Equitas Micro Finance India announced it has completed a microloan backed rated securitization worth USD 3.0m. According to a press release in the Economic Times, the pass-through certificates are rated by CRISIL and backed by microloan receivables originated by Equitas. CRISIL is an Indian rating company and a division of Standard and Poor’s. The Series A1 certificates are rated AA(so) and the Series A2 certificates are rated BBB(so). IFMR, the Institute for Financial Management and Research in India, structured and arranged the transaction. The COO of Equitas, S. Baskar, commented “traditionally MFIs in India have had to access only banks for debt raising, placing limitations. This transaction would open a new window to the industry to raise debt from those banks which do not generally participating (sic) in funding to MFIs”.
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NEWS WIRE: Over 80 percent of Investors have not Reduced their Microfinance Investment Portfolio Due to the Global Recession
Source: Microfinance Insights .
MICROCAPITAL STORY: Microfinance Institution Grama Vidiyal Plans to Raise USD 9.7 Million in Private Equity
Grama Vidiyal Microfinance Ltd (GVM) is in talks with private equity firms to raise INR 500 million (USD 9.7 million) to fund a proposed expansion that includes establishing branches in neighboring states as well as recruiting 700 more employees. We currently do not have any information as to which private equity funds have been approached for funding. Founded in 1993 and based in Tamil Nadu, India, Grama Vidiyal Microfinance Ltd is a non-governmental microfinance institution. As of March 2008, its total gross loan portfolio is USD 28.7 million, total assets USD 30.8 million, and total equity USD 4.8 million.
MICROCAPITAL STORY: Omidyar Network Grants $4.5m to Opportunity International to Scale Technology-Based Microfinance Services in Africa
Opportunity International announced it received a 4.5 million USD grant from Omidyar Network, a philanthropic investment firm. According to PR Newswire, the grant will be used to create and implement new electronic and mobile banking technologies that will reduce transaction costs and make microfinance services available to more people in Sub-Saharan Africa. Specifically, it will launch an “electronic wallet” strategy in Ghana, Kenya, Malawi, Mozambique, Rwanda, South Africa, Tanzania, and Uganda – countries where Opportunity has significant operations already, including banks and financial institutions. The strategy aims to develop the optimum mix of electronic banking technologies needed in each of these countries.
MICROCAPITAL PAPER WRAP-UP: The State of the Microcredit Summit Campaign Report 2009, by Sam Daley-Harris
The State of the Microcredit Summit Campaign Report 2009 was written by Sam Daley-Harris and is a 70 page report that discusses the human face of global poverty, reviews microfinance breakthroughs in helping slum dwellers move out of the slums and highlights innovations that have brought renewable energy to poor communities. The report is a summary of the achievements and innovations of the Microcredit Summit Campaign for the year 2008 as wells as notable achievements in the microfinance community in general and consists of contributions from a variety of experts in the microfinance industry. The original report is available here.
MICROFINANCE EVENT: The Microcredit Summit Campaign Hosts a Series of Events in the United States with Muhammad Yunus and Ingrid Munro
A CONVERSATION WITH PROFESSOR MUHAMMAD YUNUS
JANUARY 26, 2009, 383 MADISON AVENUE, NEW YORK CITY
J.P. Morgan will host a Microcredit Summit Campaign event with Muhammad Yunus, Nobel Peace Prize Laureate and founder of the Grameen Bank in Bangladesh, January 26 in New York City. Also in attendance will be Ingrid Munro, Founder of Kenyan microfinance organization Jamii Bora. The invitation for the event says that “Sam Daley-Harris, Founder and Director of the Microcredit Summit Campaign, and Professor Yunus will make an exciting announcement about the Campaign’s goals.” The announcement will pertain to the Campaign’s original goal of reaching 100 million of the world’s poorest families with credit. It will be accompanied by a conversation on the future of microfinance. Also on January 26, the State of the Microcredit Summit Campaign Report 2009 will be released, and will be available on the Campaign website.
MICROCAPITAL STORY: India’s IDBI Bank Ltd. Increases Credit to MFIs While Orissa State Government Calls for Banks and MFIs to Meet Lending Targets
India’s state-owned Industrial Development Bank of India Limited (IDBI) has announced measures to increase the amount of credit to the microfinance industry. According to the Trading Market, the IDBI has reduced the interest rates for microenterprises, increased working capital limits, reduced the margin payment and provided softer loan terms for micro, small and medium sized enterprises (MSMEs). Loans for microenterprises have been reduced by 100 basis points from interest rates on November 30, 2008. It is also planning to grant need-based “ad hoc” working capital demand loans to MSMEs repayable in one year, as well as providing “adequate” increases in working capital limits to MSMEs.
