There are now more details available regarding the much-anticipated initial public offering (IPO) of SKS Microfinance Limited, a microfinance institution (MFI) based in India, which MicroCapital covered most recently on March 9, 2010.
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MICROCAPITAL BRIEF: State Bank of India, a Nationalized Commercial Bank, Provides $43.9m Loan to Hyderbad-Based Microfinance Institution (MFI), SHARE Microfin Limited
The State Bank of India (SBI), a nationalized commercial bank, has provided an INR 200 crore loan, the equivalent of over USD 43.9 million, to SHARE Microfin Limited, a microfinance institution (MFI) based in Hyderabad, India.
MICROCAPITAL BRIEF: SKS Microfinance, a Microfinance Institution (MFI) Based in India, Expected to File for Initial Public Offering (IPO) in Next Four Weeks
SKS Microfinance Limited, a microfinance institution (MFI) based in India, is expected to file for an initial public offering (IPO) in the next three to four weeks, according to three sources that news provider, Reuters, does not name.
MICROCAPITAL BRIEF: Finance Division of Larsen and Toubro to Extend Microfinance Lending Facility to Indian States of Gujarat and Orissa and Establish Insurance Program
The finance division of Larsen and Toubro, a publicly-held engineering and construction company, will extend its microfinance lending facility to Gujarat and Orissa, two states in North India.
MICROCAPITAL BRIEF: IFMR Capital Structures $6.5m Securitization of Microloans Originated by Four Microfinance Institutions in India
IFMR Capital recently completed a multi-originator securitization of micro-loans originated by Asirvad Microfinance Pvt Ltd, Sahayata Microfinance Pvt Ltd, Satin Creditcare Network Ltd and Sonata Finance Pvt Ltd.
MICROCAPITAL BRIEF: Grameen Koota, India-Based Microfinance Institution (MFI), Receives Rs 27.5 Crore ($5.88m) in Equity Capital
Grameen Koota, an India-based microfinance institution (MFI) that is a division of Grameen Financial Services Private Limited, has raised equity capital worth INR 27.5 crore, the equivalent of over USD 5.88 million [1,2].
The funds were raised through investments from four funds: Italy’s MicroVentures SpA, Luxmbourg’s MicroVentures Investments (an affiliate of MicroVentures SpA), Belgium’s Incofin, and Aavishkaar Goodwell, an “Indian-Dutch joint venture” [3,4,5]. This is Grameen Koota’s second round of equity funding, after receiving an equity investment in 2008 of INR 9.2 crore, the equivalent at the time of over USD 2.3 million, from Aavishkaar Goodwell [6]. According to Suresh Krishna, the Managing Director of Grameen Koota, this investment will be used to increase the MFI’s number of borrowers in the Indian states of Karnataka and Maharashtra, to expand lending to the states of Andhra Pradesh, Tamil Nadu, and Madhya Pradesh, and to “invest in technology development” [1,7].
MICROCAPITAL BRIEF: International Finance Corporation (IFC) Takes $1.1m Equity Stake in Belstar, Microfinance Division of Hand in Hand of India
International Finance Corporation (IFC), a member of the World Bank Group, has agreed to provide equity of USD 1.15 million to Hand in Hand’s microfinance arm, Belstar Investment and Finance Limited. Hand in Hand is an NGO that is involved in efforts such as reducing child labor and malnutrition and improving solid waste management. The financing is intended to enable Belstar to obtain support from other investors and IFC Advisory Services will help Belstar improve risk management, staff training and product range.
MICROCAPITAL BRIEF: India Financial Inclusion Fund (IFIF) Raises USD 90m in 15 Months for Microfinance Investments
The India Financial Inclusion Fund (IFIF), an equity fund that invests in companies that provide financial services to low-income clients, has, after its final closing, raised USD 90 million worth of capital in the last fifteen months, according to Mona Kachhwaha, the Director of Investments at Caspian Advisors Private Limited, the adviser to IFIF [1,2,3]. The fund will be used to invest in microfinance institutions (MFIs), companies that provide low-cost housing, and other “firms that enable the provision of financial services to the poor” such as “business correspondents to banks and technology companies in [the] sector” [1]. It includes commitments from companies such CDC Group, a “UK government-owned fund” that invests in funds intended for emerging markets [1,4,5,6]. MicroCapital reports on early IFIF fund-raising from CDC Group and other sources can be found in the bibliography [5,6].
MICROCAPITAL.ORG BRIEF: ACCION International invests $500,000 for 49.5% Equity Stake in Indian Microfinance Institution Saija Finance Pvt Ltd
ACCION International recently invested USD 500,000 for a 49.5 percent equity stake in Saija Finance Pvt Ltd, [4] a microfinance institution (MFI) based in Northern India that started in April 2008. The investment was made through ACCION International’s ACCION Gateway Fund. [3] Saija is the fund’s fourth investment in India. Other recent investments in Indian MFIs include Swadhaar FinServe, [5] which caters to the urban poor, Lok Capital, [6] which serves social enterprises, and United Villages, [7] which focuses on the rural poor.
