by Amy Rennison -

MICROFINANCE EVENT: Financial Research Associates to Host First Microfinance Conference for Institutional Investors

MICROFINANCE FOR THE INSTITUTIONAL INVESTOR; JANUARY 14-15, 2008; NEW YORK, USA

The event, hosted by Financial Research Associates, is designed to help institutional investors understand the world of microfinance and allow them to identify low-risk market-rate returns while alleviating poverty. The conference will review microfinance institutions and capital management in-depth and will cover specific topics such as microfinance rating methodology, securitization techniques and portfolio risk reduction strategies. There will be speakers and keynote presentations from some of the leading microfinance players.

by the MicroCapital Team -

MICROCAPITAL STORY: European Bank for Reconstruction and Development (EBRD) and Citigroup Loan USD 16.4 Million to ACBA-Credit Agricole Bank in Armenia

This is another story coming courtesy from the latest issue of the Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse. ACBA-Credit Agricole Bank (ACBA), an Armenian microfinance institution (MFI), has received two loan investments totaling over USD 16.4 million. The European Bank for Reconstruction and Development (EBRD), a UK-based international financial institution, provided half of the investment in a USD 8.2 million loan. Citigroup has matched EBRD’s USD 8.2 million loan, however lent ACBA the finances through EBRD’s A/B loan structure. According to the EBRD website, the A/B loan structure allows EBRD to sign off as the official lender of record, while Citigroup receives the lender’s benefits that would have otherwise gone to EBRD. The combined loans add to ACBA’s gross loan portfolio of 90.4 million, an increase of 18.1 percent. ACBA now has over USD 158.5 million in total assets (see “Financial Data”).

by the MicroCapital Team -

NEWS WIRE: Microfinance Firms Turn into Delivery Boys

HYDERABAD: India’s microfinance, which is perhaps the ruling flavour of private equity players, is actually turning out to be a distribution highway for a variety of goods and services given the huge outreach of over one million customers each that large entities like Share, SKS, Basix and Spandana have managed to create.

Fuelled by private equity investment and expansion, many of these entities are looking at reaching as many as five million people each in the near term. While the creation of reach has been purely for their own businesses of vending micro-loans, it now transpires that their channel could be widely used, and profitably too, for peddling insurance, money transfer, procurement and supply chain financing for agri and allied activities.

by the MicroCapital Team -

Upcoming Events åö Chicago Microfinance Conference (CMFC)

May 25th 2007, Chicago, USA

Established by the University of Chicago, Kellogg School of Management, and Harris School of Public Policy Studies, the conference aims to “advance strategic debate of the future of microfinance” and bring together practitioners, academics and industry leaders. Guests will include Lara Strom of Pro Mujer, and Paul Christensen who manages ShoreCap International Ltd, a private equity fund which invests in small businesses in developing economies. A keynote address will be given by Vikram Akula, founder and CEO of SKS Microfinance, a microfinance institution based in India.

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by the MicroCapital Team -

Microfinancier Vikram Akula Wins Indian Social Entrepreneur of the Year Award

The CEO and Founder of SKS Microfinance, one of India’s emerging microfinance firms was awarded the 2006 India Social Entrepreneur of the year award at the India Economic Summit, a congregation of Indian Business, political and civil society leaders. This is yet another significant recognition for Vikram Akula, a former McKinsey consultant and Fulbright scholar, who has featured in Time magazines ‘100 people who shape our world’. He was also part of the Wall Street Journal cover page story on for-profit microfinance that we covered here.
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by the MicroCapital Team -

Indian Insurers Begin Offering Micro-Insurance

Life Insurance Corporation, New India Assurance, United India Insurance, and Oriental Insurance will begin offering microinsurance. All four insurers will use microfinance and nongovernmental organizations to act as agents for their services. SEWA and SKS MicroFinance are notable among the forty institutions that have met with the insurers.

Continue reading “Indian Insurers Begin Offering Micro-Insurance”

by the MicroCapital Team -

ABN AMRO Bank Makes $4.5 Million Microfinance Investment into Indian Microfinance Institution SKS

Dutch ABN AMRO Bank recently loaned Indian SKS Microfinance Private, Ltd., a microfinance institution (MFI), $4.5 million. With over å¥855 billion in total assets as of June 2005, ABN AMRO ranks as the 20th largest commercial bank in the world, measured by tier 1 capital (equity capital and disclosed reserves).

Established in 1997 as a “non-profit society”, SKS India began operations in microfinance services, then incorporated SKS Microfinance PrivateLtd (SKSML) in 2003 as a “for-profit spin-off” that took over the microfinance operations specializing in savings, loans, and insurance. As of June 2005, the organization had total assets just over $458 million and total loans close to $400 million for about 87,000 clients.

Additional Resources

1) Consultative Group to Assist the Poor (CGAP): “Microfinance Capital Markets Update” is the best source for monthly updates on debt and equity deals in microfinance.
2) “ABN AMRO: Profile.”
3) “SKS: Product and Services.”
4) “SKS Milestones.”