MICROCAPITAL STORY: BRAC of Bangladesh Launches $62m East Africa Microfinance Fund
Bangladesh Rural Advancement Committee (BRAC), an International Development Organization founded in Bangladesh announced the launch of the BRAC Africa Loan Fund to provide microfinance loans to poor borrowers in Tanzania, Uganda and Southern Sudan. In a press release found on PRNewswire, BRAC announced that it has raised USD 62.6 million of capital towards the loan fund. The release stated that the Africa Loan Fund would provide long-term, local currency funding that would enable BRAC to scale up its microfinance operations to reach over 700,000 borrowers through over 200 branches across the three East African countries.
MICROCAPITAL STORY: Nirantara Community Services, Arohan, and Sanghamithra Rural Financial Services Win National Awards at the PlaNet Finance India’s 2008 Microfinance Process Excellence Awards
The nineteen awardees of the Royal Bank of Scotland and PlaNet Finance India’s Microfinance Process Excellence Awards were announced recently at a conference in Delhi. They were the third annual awards and the winners for the awards were selected from a pool of 67 nominees, which were shortlisted after receiving applications from the initial pool of applicants. The award winners were announced at the Microfinance India Summit 2008, held Nov. 11th to 13th in New Delhi. National winners for the three categories of awards were Nirantara Community Services, Arohan, and Sanghamithra.
MICROCAPITAL EVENT: Microfinance In Africa: What Works?
NOVEMBER 20, 2008, 12:00pm to 4:00pm
MICROCAPITAL STORY: SKS Microfinance Raises $75.4m in Equity Capital in Transaction Led by Sandstone Capital
SKS Microfinance Pvt. Ltd. has announced the closing of a fourth round of equity financing in which it raised Rs 366 crore, approximately USD 75.4 million. The transaction was led by Sandstone Capital, a U.S. hedge fund based in Boston, MA. Also participating in the transaction were existing investors Kismet Capital and SVB India Capital Partners, an affiliate of Silicon Valley Bank. Edelweiss Capital was the investment banker to the issue.
MICROFINANCE EVENT: Financial Research Associates Hosts the 3rd Annual Microfinance East
3RD ANNUAL MICROFINANCE EAST: THE INVESTMENT OPPORTUNITY
JANUARY 29-30, 2009, THE HARMONIE CLUB, NEW YORK, NY
Financial Research Associates (FRA), an organization that provides information and networking opportunities through conferences and seminars, will host the 3rd Annual Microfinance East Conference in January.
NEWS WIRE: India: MFIs Face Challenge of Global Meltdown
Source: The Economic Times.
NEWS WIRE: India: Lok Capital, Michael and Susan Dell Foundation Invest $1.5m In Microfinance Institution Arohan
Source: VCCircle.
MICROFINANCE EVENT: Global Summit on Microfinance as an Alternate Asset Class for Institutional Investors
GLOBAL SUMMIT ON MICROFINANCE AS AN ALTERNATIVE ASSET CLASS FOR INSTITUTIONAL INVESTORS
OCTOBER 29-30, MILLENIUM KNIGHTSBRIDGE HOTEL, LONDON, ENGLAND
The conference will focus on the opportunities and challenges for microfinance investments as the industry becomes larger and converges with mainstream financial institutions. Specific topics will include the current state of the microfinance sector, the risks and rewards for institutional investors involved in microfinance, an evaluation of rating metrics currently employed, lessons and opportunities taken from other asset classes, good governance in microfinance institutions (MFIs), and developing a universal framework for evaluating social returns. A complete agenda can be found of the conference website.
WHO’S WHO IN MICROFINANCE: The Legatum Group
The Legatum Group, founded in 2006 from the de-merger of Sovereign Global, is a collection of investment organizations based in Dubai, United Arab Emirates. The separate companies comprising Legatum include Legatum Capital, a global investment firm; Legatum Global Development, a socially-responsible investment firm that also provides grants and policy advocacy services to promote sustainable development; the Legatum Center for Development and Entrepreneurship at MIT; and the Legatum Institute, which is an independent policy advisory firm.
MICROCAPITAL STORY: Philip Vassiliou of Legatum Capital Publishes Editorial Supporting For-Profit Microfinance in The Economic Times
In a recent Economic Times editorial, Philip Vassiliou, managing director of Legatum Capital, an international investment firm, argues that, “to reach its full potential, the microfinance sector must embrace free market principles of competitive pricing and commercial incentives.” He also believes that “modifying these incentives, however noble the intention, will only damage the natural development of the sector.” His comments come at a time of fierce debate over the benefits of commercial microfinance.
MICROCAPITAL STORY: Pochampally Chenetha Kalanetha Collectives, Samhita Microfinance and Synergics Awarded at the 2008 Srijan Microfinance Business Plan Competition hosted by Intellecap, Standard Chartered Bank, Aavishkaar Goodwell and Financial Express
Srijan recently announced the winners of its 2008 Business Plan Competition, reported by MicroCapital here. Cash prizes were given to the top three contestants, with the first prize sponsored specifically by Standard Chartered Bank. The winners will also have the opportunity to meet investors, though Srijan has not yet specified which investors. All finalists will be able to create accounts on the India Development Gateway Portal, as reported here by MicroCapital.