The Pakistan Poverty Alleviation Fund (PPAF), a Pakistani organization dedicated to assisting poor and rural communities in Pakistan, and Citi Foundation, a philanthropic outreach arm of Citigroup, announced they will hold for the third consecutive year an awards program dedicated to micro-entrepreneurship. The program, “Citi-PPAF Microentrepreneurship Awards Programme 2007,” will recognize the efforts made by micro-entrepreneurs to improve the quality of life for their families and their communities. It is designed to demonstrate the impact of microfinance on micro-entrepreneurs and poverty reduction.
Search Results for: Mexico
PAPER WRAP-UP: Microfinance: An Emerging Asset Class for Equity and Debt Investors, by Marco Coppoolse
By Marco Coppoolse. A White Paper Published by Microcapital in August 2007. 10 pages. Available at www.microcapital.org/downloads/whitepapers/Emerging.pdf
Mr Coppoolse supports the nascent microfinance asset class in two ways with his whitepaper, which was published by MicroCapital today. First he shows the strength and potential of the sector with some innovative research on nine of the leading MFIs (microfinance institutions) in the world. In the process he introduces a new performance indicator, “comparable return on equity” (CRoE) to be used alongside current indicators to help advise potential equity and debt investors on their microfinance investment decisions.
The conclusions are that the industry show high growth and high returns on a global basis, is still underleveraged, has high expense ratios, has good asset quality and has returns of a global nature that show no geographic bias.
PRESS RELEASE: 1,000th Microfinance Institution Joins MIX Market
MICROCAPITAL STORY: International Finance Corporation Befriends Mexican Microfinance Bank Banco Amigo with USD 7.1 Million Investment
The International Finance Corporation (IFC), a member of the World Bank Group dedicated to private sector development, has agreed to invest 77 million Mexican pesos (USD 7.1 million equivalent) in Mexican microfinance bank Banco Amigo. Formally known as Banco Comercial del Noreste, S.A., the bank is headquartered in Monterrey, Mexico, and opened to the public in May 2007. The bank received its banking license in November 2006. Prior to licensing, it operated as a non-bank financial institution since 2005. The common share equity investment represents up to an 18% stake in the bank.
MICROCAPITAL STORY: Pro Mujer Executive Director Carmen Velasco Discusses Microfinance at the White House Conference on the Americas
Pro Mujer, meaning “Pro Woman” in Spanish, is a Latin American development organization that facilitates the growth of sustainable microfinance institutions. Founded in Bolivia in 1990, it now also operates in Argentina, Mexico, Nicaragua, and Peru. Pro Mujer’s most recent combined financial statement, published in 2006, revealed assets in excess of USD 25 million and a loan portfolio over USD 19 million. With an estimated client base of over 200,000, Pro Mujer helps thousands of poor, uneducated women to escape poverty by encouraging entrepreneurial pursuits through financial services and training.
MICROCAPITAL STORY: Inter-American Development Bank’s Multilateral Investment Fund to Invest up to USD 17.2 million in new ProCredit Holding Banks to be Launched in Latin America
The Inter-American Development Bank’s (IDB) Multilateral Investment Fund (MIF) announces plans to invest up to USD 10 million in a project to establish new microfinance institutions (MFIs) in
MICROCAPITAL STORY: CGAP Publishes Focus Note on Compartamos Controversial IPO åö Discussed by Microfinance Practice Group
The biggest news in microfinance last month was the sale of equity of Compartamos, a Mexican microfinance institution (MFI), on stockmarkets in both the US and Mexico (see previous article on microcapital). The move stirred up much debate and drawing on this, the Consultative Group to Assist the Poor (CGAP) has recently published a focus note addressing the issues brought up by this development.
At the time of the deal, and ongoing since then, there has been much discussion over this issue, particularly in the Yahoo online ‘microfinance practice group’ (see previous article on microcapital) which is monitored by Mr. Chuck Waterfield who has more than 20 years of experience in the microfinance industry. Below we quote in full a recent comment posted to the group by Mr. Waterfield regarding the CGAP focus note. Microcapital will also be posting our own paper review of the focus note over the coming days.
MICROCAPITAL STORY: Who’s Who in Microfinance: ACCION President and CEO MarÌÐa Otero
MarÌÐa Otero joined ACCION International (ACCION), a US-based charity supporting microfinance, in 1986 as the Honduras lending program director. On January 1, 2000 Ms. Otero was ACCION President and CEO, replacing Michael Chu who had served in the position from 1994 to 1999. Ms. Otero also chairs ACCION Investments, an investment company for MFIs worth USD 20 million. Her leadership in microfinance extends to the boards of directors of Mibanco, BancoSol, and Compartamos, MFIs in Peru, Bolivia, and Mexico, respectively. Ms. Otero also serves on the boards of the Calvert Foundation, BRAC Holding in Bangladesh, and the Clinton Global Initiative. In 2004 Ms. Otero was nominated by President Bush to be a member of the United States Institute for Peace, where she has served since. She is also a coordinator of the Council of Microfinance Equity Funds, which includes 18 equity investment funds directed towards microfinance.
PRESS RELEASE: Global Microfinance Leader PlaNet Finance Opens First U.S. Office in New York City
NEW YORK, May 15 /PRNewswire-USNewswire/ — PlaNet Finance, an international non-profit organization dedicated to alleviating poverty throughout the world through the development of microfinance, announced today the opening of its first U.S. office, in New York City.
