by the MicroCapital Team -

MICROCAPITAL BRIEF: Small Industries Development Bank of India (SIDBI) Takes 11% Stake in Microfinance Institution Bandhan for $10.7m

Bandhan Financial Services Private Limited, a Indian microfinance institution reports that it has completed its first major equity raise with a INR 500,000,000 (USD 10.7 million) investment from the government-backed Small Industries Development Bank of India (SIDBI).

by Kenny Kline -

KNOW A MICROFINANCE FUND: Luxembourg Microbanking Intermediary Scheme Appui au Developpement Autonome (Luxmint ADA), Microcred Group, MicroCredit Enterprises, CRS CORDAID Microfinance Alliance Fund

The following funds are detailed in this brief:
Luxembourg Microbanking Intermediary Scheme Appui au Developpement Autonome (Luxmint ADA)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Luxembourg+Microbanking+Intermediary+Scheme+Appui+au+Developpement+Autonome+%28Luxmint+ADA%29

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

MicroCredit Enterprises
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MicroCredit+Enterprises

CRS CORDAID Microfinance Alliance Fund
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CRS+CORDAID+Microfinance+Alliance+Fund

by Chinq Yee Chong -

MICROCAPITAL.ORG STORY: Omidyar Network Establishes Entity In India Called Omidyar Network India Advisors With A View To Forming Closer Ties With India-Based Portfolio Organizations

It was recently reported on the Reuters news wire [1] that Omidyar
Network (Omidyar) [2], a social investment firm, has established a
new entity in India called Omidyar Network India Advisors which will be led by Mr Jayant Sinha. The Indian office will enable Omidyar to increase investments and partner more closely with India-based portfolio organizations. Mr Sinha expects Omidyar’s involvement in India to ‘catalyze economic opportunity and social impact’ in the country through ‘market-based approaches that have the potential to improve millions of lives’.

by Diya Chopra -

MICROCAPITAL.ORG STORY: Peruvian Commercial Bank, Banco de Credito, to Acquire Microfinance Group, Financiera Edyficar from CARE, International Finance Corporation (IFC), and MicroVest (MV)

Banco de Crédito del Perú (BCP) recently announced its deal with nongovernmental organization CARE, to purchase a 77.2% stake in the Peru-based microfinance company, Financiera Edyficar. BCP is a Peruvian publicly-traded commercial bank founded in 1889 and owned by Credicorp Ltd, a financial holding company in Peru. BCP offers services and products to businesses and individuals, as well as small and medium-sized enterprises [1]. In March 2008, BCP reported total assets of USD 17.3 billion, a debt-equity ratio of 1,422.10%, and a return on average assets of 2.13%. It has a BBB- credit rating from both Standard & Poor’s and Fitch Ratings. As of June 2009, BCP claimed 32% of loans and 36% of deposits in the Peruvian banking system. Approximately 97% of BCP is owned by Credicorp [2].

by Bharathi Ram -

MICROCAPITAL STORY: MFX Solutions Inc. (MFX) in Washington D.C., USA Launches Hedging Operations Dedicated to Microfinance Institutions (MFIs)

MFX Solutions Inc. (MFX), a new company based in Washington D.C. in the United States dedicated to providing microfinance currency risk solutions announced the launch of its hedging operations recently, according to a press release on the electronic news and information portal PR NewsWire. With the launch, MFX, in keeping with its mission to ‘make sure that existing flows of microfinance lending are not disrupted by currency devaluation’, will focus on making modern hedging instruments accessible to microfinance lenders in developing countries. As per information available on their website, MFX will focus on ‘high-risk markets in Africa and elsewhere where hedging can have a transformative effect’. Additionally, MFX will also create education programs in the form of easy-to-use web-based tools designed to help MFI managers analyze the risks they face under different economic scenarios. (PR Newswire is headquartered in New York, USA and is a subsidiary of the London based global business media company United Business MediaPlc).

by Laura Anderson -

MICROCAPITAL STORY: FinAccess 2009 Survey, Released by Financial Sector Deepening Kenya and Central Bank of Kenya, Shows African MFIs Fill Banking Void as New Laws Provide More Flexibility

The new FinAccess 2009 Survey, a report on credit access released by FinAccess in conjunction with Financial Sector Deepening Kenya (FSDK) and the Central Bank of Kenya, shows that the market share of microfinance institutions (MFIs) and Savings and Credit Cooperatives (Saccos), jumped from 7.5 percent three years ago to 20 percent by the end of last year.  To read a brochure summarizing the results of the survey, click here.

by the MicroCapital Team -

CGAP Microfinance Dealbook: May 2009 Transactions

The CGAP Microfinance Dealbook publicizes microfinance capital market transactions in an effort to bring greater transparency to the industry. This information is made freely available as a public service. Parties to microfinance transactions are encouraged to submit their deals to this effort. The following deals were collected for May 2009:

by Zoran Stanisljevic -

MICROFINANCE EVENT: Financial Research Associates, LLC to host Microfinance: The Investment Opportunity for Pensions, Endowments, Foundations & Social Investors Summit on July 13-14, 2009 in Washington, D.C

Microfinance: The Investment Opportunity for Pensions, Endowments, Foundations & Social Investors, July 13-14, 2009, at Washington, D.C., presented by Financial Research Associates, LLC. 

July 13-14, 2009, at Washington, D.C.

See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events

by Sally Levy -

MICROCAPITAL STORY: Jamii Bora Trust, Microfinance Institution Based in Kenya, Reaches $38m in Loans; Backers Acquire City Finance Bank

The Jamii Bora Trust reached a total loan portfolio to KES 3 billion (USD 38.3 million) this week. Over 329,000 loans have made by the microfinance institution (MFI) since being established in 1999. The Founder and managing trustee of Jamii Bora, Ingrid Munro said, “we expect the total loan disbursement to hit the Sh4 billion (USD 51 million) mark by the end of this year, if the current pace is maintained”. The MFI’s shareholders have also acquired a controlling interest in City Finance Bank, a public company. A trustee on the board of Jamii Bora, Kibuga Kariithi, declined to provide details, saying that “the transaction is confidential because it is still subject to regulatory approvals”.

by the MicroCapital Team -

CGAP Microfinance Dealbook: April 2009 Transactions

The CGAP Microfinance Dealbook publicizes microfinance capital market transactions in an effort to bring greater transparency to the industry. This information is made freely available as a public service. Parties to microfinance transactions are encouraged to submit their deals to this effort. The following deals were collected for April 2009: