by Mary Fu -

MICROCAPITAL STORY: International Finance Corporation (IFC) Invests $50m in Consumer Finance Company Micro Provident Botswana (Letshego)

International Finance Corporation (IFC), a member of the World Bank Group, recently invested USD 20 million (SZL 147 million) in Micro Provident Botswana, a leading consumer finance company commonly known as Letshego. The investment will help the company expand its financial products and services to under-served segments of the market through local subsidiaries, and support sustainable economic development in Botswana, Swaziland and Zambia.

by Jake Keller -

MICROCAPITAL STORY: International Finance Corporation (IFC), a Member of the World Bank Group, Supports Creation of Banco Popular Covelo (Bancovelo), a Microfinance Institution in Honduras

In a press release, the International Finance Corporation (IFC), a member of the World Bank Group, announced that it has completed a package to provide up to USD 2 million (11.8 percent of total new capital) of financing and over USD 400,000 of advisory services to create Banco Popular Covelo (Bancovelo), a microfinance institution (MFI) in Honduras. The announcement of the package last year, enabled Bancovelo, the creation of a 2007 merger of Grupo Microfinanciero Covelo’s (GMC’s) Popular Covelo, and its two sister organizations, Fundacion Covelo and Popular Asociacion de Ahorro y Prestamo AAP, to receive its banking license in December of 2007. Other funders and advisers of the newly created bank include ACCION International, the Belgian Investment Company for Developing Countries (BIO), the Netherlands Development Finance Company (FMO) and Banco Centroamericano de Integracion Economica (CABEI), all with equal equity shares of 11.8 percent.

by Melissa Duscha -

MICROCAPITAL STORY: International Finance Corporation (IFC) Makes a $3m Equity Investment in Mongolian Microfinance Institution XacBank

The International Finance Corporation (IFC) has signed a partnership agreement with XacBank, one of Mongolia’s leading microfinance institutions. On January 16, 2008, the IFC invested USD 3 million for ten percent of XacBank’s outstanding shares and plans to invest a total of USD 15 million in the next three years. The IFC will have a representative seated on the Board of Directors to consult in the expansion of XacBank’s services throughout the region.

by Melissa Duscha -

MICROCAPITAL STORY: International Finance Corporation (IFC) signs a partnership agreement with WIZZIT Bank, introducing microfinance services to the poor through their mobile phones.

International Finance Corporation (IFC), a member of the World Bank Group, has signed a partnership agreement to take a 10 percent equity stake in WIZZIT Bank, a division of South African Bank of Athens Limited that specializes in banking services to the poor through mobile phones.

by Mary Fu -

MICROCAPITAL STORY: International Finance Corporation (IFC) and Wachovia Capital Markets, LLC Co-Arrange USD 40 Million for Mibanco in First International Syndication in Latin American Microfinance

International Finance Corporation (IFC), a member of the World Bank Group, and Wachovia Capital Markets, LLC, a subsidiary of Wachovia Corporation, have co-arranged a USD 40 million syndicated financing agreement for Mibanco (Banco de la Microempresa S.A.), a leading private commercial microfinance bank in Peru. As the first international syndication for a microfinance institution in Latin America, this transaction will allow Mibanco to offer longer loan maturities to its clients, as well as reach more rural customers.

by Amy Rennison -

MICROCAPITAL STORY: IFC and BP to Fund Expansion of Services by the Micro Finance Bank of Azerbaijan

The International Finance Corporation (IFC), a member of the World Bank Group, and BP, a British-based multinational oil supplier have agreed to provide additional funding to the Micro Finance Bank of Azerbaijan (MFBA), so it can improve access to finance for micro and small enterprises in western Azerbaijan by expanding its branch network to the towns of Mingechevir and Gazakh and enhancing services in the Ganja branch. The funding will consist of a USD 1 million grant from BP and USD 2.3 million of the IFC and the MFBA’s own investments. BP’s contribution will be used to support international credit experts and develop local loan officers and branch managers.

by Mary Fu -

MICROCAPITAL STORY: Jeffrey Sachs Outlines The Gate Lecture, Highlights Microfinance at Dubai International Financial Centre (DIFC)

Jeffrey Sachs, considered one of the most influential economists of his time by Time magazine, gave a speech entitled “The Great Convergence: The Shifting Balance of Power in the 21st Century”, which outlined The Gate Lecture, a presentation that he gave at Dubai International Financial Centre (DIFC).

by Amy Rennison -

MICROCAPITAL STORY: The IFC Agrees to Lend Sekerbank in Turkey $52m to Expand its Microfinance Activities

The International Finance Corporation (IFC), a member of the World Bank Group, has agreed to provide Sekerbank, one of Turkey’s leading private commercial banks, with a loan worth USD 52 Million (EUR 36 Million) over a seven-year period to help expand its microfinance and small and medium enterprise program. The loan has been designated to help the bank reach more than 10,000 micro and small entrepreneurs through its nationwide network of 230 branches across Anatolia.

by Elizabeth Nelson -

MICROCAPITAL STORY: MicroCred Holding Establishes Microfinance Institutions in China and Senegal, Backed by IFC, AIG and KfW Bankengruppe

MicroCred SA of France (MicroCred Holding) has established two new subsidiaries: MicroCred Nanchong in the southwestern Sichuan Province of China and MicroCred Senegal in Dakar.

by Elizabeth Nelson -

MICROCAPITAL STORY: International Finance Corporation (IFC) and Westpac Sponsor Workshop to Increase Microfinance to Women Entrepreneurs, Exim Bank and MI-BOSPO Attend

The International Finance Corporation (IFC), a member of the World Bank Group, and Westpac Banking Corporation, the fourth largest bank in Australia, are sponsoring a four-day workshop designed to encourage micro-lending to women business-owners in developing countries. International women bankers gathered in Sydney, Australia on October 2 to exchange global best practices on serving women entrepreneurs. Attendees included representatives from several of IFC’s client financial institutions: Exim Bank Limited (Tanzania), Access Bank (Nigeria), dfcu Limited (Uganda), Business Partners (South Africa), and MI-BOSPO (Bosnia).

by the MicroCapital Team -

MICROCAPITAL STORY: The International Finance Corporation (IFC) to Acquire Equity Stake in Chilean Factoring and Lending Company, Factorline

The International Finance Corporation (IFC), a member of the World Bank Group, has announced its intentions to acquire an equity stake in Factorline, the largest non-bank controlled factoring and lending firm in Chile. The IFC plans to invest up to USD 15 million to obtain an 18 percent stake in the Chilean company. This investment, along with a 2.2 billion peso (USD 4.28 million) increase in capital resulting from current shareholder activity, is expected to raise Factorline’s capital base to approximately USD 46 million by the end of September.