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].
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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.
KNOW A FUND: Microfinance Enhancement Facility, An Interview with Mark Berryman of the International Finance Corporation (IFC)
The Microfinance Enhancement Facility (MEF) is a microfinance investment vehicle that was established this year in response to the global credit crisis to refinance loans to well-established microfinance institutions (MFIs). MEF was founded by the International Finance Corporation (IFC) and KfW Entwicklungsbank. IFC, a member of the World Bank Group, made new investments totaling USD 16.2 billion in fiscal 2008. IFC’s microfinance investment activities reached nearly USD 1.3 billion in 2009 through over 160 projects in over 60 countries. Mark Berryman, of IFC’s Global Financial Markets Microfinance Group, recently spoke with MicroCapital:
MICROCAPITAL PAPER WRAP-UP: Microfinance Investment Vehicle (MIV) Performance and Prospects: Highlights from the CGAP 2009 MIV Benchmark Survey by CGAP
By CGAP, published by CGAP, September 2009, 6 pages, available at:
http://www2.cgap.org/gm/document-1.9.38570/CGAPBrief_MIV.pdf
Consultative Group to Assist the Poor (CGAP) has recently published a Benchmark Survey which illustrated that while MIVs grew by 31 percent in 2008, overall MIV performance may deteriorate in 2009 as increased credit risks persist. The survey also revealed MIVs efforts to include environment, social and governance considerations in their investment policies, due diligence, and monitoring.
The survey represents 103 MIVs (90 percent of total MIV assets within the MIV investment universe) with an estimated USD 6.6 billion in assets under management. Growth in MIV assets were supported by both public and private investors as retail investors continued to invest in MIVs as well.
MICROCAPITAL.ORG STORY: Lok Capital Invests US $1.5 M in Asirvad Microfinance Private Ltd of India
Venture fund Lok Capital LLC has closed a US $1.5 million investment deal with Indian Chennai-based Asirvad Microfinance Private Ltd, giving it a 24% stake in the company [1]. Launched in 2001 with support from the Rockefeller Foundation, Maritius-based Lok Capital Group comprises Lok Capital LLC, a venture fund which invests in commercially-oriented microfinance institutions in India; Lok Advisory Services (LAS), an Indian-based team which advices the Fund; and the Lok Foundation, a not-for-profit entity providing grant financing to MFIs that receive investments from Lok Capital LLC [2]. Lok Capital LLC investors include the IFC, CDC Group, KfW, FMO, Accion International, responsAbility and Développement international Desjardins. The fund has a total of US $22 million in committed capital and an average investment size ranges from US $0.5 million to US $2 million [3].
MICROCAPITAL.ORG STORY: Varying Views on Microfinance Institutions’ Expansion into Consumer Lending
A recent article from LiveMint.com reported that MFIs are now reaching beyond their traditional role of supplying enterprise loans and have begun consumer-lending initiatives. [1] These new schemes involve offering consumer credits by allowing the poor to buy products such as mobile phones and pay in installments. Since consumer lending does not directly serve to finance the poor’s income-generating endeavors [5], many have raised skepticism as to whether these strategies fall within scope of MFIs’ roles.
MICROFINANCE EVENT: European Microfinance Week, Presented by the European Microfinance Platform, November 24-26, 2009, Abbaye Neumünster, Luxembourg
European Microfinance Week, presented by the European Microfinance Platform, November 24-26, 2009, Abbaye Neumünster, Luxembourg
Costs: The fees for participants are as follows:
Registration Fee : 300€ (USD 430), Students (limited number) : 50€ (USD 72) . To register for European Microfinance Week 2009, please see here.
Summary of event: The theme for the 2009 meeting will be ‘Microfinance in a new financial era’ and will examine how the microfinance sector has reacted in the face of the global financial crisis. A combination of plenary, workshop and roundtable sessions will ensure participants make the most of their opportunity to stay informed, debate and contribute to discussions.
This 2009 final program summary is still pending. A draft of the program will be available shortly.
Please see here for 2008 conference for additional reference.
