by Kenny Kline -

MICROCAPITAL STORY: IFC invests USD 20 million In Bank Respublika Intending to Boost Finance for Azerbaijan’s Businesses

The International Finance Corporation (IFC) announced it will invest USD 20 million in Bank Respublika, Azerbaijan’s fourth-largest private sector bank, to help increase lending to micro, small, and medium businesses in the country’s rural areas. [1]

Bank Respublika aims to more than double its lending to small businesses, and expects half of its loans to be in rural areas of Azerbaijan where there is significant unmet demand for financing.  IFC’s senior loan to the bank will support these goals. [1]

by Christopher Maggio -

MICROCAPITAL.ORG STORY: IFC Extends USD 15 Million Loan to Brazil’s Tribanco

The International Finance Corporation (IFC), the investment arm of the World Bank, has extended a loan of USD 15 million to Brazil’s Tribanco to support microentrepreneurs [1,2,3]. The loan has a five-year tenor, and comes after a USD 10 million loan in 2004 [1]. Tribanco’s Board President Juscelino Martins points out that ” it provides a longer tenor than is available normally in Brazil, and further diversifies the bank’s funding sources” [1]. The main beneficiaries of Tribanco’s loans will be “small retail outlets that provide basic goods and services to Brazil’s low-income population in small cities and remote rural areas” [1]. In addition to financing, the IFC will provide training to Tribanco’s staff including “financial literacy modules” in the form of “booklets and e-learning”.

by Christopher Maggio -

MICROCAPITAL.ORG STORY: Peru Ranks First in 2009 Microscope Microfinance Index, A Global Index on Business Environment for Microfinance Developed by the Economist Intelligence Unit (EIU), Released by the Inter-American Development Bank (IDB), the Corporación Andina de Fomento (CAF), the International Finance Corporation (IFC), and the EIU

Peru has been named the best country for microfinance in terms of business climate by the 2009 Microscope microfinance ranking from the Economist Intelligence Unit (EIU), the research arm of the Economist Magazine that provides “country, industry and management analysis” [1,2,3]. The 2009 Microscope was published jointly by the Inter-American Development Bank (IDB), the “main source of multilateral financing” in Latin America and the Caribbean, the Corporación Andina de Fomento (CAF) the primary source of multilateral financing in the Andean region, the International Finance Corporation (IFC), the investment arm of the World Bank, and the EIU [4,5,6]. Last year, Peru was named the best country for microfinance in Latin America and the Caribbean. This was covered by Microcapital in October of 2008 [7,8,9]. This year, the rankings were made globally and Peru still topped the list of 55 countries [1].

by Diya Chopra -

MICROCAPITAL.ORG STORY: Peruvian Commercial Bank, Banco de Credito, to Acquire Microfinance Group, Financiera Edyficar from CARE, International Finance Corporation (IFC), and MicroVest (MV)

Banco de Crédito del Perú (BCP) recently announced its deal with nongovernmental organization CARE, to purchase a 77.2% stake in the Peru-based microfinance company, Financiera Edyficar. BCP is a Peruvian publicly-traded commercial bank founded in 1889 and owned by Credicorp Ltd, a financial holding company in Peru. BCP offers services and products to businesses and individuals, as well as small and medium-sized enterprises [1]. In March 2008, BCP reported total assets of USD 17.3 billion, a debt-equity ratio of 1,422.10%, and a return on average assets of 2.13%. It has a BBB- credit rating from both Standard & Poor’s and Fitch Ratings. As of June 2009, BCP claimed 32% of loans and 36% of deposits in the Peruvian banking system. Approximately 97% of BCP is owned by Credicorp [2].

by Diya Chopra -

MICROCAPITAL.ORG STORY: International Finance Corporation (IFC) Invests $1.2m in Paraguay’s Financiera El Comercio

In June 2008, the International Finance Corporation (IFC) announced a proposed investment in Financiera El Comercio, a Paraguayan microfinance institution (MFI) [1]. On August 12, 2009 the proposal was approved and the IFC declared an investment of USD 1.2 million in the MFI. The investment is part of the IFC’s plan to protect and support MFIs in the wake of the economic crisis [2]. Details about the approved investment have yet to be disclosed, however the proposed investment projected a 12% equity investment in Financiera El Comercio. According to the proposal, the purpose of the investment is to help ensure the MFI’s sustainability and to provide capital support for its future growth [1].

by Bharathi Ram -

MICROCAPITAL STORY: International Finance Corporation (IFC) to Assist Four Microfinance Institutions (MFIs) in Central Asia to Accept Deposits