MICROCAPITAL.ORG STORY: Indian Microfinance Sector Sees Increase in Private Equity Investments from $61m to $143m
The Financial Express, a web-based Indian financial news source, said that from January to October of 2009, the Indian microfinance sector has seen a significant growth in private equity (PE) investments. In that time period, eleven PE deals worth USD 143 million were carried out, compared to eight deals worth USD 61 million in the previous year. According to the article, the Indian microfinance sector’s compound annual growth rate (CAGR) has reached 105% [1].
MICROCAPITAL.ORG STORY: SEWA, SKS Microfinance and The Aryavart Gramin Bank Provide Alternative Power to the Rural Poor
A number of Indian MFI’s now provide loans for cost effective alternative power to people who have little or no access to electricity. With heavy reliance on kerosene and firewood, millions of homes have little or no light after dark. And the time spent collecting firewood or waiting in line to purchase kerosene leaves little time for income generating activities. This makes it difficult for many of the rural and urban poor to elevate themselves out of poverty.
MICROCAPITAL.ORG STORY: Continuing Challenges To Expanding Microfinance In India – Criminal Activity And Danger Impede Microfinance Activities In India’s Naxal-Dominated Areas And Remote Tribal Groups In The Non-Cash Communities Of Jharkhand And Chhattisgarh Find Microcredit Unfamiliar
A recent report by Deepti Chaudhury on the Live Mint online financial news portal entitled ‘Crime, inaccessibility impede spread of microfinance activity’ [1] discusses the challenges faced by some MFIs that operate in certain regions in India including Bangalore, Uttar Pradesh and the remote areas in Jammu and Kashmir. The report talks about an interview with a potential microfinance client in Uttar Pradesh’s Bahraich town. The potential client has been unable to secure access to microcredit facilities despite being young and having the means to repay simply because he lives in an area where ‘even the MFIs don’t want to go because widespread poverty has made forming self-help groups difficult’. In addition, most people in the area work in a livelihood or sector that cannot be expanded.
MICROCAPITAL.ORG STORY: CEO Of Delhi-Based NGO Access Development Services Warns Of The Risks Of Commercialization And Government Intervention In Microfinance And Discusses The Need For ‘Microfinance-Plus’ Services Including Livelihood Planning
In a recent article in India’s Business Standard online paper entitled ‘There is a tension between scale and soul in microfinance’ [1], reporter Sreelatha Menon interviews the CEO of Access Development Services (ADS) [2], Mr Vipin Sharma, on microfinance and the forthcoming event organized by on ADS later this month on responsible and social finance. Delhi-based ADS is a non-profit company that was established in March 2006 with a focus on ‘incubating emerging MFIs’ and helping them ‘upscale their operations, enhance their portfolio and meet the growing demand among poor communities’. ADS also seeks to facilitate on-lending fund flows from financial institutions through the ACCESS Microfinance Alliance platform [3].
NEWS WIRE: India: Rural Microfinance Institutions Tap Mobile Banking for Growth
Source: ZDNet Asia.
MICROCAPITAL.ORG STORY: SKS Microfinance and Bajaj Allianz Life Insurance Co. Ltd. Extend Microinsurance Project ‘Swayam Shakti Suraksha’ to Cover Husbands of SKS Members
SKS Microfinance, a microfinance organization based in Andhra Pradesh (India), recently announced its partnership with life insurance company Bajaj Allianz to extend its microinsurance project, ‘Swayam Shakti Suraksha,’ to cover the husbands of SKS members.
PRESS RELEASE: Intellecap Chairman and Aavishkaar Founder Vineet Rai Responds to The Wall Street Journal
Source: Intellecap.
NEWS WIRE: India: Mobile Handset Maker Nokia Rolling Out Microfinance Scheme to Sell More Phones
Source: Thaindian News.
MICROCAPITAL STORY: The Impact Of Microfinance On Child Labour And The Need To Improve Outreach – Lessons From Pakistan
In an article on Pakistan’s ‘The Nation’ online news portal, reporter Saadia Qamar makes a number of important observations on microfinance based on a publication by the State Bank of Pakistan (SBP) entitled ‘Towards Achieving Social and Financial Sustainability – A study on the performance of microfinance in Pakistan’. The publication is not currently available in the public domain. According to the report in The Nation, results of the SBP study reinforces a point that has been made on many prior occasions in both informal and scientific contexts; namely that the provision of microcredit alone is not always sufficient to alleviate the socio-economic problems of poor households.