by Julia Korn -

MICROCAPITAL BRIEF: Asian Development Bank (ADB) Provides $3m Grant to Small Industries Development Bank of India for Women Who Have Outgrown Microfinance, Are Caught in the “Missing Middle”

The Asian Development Bank (ADB), a regional development bank headquartered in Manila, the Philippines, which in 2007 approved USD 10.1 billion in loans [1], is providing a USD 3 million grant to the Small Industries Development Bank of India (SIDBI) to offer services to female entrepreneurs in India. The grant will target women who have “outgrown traditional microfinance support, but who are unable to access more conventional bank financing – the so called ‘missing middle’ group of the small enterprise sector” [3].

by Matthew Castner -

MICROCAPITAL BRIEF: The Associated Chambers of Commerce and Industry of India (ASSOCHAM) Calls for Government-Owned Microfinance Institutions (MFIs)

The Associated Chambers of Commerce and Industry of India (ASSOCHAM), an organization representing approximately 100,000 Indian companies, plans to call attention to lacking rural microfinance service by asking the national government to operate microfinance institutions (MFIs) in those areas. ASSOCHAM reportedly argues that those MFIs currently serving rural India charge prohibitive annual interest rates of between 36 and 60 percent [1].

by Stefanie Rubin -

MICROCAPITAL BRIEF: SHARE Microfin Ltd of India Raises $11m Through Non-Convertible Debentures (NCD) with Assistance from Standard Chartered

SHARE Microfin Ltd, an Indian microfinance institution (MFI) with 2.4 million clients and a gross loan portfolio of USD 353 million, recently raised INR 500 million (USD 11 million) through a private placement of two-year, non-convertible debentures (NCD).

by Stefanie Rubin -

MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Seeks Nominations for Social Performance Reporting Awards 2010

The nonprofit Microfinance Information Exchange (MIX) is seeking nominations for the Social Performance Reporting Awards, established in 2009 by CGAP (Consultative Group to Assist the Poor), the Ford Foundation, the Michael and Susan Dell Foundation and the Social Performance Task Force (SPTF), a group aimed at defining social performance for microfinance institutions (MFIs).

by Stefanie Rubin -

MICROCAPITAL BRIEF: Aavishkaar Goodwell India Microfinance Development Company Ltd Invests USD 450,000 in Belstar Investment and Finance Ltd

Aavishkaar Goodwell India Microfinance Development Company Ltd, an Indian-Dutch joint venture company that provides equity finance for microfinance institutions (MFIs), recently invested USD 450,000 in Belstar Investment and Finance Ltd, a non-bank finance company (NBFC) based in Bangalore, India.

by Stefanie Rubin -

MICROCAPITAL BRIEF: Current and Former CEOs of ACCION International Discuss Role of Microfinance and Capital Markets in Fighting Poverty

In response to the upcoming IPO (initial public offering) of SKS Microfinance, an Indian microfinance institution (MFI) with more than 3.5 million borrowers, Mr Michael Schlein, President and CEO of ACCION International, and Mr Michael Chu, senior lecturer at Harvard Business School and former CEO of ACCION, discuss the role of microfinance and the capital markets in fighting poverty in a Forbes magazine article.

by Stefanie Rubin -

MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) Releases 2009 Benchmarking Report on Eastern Europe and Central Asia in Russian

The nonprofit Microfinance Information Exchange (MIX) recently released the 2009 Eastern Europe and Central Asia Microfinance Analysis and Benchmarking Report in Russian.

by Christopher Maggio -

MICROCAPITAL BRIEF: International Finance Corporation (IFC) Provides $15m Equity Investment to Lok II, an $80m Microfinance Fund that will Invest in Microfinance Institutions (MFIs) in India

The International Finance Corporation (IFC), the investment arm of the World Bank, recently announced that it will provide an equity investment of USD 15 million in Lok II, a venture capital fund investing primarily in microfinance.

by Christopher Maggio -

MICROFINANCE PAPER WRAP-UP: Outlook for Remittance Flows 2010-2011, by Dilip Ratha, Sanket Mohapatra, and Ani Silwal

Written by Dilip Ratha, Sanket Mohapatra, and Ani Silwal, published by The Migration and Remittances Team of the World Bank’s Development Prospects Group (DECPG) in April 2010, 18 pages, available at: http://siteresources.worldbank.org/INTPROSPECTS/Resources/334934-1110315015165/MigrationAndDevelopmentBrief12.pdf

The Migration and Remittances Team of the World Bank’s Development Prospects Group (DECPG), an organization providing information and analysis on global economic trends, has published a paper entitled “Outlook for Remittance Flows 2010-2011.”

by Stefanie Rubin -

MICROCAPITAL BRIEF: International Finance Corporation (IFC) to Invest $15m in Aavishkaar Goodwell Fund for Microfinance

Aavishkaar Goodwell India Microfinance Development Company Ltd, a microfinance focused private equity firm, has secured a USD 15 million commitment from the International Finance Corporation (IFC), the private investment arm of the World Bank, for its second fund.

by Christine Chang -

MICROCAPITAL BRIEF: Dutch Investor in Microfinance Institutions (MFIs) Oikocredit Pays USD 675,000 for 10-Percent Stake in India-based ESAF Microfinance and Investment

Oikocredit, a Dutch investor in microfinance institutions (MFIs), has paid INR 30 million (USD 675,000) for a 10-percent stake in Kerala-based ESAF (Evangelical Social Action Forum) Microfinance and Investment Private Limited (ESAF). The investment was made through a wholly-owned Indian subsidiary of Oikocredit, Manaveeya Holdings and Investments.

by Stefanie Rubin -

MICROCAPITAL BRIEF: Microfinance Information Exchange (MIX) and CGAP (Consultative Group to Assist the Poor) Criticize Muhammad Yunus’ Method of Judging Microfinance Institutions’ (MFIs’) Interest Rates

Microfinance Information Exchange (MIX) Lead Researcher, Mr Adrian Gonzalez, has published a report on MIX titled, “Analyzing Microcredit Interest Rates: A Review of the Methodology Proposed by Mohammed Yunus.”

by Christopher Maggio -

MICROCAPITAL BRIEF: Grameen Foundation to Upgrade Mifos, an Open Source Microfinance Institution (MFI) Management Software with Grants of $500,000 from Cisco Foundation and $1.23m from MasterCard Foundation

The Grameen Foundation, an independent non-profit organization, has announced that it will add functionality to Mifos, a microfinance institution (MFI) management software package that is open source, meaning that it is free software that can be changed by users.

by Christine Chang -

MICROCAPITAL BRIEF: Investment Firms Matrix Partners India, Hivos-Triodos Fonds and Lok Capital LLC Invest $26.5m in Indian BASIX Microfinance Institution Bhartiya Samruddhi Finance Limited (BSFL)

Matrix Partners India, a Mumbai-based investment firm, is investing INR 1 billion (USD 22.5 million) in Bhartiya Samruddhi Finance Limited (BSFL), an Indian microfinance institution that is a member of the BASIX (Bhartiya Samruddhi Investment & Consulting Service) Group. Two existing investors, Europe-based Hivos-Triodos Fonds and dedicated microfinance institution (MFI) investor Lok Capital LLC, are contributing a further INR 127 million (USD 2.9 million) and INR 55 million (USD 1.2 million) respectively.