by Lori Curtis -

MICROCAPITAL STORY: FMO Invests $10 Million in Sri Lankan LOLC Micro Finance Company

Sri Lankan company Lanka ORIX Leasing Company PLC (LOLC) will launch LOLC Micro Finance Company (LOLC MF) with a USD 10 million loan and equity injection from the Netherlands Development Finance Company (FMO). FMO is investing USD 2 million in equity, USD 1.5 million as a convertible loan and USD 6.5 million as a senior loan. FMO will own 20 percent of LOLC MF. This will be the first Sri Lankan microfinance institution (MFI) to have foreign shareholding. LOLC MF already has a Rs 2.3 billion (USD 21.2 million) loan portfolio which has a non-performing loan ratio on a portfolio-of-risk basis of around 5 percent.

by Mary Fu -

WHO’S WHO IN MICROFINANCE: Dr. Jennifer Riria

In the microfinance industry, Dr. Jennifer Riria is internationally known first, as the chief executive officer (CEO) of Kenya Women Finance Trust (KWFT), the largest microfinance institution (MFI) in Kenya, and second, as a board member of Women’s World Banking, a global microfinance network consisting of over 53 MFIs from 30 countries.

by Steven Craig -

MICROCAPITAL SPECIAL FEATURE: 2007 Equity Investments in Small and Medium Sized Microbanks, Part 3 of 3

December 10, MicroCapital.org featured Part 2 of a series on 2007 Equity Investments in Small and Medium Sized Microbanks. Previously, detailed information was provided on institutions with less than USD 100 million in assets. Here, in Part 3, we provide detailed financial and outreach information on microbanks with total assets greater than USD 100 million and less than USD 200 million. The institutions are presented in ascending order based on asset size.

by Steven Craig -

MICROCAPITAL STORY: Rural Impulse Fund Lends $300k to Latin America Microfinance Institution Fundación ESPOIR

The Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse, reported the Rural Impulse Fund, an investment fund managed by Icofin, based in Antwerp, Belgium, issued a loan of USD 300,000 to Fundación ESPOIR, a Latin America microfinance institution (MFI).

by Steven Craig -

MICROCAPITAL STORY: Rural Impulse Fund Lends $500k to Nicaraguan Microfinance Institution PRESTANIC

The Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse, reported the Rural Impulse Fund, an investment fund managed by Incofin, based in Antwerp, Belgium, issued a loan of USD 500,000 to PRESTANIC, a rural Latin America microfinance institution (MFI).

by Mary Fu -

MICROCAPITAL STORY: Kenya Women Finance Trust (KWFT) to Transform from Microfinance Institution (MFI) into Commercial Bank

Kenya Women Finance Trust (KWFT) has begun the conversion process into a commercial bank that is expected to be completed by the end of 2008. The conversion follows the footsteps of K-Rep Bank and Equity Bank, former Kenyan microfinance institutions that were transformed into commercial banks in 1999 and 2004, respectively. According to CEO Dr. Jennifer Riria, KWFT hopes to become a “one-stop-shop” financial institution that will offer savings accounts, in addition to loans.

by Mary Fu -

MICROCAPITAL STORY: Microfinance Institution Kenya Women Finance Trust (KWFT) Officially Launches Kinga Ya Jamii, a Last-Expense Insurance Product

The Kenya Women Finance Trust (KWFT) officially launched Kinga Ya Jamii, a last-expense insurance product. Its primary purpose is to enable KWFT’s clients and their families to offset funeral expenses.

by the MicroCapital Team -

Bolivia’s Fundación AgroCapital Given $1 million Line of Credit from Impulse Microfinance Investment Fund

Fundación AgroCapital received a $1 million credit line from Impulse Microfinance Investment Fund. The Bolivia-based Fundación AgroCapital provides short- and medium-term loans for microenterprises involved in rural production, transportation, and distribution. Founded in 1992, it had assets of $19.8 million and $16.3 million in outstanding loans at year end 2005. Return on assets stood at 1.81% while debt to equity was 92.35%. All figures are from MIX Market.

Continue reading “Bolivia’s Fundación AgroCapital Given $1 million Line of Credit from Impulse Microfinance Investment Fund”

by the MicroCapital Team -

Impulse Microfinance Fund Makes New Loans to Microfinance Bank of Azerbaijan, FAMA Nicaragua, CRECER Bolivia, PADME Benin, and PRASAC Cambodia

Impulse Microfinance Fund, a US$15,413,875 microfinance investment fund managed by Incofin was founded in 2004 by Incofin and four Belgian institutional investors. The fund strives to strengthen financial markets in developing countries and achieve a “double bottom line” of financial and social returns on its investments. The fund recently extended five new loans to microfinance institutions around the world.
Continue reading “Impulse Microfinance Fund Makes New Loans to Microfinance Bank of Azerbaijan, FAMA Nicaragua, CRECER Bolivia, PADME Benin, and PRASAC Cambodia”

by the MicroCapital Team -

Impulse Microfinance Investment Fund Made $1,250,000 Debt Investment in Azerbaijan Micro Finance Bank (AMFB)

Established in 2002 by the European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), Black Sea Trade and Development Bank, and German LFS Financial Systems GmbH, AMFB provides financial services to micro and small business within the country. The bank’s typical microloans are between $400 and $10,000 for a maximum of 9 months. In June 2005, the Azerbaijan Microfinance Association reported that AMFB had a total loan portfolio of more than $11.4 million. It is the only one of the 45 commercial banks in Azerbaijan that focuses on microfinance services. AMFB does not report to the MIX Market, the World Bank’s microfinance information clearinghouse. Further information about their performance is not publicly available.

Established in 1992, Incofin invests in MFIs in 14 countries, and in mid-2005 had total assets of $5.6 million. The duration of Incofin’s loans, which are between $120,000 and $600,000, is five years, and the terms offered are “LIBOR plus full cost plus full risk”. At the end of 2004, Incofin, along with KBC, Boerenbond, VDK Spaarbank, Volksvermogen (Belgian institutional investors) set up the Impulse Microfinance Investment Fund, which had initial capital of å¥5 million. By mid-2005, the fund’s assets were worth $15,413,875. The fund invests between $300,000 and $1.5 million in MFIs, and offers the same terms as Incofin.