by Jaclyn Berfond -

MICROCAPITAL STORY: European Development Finance Institutions Part 2: KfW Entwicklungsbank Remains One of the Largest Global Investors in Microfinance

KfW Entwicklungsbank (KfW), a development bank that finances investments on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), has made significant contributions to the microfinance sector in recent years. Between January 2007 and April 2009, KfW has invested at least USD 250 million in microfinance services around the world, with its outstanding commitments to the sector likely making that number even higher.

by Sally Levy -

MICROCAPITAL STORY: International Finance Corporation (IFC) Worldwide Microfinance Investment Deals March and April 2009 of $51m and EURO 7m

The International Finance Corporation (IFC), a member of the World Bank Group, provides investments and advisory services to build the private sector in developing countries.  It made the following microfinance investment deals in March and April 2009 of USD 51m and EURO 7m.

by Jaclyn Berfond -

MICROCAPITAL STORY: European Development Finance Institutions Part 1: European Bank for Reconstruction and Development (EBRD) Invests Over USD 1 Billion in Microfinance Initiatives Since 2007

The European Bank for Reconstruction and Development (EBRD), a multilateral development institution that fosters private sector investment in 27 countries in Central Europe and Central Asia, has supported the microfinance sector through its Micro, Small and Medium Business Program since its establishment in 1991. In the last two years alone, EBRD has provided over USD 1 billion – through debt, equity facilities and technical assistance – to microfinance programs throughout the region.

by Goda Thangada -

MICROCAPITAL STORY: Key Indonesia Microfinance Player Bank Danamon Raises USD 362m In Capital

In April, Bank Danamon, Indonesia’s fifth largest lender, completed a USD 362 million stock offering, the largest ever bank stock offering in Indonesia. Citigroup Global Markets Singapore and Morgan Stanley Asia were joint standby purchasers on the deal. Danamon has a very active microfinance division called Danamon Simpan Pinjam (DSP). Although Danamon experienced 30.2 percent drop in year over year first-quarter net profit in 2009, its Capital Adequacy Rating (CAR) increased to 22 percent from 15.4 percent due to the stock offering. In an interview with The Asian Banker, Danamon’s President Director and former Citigroup executive, Sebastian Paredes, stated, “After this capitalisation, Bank Danamon is probably going to be one of the highest capitalised banks in the world.”

by Sally Levy -

MICROCAPITAL STORY: International Finance Corporation (IFC) Microfinance Investment Deals from January to April 2009 in Latin American and the Caribbean

The International Finance Corporation (IFC), a member of the World Bank, is one of the top five investors in Latin America and the Caribbean. The IFC contributed 11 percent of total LAC funding according to a 2008 survey. Development Finance Investors (DFIs) such as the IFC are government owned bilateral or multilateral development agencies with investments in microfinance. The IFC makes direct and indirect investments and also has an advisory arm. Direct investments may establish microfinance institutions (MFIs) and indirect investments are in microfinance investment vehicles such as private investment funds. In their advisory role the IFC provides training and technical support, partners with organizations such as the World Bank and the Consultative Group to the Poor (CGAP) and supports innovative technology.

by Jaclyn Berfond -

MICROFINANCE PAPER WRAP-UP: MIX and Intellecap Present the Asia Microfinance Analysis and Benchmarking Report 2008

Produced by Microfinance Information Exchange, Inc. (MIX) and Intellecap, March 2009, 20 pages, available at: http://www.themix.org/sites/default/files/2008%20Asia%20Microfinance%20Analysis%20and%20Benchmarking%20Report.pdf

The “Asia Microfinance Analysis and Benchmarking Report 2008” analyzes the evolution of the microfinance industry in South Asia and East Asia and the Pacific (EAP), with a focus on outreach and scale, funding sources, and financial performance in fiscal year (FY) 2007.

by Sally Levy -

MICROCAPITAL STORY: Mexican Microfinance Institution, Financiera Independencia, Reports First Quarter Net Income of Ps. 117.2m (USD 8.9m)

Financiera Independencia, a Mexican microfinance bank, reported their first quarter 2009 Net Income of 117.2 million pesos (USD 8.9 million). This was a decrease of 40 percent on a year-to-year basis. Net Operating Revenue of 612.8 million pesos (USD 46.6 million) did not fall significantly over the same period (0.2 percent), however Interest Expense increased by 150 percent or 57 million pesos (USD 4.3 million) and the Provision for Loan Losses increased by 61 percent or 76.8 million pesos (USD 5.8 million).

by Zoran Stanisljevic -

MICROCAPITAL STORY: Grameen Foundation and Women’s World Banking Express Concern Over the Potential Crisis in Punjab, Pakistan’s Microfinance Sector

