by Jennifer Lee -

MICROCAPITAL STORY: ING Review of Citigroup’s Microfinance Activities and Its Syndicated Loan Securitizations for Compartamos, SKS Microfinance, and BRAC

The Dutch Bank ING published its updated 2008 study on commercial bank microfinance activity, called “A Billion to Gain? The Next Phase”. A MicroCapital summary of the paper can be read here. MicroCapital is reviewing the microfinance activities of several of large international banks covered in the study, such as Citigroup (Citi).

by Stephen Son -

MICROCAPITAL STORY: Microfinance in Benin Struggling as Microfinance Institution (MFI) PADME Faces Operational Challenges and Government Intervention

Microfinance in the West African nation of Benin is showing signs of struggling after one of the country’s major microfinance institutions (MFIs), facing internal and external turbulence and the threat of government intervention, has lost the confidence of potential investors, according to non-profit ACCION International.

by Jennifer Lee -

MICROCAPITAL STORY: ING Review of American International Group (AIG) and Its Partnerships with ACCION, FINCA, MicroCred, Pro Mujer, and Pak-Oman Microfinance Bank

The Dutch Bank ING published its updated 2008 study on commercial bank microfinance activity, called “A Billion to Gain? The Next Phase”. A MicroCapital review of the paper can be read here. MicroCapital is reviewing the microfinance activities of several of large international banks covered in the study, such as American International Group (AIG).

by Anthony Busch -

MICROCAPITAL STORY: Banco Bilbao Vizcaya Argentaria (BBVA) of Spain Lends $2m to Financiera Solidaria (FINSOL) and $100k to the Asociación Alternativa Para el Desarrollo Integral de las Mujeres (ADIM)

The Consultative Group to Assist the Poor (CGAP) reports in its list of recent transactions that the second-largest bank in Spain and Latin America, Banco Bilbao Vizcaya Argentaria (BBVA) financed USD 2,017,400 in loans to Financiera Solidaria (FINSOL) on January 25, 2008 and USD 100,000 to Asociación Alternativa Para el Desarrollo Integral de las Mujeres (ADIM) on February 19, 2008.

by Jennifer Lee -

MICROCAPITAL STORY: Wall Street Journal Interviews Muhammad Yunus and Discusses Grameen America

The Wall Street Journal (WSJ), a leading business publication, interviewed Muhammad Yunus, founder of Grameen Bank and 2006 Nobel Peace Prize winner, in an article titled “Muhammad Yunus: Subprime Lender”. The article covered Mr. Yunus’ entrance into U.S.’s microcredit market and his approach to credit lending.

by the MicroCapital Team -

MICROFINANCE EVENT: ACCION Joins With Standard Chartered Bank to Host Cracking the Capital Markets: South Asia

CRACKING THE CAPITAL MARKETS: SOUTH ASIA

APRIL 29-30, 2008, DELHI, INDIA

Cohosted by ACCION International and Standard Chartered Bank, this microfinance investment conference will bring together a wide range of finance professionals – institutional and private investors, leading microfinance institutions in Asia, international and regional banks, emerging markets specialists and rating agencies – to discuss the successes, challenges and trends of microfinance investment in South Asia.

by Jennifer Lee -

PAPER WRAP-UP: Microfinance Cracking the Capital Markets II

MicroCapital will review the conclusions from last year’s conference in preparation for the upcoming third annual Microfinance Cracking the Capital Markets conference in May, 2008. The conference was summarized in a 16-page publication written by Rekha Reddy and is part of ACCION’s InSight series, available here. The conference was hosted by ACCION International and sponsored by Credit Suisse. ACCION is a private, non-profit microfinance organization founded in 1961 that specializes in global micro-enterprise loans, business training, and other financial services.

by Jennifer Lee -

MICROCAPITAL STORY: Compartamos Windfall One Year Later

Nearly one year since the well-publicized and successful IPO of Banco Compartamos, its stock has not maintained its initial and sizable gains. Compartamos is Mexico’s largest microfinance bank, the first “home-grown” microfinance institution to complete an IPO, and the continued subject of debate within the microfinance industry.

by Jake Keller -

MICROCAPITAL STORY: International Finance Corporation (IFC), a Member of the World Bank Group, Supports Creation of Banco Popular Covelo (Bancovelo), a Microfinance Institution in Honduras

In a press release, the International Finance Corporation (IFC), a member of the World Bank Group, announced that it has completed a package to provide up to USD 2 million (11.8 percent of total new capital) of financing and over USD 400,000 of advisory services to create Banco Popular Covelo (Bancovelo), a microfinance institution (MFI) in Honduras. The announcement of the package last year, enabled Bancovelo, the creation of a 2007 merger of Grupo Microfinanciero Covelo’s (GMC’s) Popular Covelo, and its two sister organizations, Fundacion Covelo and Popular Asociacion de Ahorro y Prestamo AAP, to receive its banking license in December of 2007. Other funders and advisers of the newly created bank include ACCION International, the Belgian Investment Company for Developing Countries (BIO), the Netherlands Development Finance Company (FMO) and Banco Centroamericano de Integracion Economica (CABEI), all with equal equity shares of 11.8 percent.

by Elizabeth Nelson -

MICROCAPITAL STORY: Microfinance Debate Featured on BusinessWeek.com, Vikram Akula of SKS Microfinance and Chuck Waterfield of Microfin Weigh In

Following an article in the December 13 edition of Business Week entitled “The Ugly Side of Microlending,” Business Week’s website now features a point-counterpoint which asks the question: Does microfinance helps low-income entrepreneurs in developing economies more than it hurts them? Vikram Akula of Indian microfinance bank SKS Microfinance Private Ltd. argues in favor of the proposition, while Chuck Waterfield of Microfin argues that the banks are generally more harmful than beneficial to low-income entrepreneurs. The core issue of the debate centers on whether the banks are usurious in the interest rates they charge.

by Mary Fu -

MICROCAPITAL STORY: International Finance Corporation (IFC) and Wachovia Capital Markets, LLC Co-Arrange USD 40 Million for Mibanco in First International Syndication in Latin American Microfinance

International Finance Corporation (IFC), a member of the World Bank Group, and Wachovia Capital Markets, LLC, a subsidiary of Wachovia Corporation, have co-arranged a USD 40 million syndicated financing agreement for Mibanco (Banco de la Microempresa S.A.), a leading private commercial microfinance bank in Peru. As the first international syndication for a microfinance institution in Latin America, this transaction will allow Mibanco to offer longer loan maturities to its clients, as well as reach more rural customers.

by Mary Fu -

MICROCAPITAL STORY: ACCION Gateway Microfinance Investment Vehicles Fund (GMIV) Invests in Lok Capital, AfriCap

ACCION International’s Gateway Microfinance Investment Vehicles Fund (GMIV) invested in Lok Capital, raising its total resources from USD 12 million to USD 14.5 million, and participated in the recapitalization of AfriCap Microfinance Investment Company, helping raise its total capital from USD 14 million to USD 50 million in its second round of investment.