MICROCAPITAL STORY: ASA International Secures $125m in Largest Microfinance Equity Commitment to Date

Catalyst Microfinance Investors (CMI) of Mauritius announced on Tuesday that it had raised USD 125 million through the largest microfinance equity sale to date. Investors included private individuals as well as a number of institutional investors such as the Dutch pension fund, ABP and the US financial services organization, TIAA-CREF. The majority of the funds will be channeled to ASA International of Bangladesh, who will use the increased capital to expand operations in Africa and Asia.

MICROCAPITAL STORY: Standard and Poor’s to Launch Rating Program for Microfinance Institutions in Latin America

In a press release, Standard and Poor’s Ratings Service (S&P) announced that it intends to launch a pilot ratings program for Microfinance Institutions (MFIs) in Latin America and the Caribbean. The Inter-American Development Bank (IDB) will sponsor the pilot program and will work closely with the S&P throughout the process.

MICROCAPITAL STORY: SKS Microfinance Raises $37 Million in Equity Sale

SKS Microfinance of Hyderabad, India, recently raised 147 Crore Rupees, the equivalent of over USD 37 million, through its third round of equity sales in recent months. Investors include Silicon Valley Bank (SVB) of California, Columbia Pacific, Sequoia Capital of California, Vinod Khosala of California, and Odyssey Capital.

MICROCAPITAL STORY: Standard Chartered of England, and China Foundation for Poverty Alleviation (CFPA) of China, Sign Loan and Co—Operation Agreements to Provide Microfinance Loan Facilities in China

In a press release, Standard Chartered’s China division announced that they will provide the China Foundation for Poverty Alleviation (CFPA), a China-based non-profit organization, with a local currency loan facility of 20 million Yuan, equivalent to over 2.75 million USD. According to the press release, this credit will be used to “finance the Microfinance projects aiming to provide financial support to farmers and owners of micro-enterprises in ten counties of seven provinces in China…” This will be the first loan facility by an international bank to a Microfinance Institution (MFI) in China.

MICROCAPITAL STORY: Swiss Agency for Development and Coorperation (SDC) Sponsors Intellecap’s Quarterly Publication Microfinance Insights

Swiss Agency for Development and Cooperation (SDC), has granted a sponsorship of INR 4,100,000 (USD 103,000) to Microfinance Insights, a quarterly microfinance magazine published by Intellecap, an Indian investment and consulting firm. The sponsorship will enable Microfinance Insights to increase its international reach and content, host events in conjunction with each issue, build a website, and continue to disseminate domain knowledge. According to SDC India’s Deputy Country Director Adrian Marti, SDC’s grant to Microfinance Insights stems from its belief that the knowledge sharing is a key factor in promoting the sustainable growth of the microfinance sector.

PAPER WRAP-UP: 2007 Microfinance Information eXchange (MIX) Global 100: Rankings of Microfinance Institutions

Published by Microfinance Information eXchange (MIX), 32 pages, available for viewing here.

MIX recently surveyed a global sample of 820 microfinance institutions (MFIs) that had a combined loan portfolio of USD 24 billion with over 53 million borrowers and 64 million savers. In addition to ranking MFIs along single categories (outreach, scale, profitability, efficiency, productivity, and portfolio quality), the 2007 edition of the report also utilizes new composite rankings to highlight the 100 top-performing MFIs that have achieved high outreach and low transaction costs, while maintaining transparency and boosting profitability. The report concludes that leading MFIs broke performance records on all fronts.

MICROCAPITAL STORY: Google.org of California Announces $3m Grant to Technoserve of Connecticut in Order to Support Small and Medium-Sized Enterprises (SMEs) in Moving Beyond Microfinance

Google.org, the charitable arm of Google, announced, in a press release, a multi-year grant of USD 3 million to Technoserve, a US based nonprofit organization that provides training and networking opportunities to small and medium sized enterprises (SMEs) in the developing world. This grant will provide general support to expand the organizations private-sector initiatives in Africa. Since 2006 Google.org has awarded Technoserve USD 1.7 million to develop and implement a business plan competition to support entrepreneurs in Ghana and Tanzania.

MICROCAPITAL STORY: Forbes’ Special Feature on Private Investment in Microfinance Includes Top 50 Microfinance Institutions

Forbes, a American business and financial news magazine, presented the list of top 50 microfinance institutions (MFIs) of 2007 in its special feature on the private investment in the microfinance industry.

MICROCAPITAL STORY: Old Mutual (OM) Supports Expansion of Women’s Development Bank (WDB) Microfinance into KwaZulu-Natal, South Africa with USD 710,000

Old Mutual (OM), the largest financial services provider in South Africa, recently released a press release announcing a donation of ZAR 5 million (USD 710,000) to the Women’s Development Bank (WDB) Microfinance, a South African non-governmental organization (NGO) that provides micro-loans and training for poor, rural women.

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.

MICROCAPITAL STORY: The Alliance for Fair Microfinance Launches with Discussion of Cost Prices of Micro-loans

The Alliance for Fair Microfinance (the Alliance) will launch with its first discussion period, which is set to start at the latest in the first week of January of 2008. The Alliance is an initiative to promote customer / client interests in the microfinance industry by providing direction and platform for discussion among the actors of the microfinance industry.