The International Finance Corporation (IFC), the private sector lending arm of the World Bank, is assisting four microfinance institutions (MFIs) in Central Asia to transform into banks or deposit-taking organizations [1], according to a press release issued by the IFC [1]. The IFC initiative, billed as the ‘Azerbaijan and Central Asia Microfinance Transformation Support Project’, is expected to help the four MFIs become more sustainable, expand their range of services and also help boost access in underserved communities in the region [1]. The MFIs benefiting from the Project are IMON International and Arvand in Tajikistan, Bai Tushum in Kyrgystan and Credagro in Azerbaijan. Aside of the implementation of microfinance best practices and transformation plans, IFC’s support also includes advisory services package in institution-building, developing a corporate strategy, and mentoring of senior management.

by Bharathi Ram -

MICROCAPITAL STORY: International Finance Corporation (IFC) to Invest USD 5 million in FM Bank, Poland’s First Microfinance Bank

The International Finance Corporation (IFC), the private sector lending arm of the World Bank has announced an investment of USD 5 million in FM Bank, a new microfinance bank based in Poland [1]. The investment would help the bank ‘to support the [Polish] microfinance sector and improve access to finance for micro and small businesses’. FM Bank, a spin-off from the operations of the Polish microfinance institution Fundusz Mikro, only recently received a commercial banking license and is reportedly the first microfinance bank in the country [1].

by Uyen Tran -

MICROCAPITAL.ORG STORY: The International Finance Corporation (IFC) Invests $4m in Equity in Sogebank, a Haitian Bank, to Finance Micro, Small, and Medium Enterprises

For discussion of this topic click here: http://microfinanceassociation.ning.com/forum/topics/deals-in-microfinance-the

The International Finance Corporation (IFC), a member of the World Bank, is investing USD 4 million in equity in Sogebank S.A. of Haiti to finance micro, small, and medium enterprises (MSMEs) [1]. According to the IFC’s Summary of Proposed Investment, Sogebank is the largest commercial bank in Haiti with total assets of approximately USD 750 million [2]. It has a branch network of 42 branches [1]. Its activities comprise of retail and corporate banking, microfinance, remittance distribution, and factoring, which operate as independent businesses through subsidiaries [2]. Information on the percentage of its business delegated to microfinance at Sogebank is not publicly available.

by Sally Levy -

MICROCAPITAL.ORG STORY: Faulu Kenya, International Finance Corporation (IFC), and Standard Chartered Bank Form Partnership to Extend Microfinance Operations in Kenya with $5.9m Loan

For discussion of this topic click here: http://microfinanceassociation.ning.com/forum/topics/deals-in-microfinance-the

Faulu Kenya, the International Finance Corporation (IFC) and the Standard Chartered Bank of Kenya have entered into a partnership to finance Faulu operations in Kenya with a KES 450 million (USD 5.9 million) loan [1, 2, 3, 4]. The IFC, a World Bank member, will provide a partial credit guarantee for 80 percent of the loan from Standard Chartered Bank to Faulu, a local microfinance institution (MFI) [1, 5]. The partnership aims to help Faulu reach more Kenyans by broadening its products and services. The IFC and Standard Chartered Bank will also provide advisory support to Faulu in relation to its recent license to become the first deposit taking MFI in Kenya [1, 5].

by Uyen Tran -

MICROCAPITAL STORY: The International Finance Corporation (IFC) in Washington, DC and European Investment Bank (EIB) in Luxembourg Create the Global Emerging Markets (GEMs) Risk Database Consortium with the European Bank for Reconstruction and Development (EBRD), African Development Bank (AfDB), and Inter-American Development to Join (IDB)

The International Finance Corporation (IFC), a member of the World Bank Group, and the European Investment Bank (EIB), the long-term lending bank for the European Union (EU), have agreed to create a Global Emerging Markets Risk Database Consortium. Other international financial institutions (IFIs) that will be joining the Consortium include the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and the Inter-American Development Bank (IDB). The Consortium is to pool data on individual institutions and strengthen risk-management practices among multilateral banks.

by Jaclyn Berfond -

MICROCAPITAL STORY: New Microfinance Institution AccessBank Tajikistan Established with Investments Totaling USD 11 million from Access Microfinance Holding, the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), and Kreditanstalt fuer Wiederaufbau (KfW)

Several international finance organizations have invested in a new microfinance institution, AccessBank Tajikistan.  Access Microfinance Holding AG (AccessHolding) will hold a majority stake in the new bank, and international investors including the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD), and Kreditanstalt fuer Wiederaufbau (KfW) will invest a total of USD 11 million for equity stakes.  AccessBank Tajikistan will launch operations in late 2009 in the Tajik capital, Dushanbe.

