The MicroCred Group, an investment company with operations in France, Madagascar and China, has completed the sale of its Mexican operations to Fig Tree Ventures, including assets of EUR 4.1 million (equivalent to USD 5 million).
Search Results for: Mexico
MICROCAPITAL BRIEF: Brazilian Microfinance Sector Poised For Growth Following Annual 22 Percent Increase In Microborrowers since President da Silva’s Election
While the Brazilian microfinance market has seen significant growth since President Inacio Lula da Silva took power in 2002, a recent article estimates the market has reached two percent penetration [1]. Since his election, the number of microborrowers in Brazil has increased from 159,000 to 809,000 with a total of BRL 775.5 million (USD 426 million) in outstanding loans. Growth is expected to continue with increased interest in this market from established banking institutions such as Banco Santander, Unibanco and Banco Real.
MICROCAPITAL BRIEF: IGNIA Fund I Invests $4m in Mexican Mobile Services Company Finestrella
IGNIA Fund I, a social venture capital fund that aims to support the low-income population in Mexico and other regions of Latin America, recently invested USD 4 million in Finestrella, a Mexican company that offers postpaid mobile plans to consumers without the necessity of a credit history or upfront deposit.
MICROCAPITAL BRIEF: Pro Mujer Releases First Issue of Publication on Innovative Microfinance Services
Pro Mujer, an international microfinance organization serving 202,000 clients in Latin America, recently released the first issue of a publication that will evaluate field research on new microfinance services.
MICROCAPITAL BRIEF: MicroSave Releases Podcast on the 2007 Initial Public Offering of Mexican Microfinance Lender Compartamos
MicroSave, a technical assistance, training and technical resource center for microfinance organizations, has released a podcast discussing issues surrounding the controversially lucrative 2007, USD 458 million initial public offering of the Mexican microfinance bank, Compartamos.
MICROCAPITAL BRIEF: New York Times Article Addresses High Interest Rates and Mission Drift Among Microfinance Providers
A recent article featured in the New York Times newspaper entitled, “Banks Making Big Profits From Tiny Loans,” argues there is a growing mission drift among microfinance providers and discusses the efficacy of microloans and the need for more transparency in the industry.
MICROCAPITAL BRIEF: Compartamos Banco, Mexican Microfinance Bank, Targets Latin American Expansion by Acquisition
Compartamos Banco, a Mexican microfinance bank founded in 1990, is in the process of finding a Latin American microfinance lender to acquire. Fernando Alvarez Toca, the Chief Executive Officer of Compartamos Banco, stated that his company is planning to acquire a Latin American company in accordance with their plan for rapid expansion. Alvarez Toca names Colombia, Peru and Brazil as the primary countries they are investigating [1]. Compartamos Banco has been pursuing this avenue since November of 2009 [2].
MICROCAPITAL BRIEF: Mohammad Yunus, Founder of Grameen Bank, Calls Out Loan Shark Organizations
In an interview with Vikash Humar, Editor in Chief of Microfinance Focus, Mohammad Yunus, founder of Grameen Bank, blasted profit-seeking microfinance institutions (MFIs). He likened these institutions, which he defined as those who charge more than 15 percent plus the cost of funds, to the loan sharks that necessitated the foundation Grameen. While reluctant to name names, Mr Yunus offered Compartamos Banco, a Mexican microfinance bank founded in 1990, as an example of one of these firms. Mr Yunus additionally spoke out against IPOs by MFIs, such as Compartamos Banco and SKS Microfinance, a microfinance institution (MFI), launched in 1998, which caters to women clients in India.
MICROCAPITAL BRIEF: Credit Rating Agency Standard and Poor’s (S&P) Upgrades Mexican Microfinance Institution (MFI) Compartamos Banco
Compartamos Banco, a publicly-listed microfinance institution (MFI) based in Mexico, has been upgraded by credit rating agency Standard and Poor’s (S&P) to ‘mxAA’ and ‘mxA-1+’ for its long and short-term ratings, respectively. Compartamos Banco’s local bank bonds issued in August 2009, COMPART 09, were also upgraded to ‘mxAA’ and ‘mxA-1+’ with a ‘stable’ outlook.
MICROCAPITAL BRIEF: Initial Public Offering (IPO) of India-based Microfinance Institution (MFI) SKS Microfinance Raises Questions about Ethics within the Industry
With the initial public offering (IPO) of SKS Microfinance, an Indian microfinance institution (MFI), expected to raise USD 250 million to USD 350 million for the MFI and its private equity (PE) investors, questions have been raised about the ethics of MFI investors profiting millions of dollars when their customers are poor.