Previous 2008 Summit Speakers Included:
- J. Glisovic-Mezieres, CGAP Survey “CGAP MIV Benchmark 2008”
- Challenges in the distribution of Microfinance Investment Vehicles (Panel discussion)
- C. Speckhardt, responsAbility
- M. Schneider, Deutsche Bank
- E. de Lutzel, BNP Paribas
- R. Dominicé, Symbiotics Regulatory frameworks on foreign direct investments in microfinance
- de Ville, Chairman e-MFP The role of e-MFP in the global microfinance industry: challenges and opportunities
- Velasco, Co-Founder and Director, Pro Mujer International in Latin America Expectations of Latin American MFIs towards European Microfinance actors
- M. Toure, General Manager UM-Pamecas Senegal Expectations of African MFIs towards European Microfinance actors
- P. Sakellaris, Vice-President EIB Microfinance: fluctuat nec mergitur?
- R. Mersland, Consultant and Researcher Overview of the European Microfinance Week
- L. de Canniere, Incofin The role of private investors on social responsibility and social performance – the case of Incofin
- M. Adler, KfW Dimensions of responsible finance in microfinance practice
- Minh Huy Lai, Planet Finance Social Responsibility – the MFI inside perspective
- Koning, EU/ACP MF Program/CGAP Responsible Finance – the ‘What’, ‘Why’ and the ‘How’
- R. Annibale, Citigroup
- J.-P. Klumpp, Blue Orchard
- E. Schröder, Invest in Visions
- R. Dominicé, Symbiotcs
Online Registration: Please click here.
Important Dates: Tuesday, November 24 to Thursday November 26, 2009 at Abbaye Neumünster, Luxembourg
Submit Your Event: http://microfinanceassociation.ning.com/events
Event Type: Conference
Event Starts: November 24, 2009
Event Ends: November 26, 2009
Location: Abbaye Neumünster, Luxembourg
Contact information:
No specific name is provided. For Further information, please contact the following:
Christoph Pausch, Executive Secretary
Niamh Watters, Administrative Assistant
European Microfinance Platform (e-MFP)
21 Allée Scheffer
L-2520 Luxembourg
Tel. +352 26.27.13.55
Fax: +352.45.68.68.68
email: contact@e-mfp.eu
Submit Your Event: http://microfinanceassociation.ning.com/events
Event Type: Conference
Event Starts: November 24, 2009
Event Ends: November 26, 2009
Location:
CONFERENCE VENUE:
Centre Culturel de Rencontre
Abbaye de Neumünster
28, rue Münster
L-2160 Luxembourg
Téléphone : +352/ 26.20.52.1
Fax : +352/ 26.20.19.80
E-mail : contact@ccrn.lu
URL : www.ccrn.lu
Organized By: The European Microfinance Platform (e-MFP)
MICROCAPITAL.ORG STORY: BlueOrchard Private Equity Fund Invests Rs 500 million ($10.2 million) in Asmitha Microfin
BlueOrchard [1], a commercial microfinance investment intermediary based in Switzerland, has, through its Private Equity fund, invested Rs 500 million (the equivalent of over USD 10.2 million) in the equity of Asmitha Microfin Limited [2], a Microfinance Institution (MFI) based in Hyderabad, India. This was announced in a press release [3] available on the Asmitha website. Microcapital covered the relationship between these two organizations in October of 2008 when BlueOrchard made an initial equity investment in Asmitha of USD 5.3 million intended to “expand [the MFI’s] capital base and bolster its borrowing capacity” [4]. According to Dr. Vidya Sravanthi, Chairperson and Managing Director of Asmitha, the MFI hopes to use the newest investment to “[expand] its operations deeper into the Indian rural markets and offering its services to many more of the under-served poor in these regions” as well as move toward “growth targets” set by Blue Orchard [3].
MICROCAPITAL STORY: The European Bank for Reconstruction and Development (EBRD) Approves a $13m Credit Line for Azerdemiryolbank of Azerbaijan for Micro and Small Businesses under Its Microfinance Program
The European Bank for Reconstruction and Development (EBRD), a multilateral development institution that fosters private sector investment in 30 countries in Central Europe and Central Asia, will allocate a USD 13 million credit line to Azerbaijan’s Azerdemiryolbank, a private banking institution established in 1989. Azerdemiryolbank lends to other banks and small businesses. As stated in the bank’s press release, its assets totaled AZN 208.48 million (estimated USD 259.3 million) as of June 2009. In 2005, the EBRD gained a 25%+1 share of Azerdemiryolbank via an equity investment through an acquisition of newly issued shares of Azerdemiryolbank. The Board of Directors for the EBRD covered and approved the credit line for Azerdemiryolbank to facilitate credits to the country’s micro, small, and medium-sized business sectors. It stated that of the total, USD 3 million will be provided for SME lending and USD 10 million for lending to the micro sector. The credit agreement signing is still pending. Further details on how the credit plan will be implemented have yet to be disclosed.