by Laura Anderson -

MICROCAPITAL STORY: International Finance Corporation (IFC) Invests USD 75 million in MTN Dubai subsidiary MTN Afghanistan to Expand Mobile Communications Access in Afghanistan

The International Finance Corporation (IFC), a unit of the World Bank Group, is providing a USD 65 million loan and USD 10 million in equity capital to MTN Afghanistan, a subsidiary of MTN Dubai and part of the South Africa-based MTN Group Ltd.  The investment is meant to support the expansion of MTN’s  mobile telephone network to meet growing mobile phone service demand in Afghanistan. The expansion is focused on low-income populations.  Details of the loan and equity investment were not available for this story, however James Ramadan, MTN Group’s Regional Vice President for Middle East and North Africa stated that the IFC was providing “long-term funding.”  The IFC hopes its investment will encourage other investors into the sector in Afghanistan. 

by Uyen Tran -

MICROFINANCE EVENT: Mobile Money Summit 2009 in Spain Hosted by Consultative Group to Assist the Poor (CGAP), Department for International Development (DFID), International Finance Corporation (IFC), and Groupe Speciale Mobile Association (GSMA)

MOBILE MONEY SUMMIT 2009

22-25 JUNE 2009, Fira Montjuï, BARCELONA, SPAIN

See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events

by Jaclyn Berfond -

MICROCAPITAL STORY: Pioneer in Microfinance Investing, Triodos Bank, Wins 2009 Sustainable Banking Award by Financial Times (FT) and International Finance Corporation (IFC); MicroEnsure and Root Capital Also Take Prizes

The Financial Times (FT) and the International Finance Corporation (IFC) announced the winners of the 2009 Sustainable Banking Awards. Triodos Bank of the Netherlands was named Sustainable Bank of the Year. Other microfinance programs were recognized, with MicroEnsure winning the award for Achievement in Basic Needs Financing, and Root Capital taking the Achievement in Banking at the Bottom of the Pyramid award.

by Sally Levy -

MICROCAPITAL STORY: International Finance Corporation (IFC) Invests over $514m in Micro Small and Medium Enterprise (MSME) Initiatives During 2008

The International Finance Corporation (IFC), a member of the World Bank Group, provides investment and advisory services to developing countries. Created in 1956, the IFC seeks to foster sustainable economic growth by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Within its Global Financial Markets sector, the IFC supports microfinance in order to promote successful and sustainable economies in low and middle income countries. The IFC provides direct and indirect investment and advisory services to the microfinance sector. Its focus is on creating and supporting commercially viable microfinance institutions (MFIs) that can attract private capital thereby responding to unmet demand for micro loans. Furthermore it seeks to demonstrate the business case for commercial microfinance and also promote it as an asset class to private institutional investors. During 2008 the IFC invested USD 513.8 million in micro small and medium enterprise (MSME) initiatives and provided USD 840,000 worth of advisory services. Following is detailed information about IFCs activities in the microfinance arena.

by Laura Anderson -

MICROCAPITAL STORY: Share Microfin Seeks to Raise USD 50 Million From International Finance Corporation (IFC) and Others

SHARE Microfin, a microfinance institution (MFI) based in Hyderabad, India, has announced that it intends to raise USD 50 million in equity funding.   According to the press release on VCCircle, the International Finance Corporation (IFC) is considering investing, and the MFI is currently in talks with other investors.  If the transaction proceeds it will be one of the biggest Indian microfinance transactions after SKS Microfinance‘s USD 75 million deal in November last year.  To read a MicroCapital story about that deal, click here.  With the funding, SHARE will expand in states such as Chhattisgarh, Uttar Pradesh, Madhya Pradesh, Uttranchal, and West Bengal.  No other information regarding the deal or potential investors was available at the time of this release.

by Zoran Stanisljevic -

MICROCAPITAL STORY: The International Finance Corporation (IFC) to invest $ 7.4 million (16.4 percent equity stake) in Microfinance Institution Caja Nuestra Gente of Peru

IFC, a member of the World Bank Group, has announced that it will invest USD 7.4 million (a 16.4 percent participation/stake) in Microlender Caja Nuestra Gente, a Microfinance Institution serving 170,000 clients microlending in Peru.  The IFC investment is also aimed to promote the growth and expansion of the Fundación BBVA para las Microfinanzas (owner of microlender, Caja Nuestra Gente) in Peru and Peruvian rural geographies.  The IFC provides investments and advisory services to build the private sector in developing countries.   Terms of the IFC’s investment are not provided.  According to the IFC, Caja Nuestra Gente loan portfolio is currently at USD 146 million (average loan of USD 1,506 dollars) and presently serves 170,000 borrowers from low-income economies.  Caja Nuestra Gente’s largest funder is Fundación BBVA para las Microfinanzas.