MICROCAPITAL BRIEF: Unitus, US Overseas Private Investment Corporation (OPIC) and Citi Microfinance Finalize $15m Credit Facility for Microfinance Institutions
Unitus Inc., an international nonprofit organization that supports microfinance institutions (MFIs); the US Overseas Private Investment Corporation (OPIC), a US government agency that invests in international development projects; and Citi Microfinance, Citi’s organization that aims to support MFIs, recently finalized a USD 15 million credit facility that aims to help foster growth among MFIs.
MICROCAPITAL BRIEF: Indian Microfinance Funds Seek to Expand Focus Beyond Microcredit
According to a recent article on VCCircle.com, an Indian online news platform, Indian microfinance fund managers are diversifying their investment base to include more areas of social investing, such as microinsurance, micro housing finance, healthcare, mobile payments and rural supply chains.
MICROCAPITAL BRIEF: Agence Française de Développement (AFD) Grants €1m to Microfinance Institution MicroCred Nigeria
Agence Française de Développement (AFD), France’s public development-finance institution, has granted EUR 1 million (USD 1.3 million) to MicroCred Nigeria to help build capacity in Nigeria’s microfinance sector.
MICROCAPITAL BRIEF: Wall Street Journal Article Examines “Profit Versus Purpose” Debate in Microfinance Industry
A recent article featured on the Wall Street Journal website entitled “Microfinance’s Midlife Crisis” examines the underpinnings of the debate in the microfinance industry about profit versus purpose.
MEET THE BOSS: Discussions on Microfinance Investment Vehicles (MIVs) and Impact Investing: Interview with Paul DiLeo, Co-Founder and Managing Partner of Grassroots Capital
Paul DiLeo, Managing Partner at Grassroots Capital, plays a role in attracting private capital to the company, creating investment vehicles to address market gaps and raising funding to support new initiatives. Mr. DiLeo launched and now co-manages the Global Microfinance Equity Fund and the Gray Ghost Microfinance Fund, which is a private, for-profit microfinance fund originally established to demonstrate the viability of microfinance investment. He obtained his bachelor’s degree from the University of Massachusetts (US), has a master’s degree from Boston University (US) and completed studies in business accounting and finance at New York University (US).
MEET THE BOSS: Discussions on Microfinance Investment Vehicles (MIVs): Interview with Gil Crawford, Chief Executive Officer of MicroVest Capital Management
Mr. Crawford is Chief Executive Officer of MicroVest Capital Management, responsible for the development, management and growth of MicroVest, including developing and implementing business development strategies and supervising investment deals. He led the launch of MicroVest I, LP, a commercial private equity vehicle focused on microfinance in North America. He has over 20 years of experience with microfinance institutions (MFIs) and capital markets and has worked in Latin America, Africa and Asia.
Previously, Mr. Crawford worked for the Latin American Financial Markets Division at the International Finance Corporation (IFC), created and ran Seed Capital Development Fund and was the Assistant Project Director for Africa Venture Capital Project. Mr. Crawford received his bank training at Chase Manhattan Bank in the mid 1980’s after working in Africa for the Red Cross and the US State Department. He graduated from Johns Hopkins University School of Advanced International Studies (SAIS) (US) in 1983 and Bates College (US) in 1980.
MICROCAPITAL BRIEF: Compartamos Banco, a Mexican Microfinance Bank, Reports 33% Increases in Net Income and Total Loan Portfolio for 2009
Compartamos Banco, a Mexican microfinance bank, reports that both its net income and its total loan portfolio increased by 33 percent in 2009. Fernando Alvarez Toca, the CEO of Compartamos Banco, reflected upon 2009 as “one of the most challenging years in Compartamos’ history” due to the global downturn [1].
MICROCAPITAL BRIEF: Mexican Microfinance Institution (MFI) Financiera Independencia Closes $41m Acquisition of Financiera Finsol
Financiera Independencia, a Mexican microfinance institution (MFI) that focuses on urban lending to individuals, has closed an MXP 530 million (USD 41 million) deal to acquire Financiera Finsol, a Mexican MFI that focuses on group lending in rural areas, and three related entities: Finsol Vida, an insurance broker; Finsol, a service company; and Instituto Finsol Brazil, an MFI in Brazil.