MicroCred Holding, a microfinance investment company created by French nongovernmental organization (NGO) PlaNet Finance, and its subsidiary, MicroCred China, recently announced two capital increases totaling the equivalent of USD 31.1 million.
An investment totaling EUR 7.3 million (USD 10.2 million) in MicroCred Holding was placed by AXA Belgium, a Belgian asset management company, and funds managed by US-based asset management company Developing World Markets (DWM), including SNS Institutional Microfinance Fund, which was founded by DWM and SNS Asset Management of the Netherlands. Following this capital increase, the equity of MicroCred Holding totals EUR 29 million (USD 41 million), with the capital structure as follows: 28.4 percent owned by AXA Belgium, 26.4 percent by DWM, 15.7 percent by the European Investment Bank (EIB), 12.1 percent by Agence Francaise de Développement, 8.8 percent by Société Générale, 6.5 percent by the International Finance Corporation (IFC) and 2.1 percent by PlaNet Finance.
MicroCred Holding, Germany’s KfW Bankengruppe and IFC also invested an amount totaling HKD 175 million (USD 20.9 million) in MicroCred China to finance the development of MicroCred Nanchong and the launch of MicroCred Sichuan. In a separate transaction, AXA Belgium and funds managed by DWM, including SNS Institutional Microfinance Fund, purchased shares of MicroCred China from MicroCred Holding for a total price of USD 7.74 million. The capital of MicroCred China now stands at EUR 20.9 million (USD 29.6 million), with the capital structure as follows: 51 percent held by MicroCred Holding, 18 percent by KfW Bankengruppe, 15 percent by IFC, 8 percent by AXA Belgium and 8 percent by DWM.
MicroCred Group, which also has operations in Madagascar, Nigeria, Cote D’Ivoire and Senegal, recently reported that it completed 2010 with total assets of EUR 74.6 million (USD 103 million), a loan portfolio of EUR 43.3 million (USD 59.9 million), portfolio at risk (PAR) after 30 days of 0.8 percent and a deposit balance of EUR 12.7 million (USD 17.6 million).
By Jacqueline Foelster, Research Associate
About MicroCred Group: MicroCred Group creates and provides technical assistance to microfinance institutions (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) 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.
About SNS Asset Management: Based in the Netherlands and founded in 1997, SNS Asset Management is a unit of SNS REAAL, a retail banking and insurance provider serving individuals and businesses. SNS REAAL was formed following a merger between De Hollandse Koopmansbank and SNS Bank. SNS Asset Management and Developing World Markets, a US-based asset management company, founded SNS Institutional Microfinance Fund and SNS Institutional Microfinance Fund II, which aim to alleviate poverty by providing capital to microfinance institutions (MFIs) around the world. As of 2009, SNS Asset Management manages total assets of EUR 28 billion (USD 39 million).
About Developing World Markets (DWM): DWM is a US-based asset manager and investment bank dedicated to making investments to promote sustainable economic development. It provides both debt and equity investments to microfinance institutions (MFIs) and other socially motivated organizations. As of March 2011, it has USD 880 million in assets under management and has invested in approximately 140 MFIs worldwide.
About AXA Belgium: Formed from the merger of Royale Belge and AXA in 1999, AXA Belgium offers life, property and casualty insurance. It relies on approximately 6,000 employees to service approximately 3 million customers with approximately EUR 4.7 billion (USD 6.57 billion) in annual turnover.
Sources and resources:
[1] MicroCred Group: Press Release, “Capital Increase of MicroCred”, http://www.microcredgroup.com/documents/EN/PressRelease_MC_0111_EN_Holding.pdf
[2] MicroCred Group: Press Release, “Capital Increase of MicroCred China”, http://www.microcredgroup.com/documents/EN/PressRelease_MC_0111_EN_China.pdf
[3] Data provided to MicroCapital by MicroCred, March 2011
[4] MicroCred Group Press Release: “2010, a Year of Growth: Strengthening of operational efficiency, strong financial structure, growth of the net result”, http://www.microcredgroup.com/documents/EN/PressRelease_MC_0311_EN_Rlt.pdf
MicroCapital.org Article, January 5, 2010, “MEET THE BOSS: Isabelle Levard, Deputy CEO of MicroCred, a member of the PlaNet Finance Group”, https://www.microcapital.org/meet-the-boss-isabelle-levard-deputy-ceo-of-microcred-a-member-of-the-planet-finance-group/
MicroCapital Microfinance Universe Profile: MicroCred Group, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MicroCred
MicroCapital Microfinance Universe Profile: SNS Asset Management, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SNS+Asset+Management
MicroCapital Microfinance Universe Profile: Developing World Markets (DWM), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Developing+World+Markets+%28DWM%29
MicroCapital Microfinance Universe Profile: AXA Belgium,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=AXA+Belgium
MicroCapital Microfinance Universe Profile: Agence Francaise de Développement (AFD), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Agence+Francaise+de+Developpement+%28AFD%29
MicroCapital Microfinance Universe Profile: European Investment Bank (EIB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Investment+Bank+%28EIB%29
MicroCapital Microfinance Universe Profile: PlaNet Finance, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=PlaNet+Finance
MicroCapital Microfinance Universe Profile: KfW Bankengruppe (KfW), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=KfWBankengruppe+%28KfW+Bank+Group%29
MicroCapital Microfinance Universe Profile: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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