According to the Business Recorder (a Pakistani Daily Newspaper), the Grameen Foundation (GF) and Women’s World Banking (WWB), recently urged Punjab Chief Minister Mian Shahbaz Sharif to take swift action to support the microfinance sector and help curtail inappropriate interventions by local politicians. While detail regarding the exact cause and nature of the elected representatives’ involvement is currently unspecified, President Alex Counts of GF in Washington DC and Mary Ellen Iskenderian, President and CEO of WWB in New York City, expressed concern. The letter states that heads of the two U.S. non-profit support organizations for microfinance are “concerned that the microfinance sector in Pakistan is under threat. The intervention of some local elected representatives has given rise to a crisis, a situation, which has damaged the reputation of the microfinance sector in Pakistan and could lead to a major crisis with national as well as international implications.”

by Sally Levy -

MICROCAPITAL STORY: Tanzania’s National Microfinance Bank (NMB) to add new branches and ATMs in 2009

The National Microfinance Bank (NMB) of Tanzania is set to expand its number of branches in 2009. It announced a plan to add between 10 and 15 new branches and nearly double its number of ATM machines. Currently it owns 172 ATMs and has 128 branches. NMB is Tanzania’s largest bank in terms of number of branches and customer deposits. This is expected to cost nearly 10 billion Tanzanian Shillings (TZS) or USD 7.5 million.

by Jaclyn Berfond -

MICROFINANCE EVENT: International Insurance Society (IIS) to Host Annual Seminar: Patronage of Her Majesty Queen Rania Al Abdullah of Jordan Brings Microfinance Focus

International Insurance Society’s 45th Annual Seminar: Maintaining Sustainability in a Changing World

June 7-10, 2009, Amman, Jordan

by Ryan Hogarth -

MICROFINANCE EVENT: USAID’s Microfinance News-Source, microLINKS, will Host Online Discussion on Value Chains for Vulnerable Populations

Speaker’s Corner 32: Value Chains for Vulnerable Populations

April 28 – 30, 2009, participate online: http://www.microlinks.org/ev.php?ID=37239_201&ID2=DO_COMMUNITY

by Jaclyn Berfond -

MICROCAPITAL STORY: Caspian Advisors-Managed India Financial Inclusion Fund (IFIF) Raises Additional $20m for Investment in Microfinance Institutions

The India Financial Inclusion Fund (IFIF), an off-shore equity fund, has raised USD 20 million in capital, taking its total fund size to USD 58 million. IFIF focuses on equity investments in Indian companies that are “directly or indirectly associated with bringing about the inclusion of the poor within the formal financial system.”

by Ryan Hogarth -

MICROFINANCE EVENT: Muhammad Yunus and Bill Clinton will be Keynote Speakers at Second Annual Georgetown Global Forum

Second Annual Global Forum to Examine Development in the Midst of Economic Downturn

April 17, 2009, Grand Hyatt New York, 109 East 42nd Street at Grand Central Terminal, New York, NY

by Zoran Stanisljevic -

MICROFINANCE EVENT: Microfinance California 2009: Micro Loans, Macro Event, May 28, 2009, at Stanford University, California

Microfinance California 2009: Micro Loans, Macro Event, May 28, 2009, at Stanford University, California presented by Opportunity Fund, KIVA, the Silicon Valley Community Foundation and sponsored by Wells Fargo, Chevron, Citi and the James Irvine Foundation.

by Bharathi Ram -

MICROCAPITAL EVENT: Investments in Microfinance 2009: Conference on Surviving the Liquidity Crisis and Ensuring Sustainable Growth to be held in London, United Kingdom from July 7-8, 2009

Investments in Microfinance 2009: Surviving the Liquidity Crisis and Ensuring Sustainable Growth

July 7-8, 2009, London, United Kingdom

HansonWade Ltd., a London based research firm will host Investment in Microfinance 2009, a two-day conference event in London on the 7th and 8th of July, 2009. The event is focused specifically on the theme ‘Surviving the Liquidity Crisis and Ensuring Sustainable Growth’ and will explore how key microfinance institutions (MFIs) and funds are changing their strategies to ensure survival amidst the financial crisis. Participants at the event include institutional investors, portfolio managers, equity investors, consultants, asset managers, philanthropic investors and socially responsible investors. Key organizations participating in this event include the Deutsche Bank, JP Morgan, CitiGroup, Ford Foundation, Rockefeller Foundation, SKS Microfinance, Blue Orchard, IFC, KFW and Women’s World Banking among others. The event will be held at the Hilton Easton Hotel in London.