Symbiotics, a microfinance investment services company based in Switzerland, launched an electronic bond issuance platform on December 16th aimed at serving micro-, small & medium-sized enterprises and closed deals for Mutual Cartago de Ahorro y Prestamo (MUCAP), a savings and loan institution based in Costa Rica, and Sri Lankan microfinance institution (MFI) Lanka ORIX MicroCredit (LOMC), a joint venture started by the International Finance Corporation (IFC), the Sri Lankan government and the Orient Leasing Company.
The new platform from Symbiotics aims to improve the liquidity of impact investment vehicles and to provide standardized bond syndication programs settled by EuroClear, a company based in Belgium that provides cross-border and domestic bond settlement services. It also aims to provide more transparent pricing and the necessary infrastructure for secondary market transactions.
MUCAP, which is focused on housing finance, issued a bond of USD 10 million; while LOMC, a subsidiary of the LOLC Group, issued a bond of USD 11.5 million. Both debt packages were reportedly sold to eight unspecified institutional investors.
MUCAP and LOMC currently do not report financial data to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse. According to MUCAP’s financial statement in 2009, it has total assets of CRC 177 billion (approximately USD 348 million) and a total loan portfolio of CRC 101 billion (approximately USD 199 million). Lanka ORIX Leasing Company, the parent company of 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.
About Symbiotics:
Founded in 2005 in Switzerland, Symbiotics provides services to investors and practitioners of micro- and small enterprise development, including market information, consulting and investment brokerage.
About Lanka ORIX MicroCredit (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 launched in 1980 by the International Finance Corporation, the Sri Lankan government and the Orient Leasing Company. It started offering microfinance 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.
About Mutual Cartago de Ahorro y Prestamo (MUCAP):
Mutual Cartago de Ahorro y Prestamo (MUCAP) is a bank based in Costa Rica that focuses on housing finance. According to MUCAP’s financial statement in 2009, the bank has total assets of CRC 177 billion (approximately USD 348 million) and a total loan portfolio of CRC 101 billion (approximately USD 199 million). The institution currently does not report financial data to Microfinance Information Exchange, the microfinance information clearinghouse.
By Trevor Kwong, Research Assistant
Sources and Additional Resources:
[1] Source Article: Symbiotics: First Impact Investment Bond Issuance Platform for Institutional Investors, Symbiotics closes two pioneer deals with LOMC and MUCAP:
[2] MicroCapital Universe: Symbiotics:
[3] MicroCapital Universe: LOLC Micro Credit Ltd. (LOMC):
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LOLC+Micro+Credit+Ltd.+(LOMC)
[4] MicroCapital Universe: Mutual Cartago de Ahorro y Prestamo (MUCAP):
Browse the MicroCapital Universe and add your entry to the wiki at:
https://www.microcapital.org/microfinanceuniverse/
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