
– Year Founded: 2007
– Total Assets: USD 3.5 million (as of 31/Dec/08)
– Fund Assets Allocated to MFI Investment (as of day/month/year): USD 9.5 million (as of 31/Dec/09)
– Number of MFI Clients: 12,000 (as of 31/Dec/09)
– Return on Assets: -123% (as of 31/Dec/08)
– Return on Equity: -282% (as of 31/Dec/08)
– Participant(s)/Backer(s)/Investor(s): MicroCred, PlaNet Finance, International Finance Corporation (IFC), Societe Generale, AXA Belgium, French Development Agency (AFD), European Investment Bank (EIB), Developing World Markets (DWM)
– CEO (MicroCred): Bernard Tissot
Contact Information
Arafat N°177 Avenue Cardinal H. Thiandoum – Grand Yoff
Dakar
BP 13710
Senegal
Phone: +221 33 869 84 20
Fax: +221 33 867 56 07
Email: contactsenegal@microcredgroup.com
About:
MicroCred Group
Description:
MicroCred Group creates microfinance institutions (MFIs) and provides technical assistance to those institutions. MicroCred was created by PlaNet Finance and three partner investors: the International Finance Corporation (IFC), Société Générale and AXA Belgium. Those founding shareholders were joined by the French Development Agency (AFD) and the European Investment Bank (EIB) in 2007 and Developing World Markets (DWM) in 2008. It is a member of the PlaNet Finance Group.
Microfinance Information Exchange (MIX) Profile:
http://www.mixmarket.org/funders/microcred
Organization’s Website
http://www.microcredgroup.com/
Just the Facts:
– Country of Incorporation: France
– Year Founded: 2005
– Legal Status:
– Fund Assets (as of day/month/year): EUR 26.4 million (USD 37.7 million as of 31/December/08)
– Fund Assets Allocated to MFI Investment (as of day/month/year): EUR 10.9 million (USD 14.9 million as of 31/December/08)
– Number of MFI Investments (as of day/month/year): 4 (as of 31/December/08)
– Area of Operation: Global
– Participant(s)/Backer(s)/Investor(s): PlaNet Finance, International Finance Corporation (IFC), Societe Generale, AXA Belgium, French Development Agency (AFD), European Investment Bank (EIB), Developing World Markets (DWM)
– Instruments: Loans and Debt Securities, Technical Assisance
– Fund Currency: EUR
Contact Information
Arnaud Ventura
President of the Management Board
Chief Executive Officer
aventura@microcred.org
Isabelle Levard
Member of the Management Board
Deputy Chief Executive Officer
ilevard@microcred.org
Additional Resources:
IFC press release entitled ‘IFC Invests in MicroCred Sénégal to Increase Loans to Senegalese Small Businesses’: http://www.ifc.org/ifcext/media.nsf/content/SelectedPressRelease?OpenDocument&UNID=6F759E49BF96E471852576CE005A630D
MicroCapital’s Microfinance Universe profile: MicroCred Senegal
MicroCapital’s Microfinance Universe profile: IFC
MicroCapital’s Microfinance Universe profile: MicroCred Group
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