The Japan International Cooperation Agency (JICA), a development institution of the Japanese government, has signed a subscription agreement with the First MicroFinance Bank Limited-Pakistan (FMFB-P) to invest PKR 240 million (USD 2.6 million) in the microbank to assist in FMFB-P’s expansion of microfinance operations in Pakistan. The size of the stake to be acquired by JICA has not been disclosed. The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, and the Aga Khan Development Network (AKDN), a Switzerland-based group of development agencies, will “also participate in the project as shareholders of FMFB-P” at undisclosed levels [1] [2].
As of 2010, FMFB-P reported to the US-based nonprofit Microfinance Information Exchange (MIX) a gross loan portfolio of USD 27.7 million with approximately 152,000 borrowers and total deposits of USD 62.4 million.
By Brendan Millan, Research Associate
About The Japan International Cooperation Agency (JICA): Established in 2002, JICA is a government institution that coordinates international development issues for Japan’s national government. As of 2008, JICA has an operational budget of USD 10.3 billion and has undertaken projects in approximately 150 developing countries.
About First MicroFinance Bank Limited Pakistan (FMFB-P): FMFB-P is a microfinance institution (MFI) based in Islamabad, Pakistan. It is partially owned by the Aga Khan Development Network, a group of private development institutions that work in sub-Saharan Africa, Central and South Asia, and the Middle East. It was founded in 2002 and offers loans, savings, insurance and fund transfer services. As of 2010, FMFB-P As of 2010, FMFB-P reported to the US-based nonprofit Microfinance Information Exchange (MIX) a gross loan portfolio of USD 27.7 million with approximately 152,000 borrowers and total deposits of USD 62.4 million.
About International Finance Corporation (IFC): A member of the World Bank Group, IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and total investment mobilization of USD 12.2 billion to 518 projects.
About Aga Khan Development Network (AKDN): The Aga Khan Development Network (AKDN) is a group of 11 development agencies that focus on issues relating to the environment, health, education, architecture, culture, microfinance, rural development, disaster reduction, the promotion of private-sector enterprise and the revitalization of historic cities. With a staff of 80,000, AKDN works in approximately 30 countries. The AKDN’s annual budget for non-profit development activities in 2010 was approximately USD 625 million.
Sources and Resources:
[1] Japan International Cooperation Agency (JICA): “Press Release: Signing of Private Sector Investment Finance (PSIF) Agreement with the First Microfinance Bank Limited- Pakistan.”, http://www.jica.go.jp/english/news/press/2011/120321.html
[2] International News Network: “JICA Signs Agreement with Pakistani Bank.”, http://www.onlinenews.com.pk/details.php?id=190522
MicroCapital.org Article, March 23, 2011, “International Finance Corporation (IFC) to Purchase 18% Stake in National Rural Support Programme Microfinance Bank (NRSP MF Bank) of Pakistan in Effort to Boost Farmer’s Access to Finance”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-to-purchase-18-percent-stake-in-national-rural-support-programme-microfinance-bank-nrsp-mf-bank-of-pakistan-in-effort-to-boost-farmers-a/
MicroCapital.org Article, February 2, 2010, “First Microfinance Bank Limited-Pakistan (FMFB-P) Renews Deal to Provide Microfinance Services through Pakistna Post Office (PPO) Sub-Offices”, https://www.microcapital.org/microcapital-brief-first-microfinance-bank-limited-pakistan-fmfb-p-renews-deal-to-provide-microfinance-services-through-pakistan-post-office-ppo-sub-offices/
MicroCapital.org Article, October 3, 2007, “First MicroFinance Bank and Pakistan Post Agree to Collaborate”, https://www.microcapital.org/microcapital-story-first-microfinancebank-and-pakistan-post-agree-to-collaborate/
MicroCapital Universe Profile: Japan International Cooperation Agency (JICA), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+Japan+International+Cooperation+Agency+%28JICA%29
MicroCapital Universe Profile: First MicroFinance Bank Limited Pakistan(FMFB-P), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=First+MicroFinance+Bank+Limited+Pakistan+%28FMFB-P%29
MicroCapital Universe Profile: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
MicroCapital Universe Profile: Aga Khan Development Network, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Aga+Khan+Development+Network
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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