CGAP Microfinance Dealbook: May 2009 Transactions
The CGAP Microfinance Dealbook publicizes microfinance capital market transactions in an effort to bring greater transparency to the industry. This information is made freely available as a public service. Parties to microfinance transactions are encouraged to submit their deals to this effort. The following deals were collected for May 2009:
MICROCAPITAL STORY: BlueOrchard Finance Disburses Over USD 28m to Microfinance Institutions in May
BlueOrchard Finance disbursed over USD 28 million in loans to 13 microfinance institutions (MFIs) in May. As reported to the CGAP Microfinance Dealbook, BlueOrchard Finance loaned USD 15.5 million through the Dexia Micro-Credit Fund and USD 1 million through the BBVA Codespa Microfinance Fund. BlueOrchard is also an advisor to the Microfinance Enhancement Facility, launched by the International Finance Corporation and KfW Entwicklungsbank, which disbursed its first four loans totaling USD 12 million.
MICROCAPITAL STORY: PlaNet Finance to Expand Microinsurance Program Across Middle East and North Africa
PlaNet Finance Group plans to expand its microinsurance schemes throughout the Middle East and North Africa (MENA), following the implementation of a microinsurance program in Egypt with First Microfinance Foundation (FMF) and global insurance company Allianz.
MICROFINANCE EVENT: Second Annual Microfinance Investment Summit, October 6-7, 2009, London, United Kingdom, Sponsored by Incofin
Microfinance Event: Second Annual Microfinance Investment Summit, October 6-7, 2009, London United Kingdom, Sponsored by Incofin
Second Annual Microfinance Investment Summit, October 6-7, 2009, London, United Kingdom, Sponsored by Incofin
See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events
PAPER WRAP-UP: Microfinance Funds Continue to Grow Despite the Crisis, by the Consultative Group to Assist the Poor (CGAP)
By Xavier Reille and Jasmina Glisovic-Mezieres, CGAP, with research assistance from Yannis Berthouzoz, Symbiotics, published by Consultative Group to Assist the Poor (CGAP), April 2009, CGAP Brief, 4 pages, available at:
http://www.cgap.org/gm/document-1.9.34437/CGAP%20Brief_MIV_FinancialCrisis.pdf
MICROCAPITAL STORY: Symbiotics Partners with Luxembourg Labelling Agency (LuxFLAG) and Spins Off Luxembourg Consulting Arm to Innpact Sàrl
Symbiotics SA, the Geneva-based investment advisor and information resource for the microfinance industry, has announced a collaboration with the Luxembourg Fund Labelling Agency (LuxFLAG). In an unrelated event, Symbiotics spins-off its Luxembourg consulting arm into an independent company, Innpact Sàrl.
CGAP Microfinance Dealbook: April 2009 Transactions
The CGAP Microfinance Dealbook publicizes microfinance capital market transactions in an effort to bring greater transparency to the industry. This information is made freely available as a public service. Parties to microfinance transactions are encouraged to submit their deals to this effort. The following deals were collected for April 2009:
CGAP Microfinance Dealbook: March 2009 Transactions
The CGAP Microfinance Dealbook publicizes microfinance capital market transactions in an effort to bring greater transparency to the industry. This information is made freely available as a public service. Parties to microfinance transactions are encouraged to submit their deals to this effort. The following deals were collected for March 2009:
MICROCAPITAL STORY: CreSud SpA Invests $900K in Comixmul of Honduras, UMF Arariwa of Peru, and Proempresa Edpyme of Peru
CreSud SpA, a socially responsible Italian private investment company, has reported three microfinance investments in the past three months to the CGAP Microfinance Dealbook, a monthly report on microfinance capital market transactions. In February 2009, CreSud SpA granted a loan of USD 250,000 to Comixmul of Honduras. In March 2009, CreSud SpA loaned USD 250,000 to Unidad Microfinanza Arariwa (UMF Arariwa) of Peru. In April 2009, CreSud SpA closed an equity investment of USD 400,000 in Proempresa Edpyme of Peru. CreSud SpA invests in companies with a minimum portfolio of USD 500,000 and three years of operational history. As of 2006, 88 percent of CreSud SpA’s investments were in Latin America and the Caribbean.