Since its founding nine years ago in Paris, PlaNet Finance has grown to work in 60 countries including Madagascar, Mexico, Argentina, Israel, Mexico, Brazil, Senegal and China.
‘Microfinance Practice’ Online Discussion Group Continues to Debate Compartamos’ Flotation: Some Clarification?
Banco Compartamos has been the subject of much discussion (see previous article on microcapital.org) since it listed shares on stock markets in the US and Mexico last month, not least in the online Yahoo discussion group ‘Microfinance Practice’ (click here to sign up). We have previously posted some of the debate from the group (see previous article on microcapital.org), particularly contributions from the group moderator, Mr. Chuck Waterfield, who has over 20 years of experience in the microfinance industry. Below is a further extract from some recent discussion in which Mr. Waterfield is trying to clarify what he understands as the financial implications of the deal: Continue reading “‘Microfinance Practice’ Online Discussion Group Continues to Debate Compartamos’ Flotation: Some Clarification?”
Breaking the Mould: Mexican Banco Compartamos Drags Microfinance into a Controversial New Era Despite the Kicking and Screaming
On Friday April 20th Banco Compartamos made an initial public offering (IPO) of 30% of the bank’s assets to stock markets in New York (80%) and Mexico (20%), worth USD 467mm according to the International Financial Corporation (IFC), the private sector arm of the World Bank. Banco Compartamos, the largest microfinance bank in Mexico, was founded in 1990 and was authorised on June 1st 2006 by the Mexican government to operate as a bank, until which point it had operated as a ‘specialised lending firm.’ The move sent shockwaves throughout the microfinance industry and has caused some vigorous debate.
Mexican Microfinance Institution Compartamos Makes Strong Market Debut
As we reported on Friday, Compartamos, a Mexican microbank, gave an initial public offering on Friday in both Mexico and the USA. Below is an excerpt from the Reuters news agency (which can be seen in full here);
“MEXICO CITY, April 20 (Reuters) – Shares of small Mexican bank Compartamos, which specializes in lending to mom-and-pop businesses, surged as much as 34 percent in their $407 million stock market debut on Friday.
Owners of Banco Compartamos, which means "let’s share" in Spanish, sold about 30 percent of the bank, spokeswoman Luisa del Castillo told Reuters.
More than 80 percent of the offer was placed in New York, with the rest on Mexico’s stock exchange, according to a company release. Mexican shares of Compartamos jumped as high as 53.53 pesos after the company priced the offer at 40 pesos per share. In afternoon trading the stock eased back slightly to 52 pesos.
Compartamos said it sold 111,572,532 shares, with an over allotment provision of 16,735,880 shares. It was unclear whether banks managing the offer exercised the over allotment, worth about $61 million.”
Mexican Microfinance Microbank Compartamos Set to Price IPO
Thanks to Gray Ghost Funds for passing along this April 19 except from Latin Finance Daily. Finally, the big news is public:
“Mexico’s Banco Compartamos is set to become the first Latin American microfinance institution to raise equity capital when it prices an IPO on the Mexican Bolsa today, Thursday. Carlos Danel, co-executive director at Compartamos tells LatinFinance that the offering of secondary shares will allow some shareholders to partially monetize their stakes in the bank. The offer, which comprises an international 144a Reg S tranche and a Mexican retail tranche, should price in the range of 30 to 40 pesos a share, and could raise as much as $400 million, according to a source close to the deal. Credit Suisse is global coordinator and bookrunner of the 144a Reg S tranche, pitched at qualified institutional buyers in the international market. Banamex and Banorte are handling sales to Mexican retail. Danel, who has been meeting with investors in Mexico
Pro Mujer Bolivia Receives 1 Million in Microfinance Loans from Hivos-Triodos and responsAbility Global Microfinance
Another story coming to us courtesy of the CGAP-MIX Capital Markets Update newsletter, Pro Mujer Bolivia received a USD 500,000 loan from Hivos-Triodos Fund and a USD 500, 000 loan from responsAbility Global Microfinance Fund. Pro Mujer is an international microfinance network which offers an integrated package of services including loans, savings, business training, healthcare and education to Latin America’s poorest female entrepreneurs. Established in Bolivia in 1990, Pro Mujer also operates in Argentina, Mexico, Nicaragua and Peru. Pro Mujer Bolivia is Pro Mujer’s pilot program, and has been the model on which all the other country programs have been built. As of December 2006 Pro Mujer Bolivia had 74,106 active borrowers. Its gross loan portfolio equaled USD 13,588,275, total assets equaled USD 18,320,623, total equity equaled USD 8,573,644 and its debt to equity ratio was 113.69%.
Who’s Who in Microfinance: MicroCred Holdings
MicroCred Holdings is a subsidiary of the French organization PlaNet Finance established in 2005 to create commercial microfinance opportunities. While MicroCred does not make any of its financial data available to the non share-holding public, Microcapital.org recently reported its USD 787,740 investment in MicroCred Mexico. MicroCred Holdings reports that, outside of MicroCred Mexico, it will only invest in preexisting commercial microfinance companies in Latin America, Asia, Africa and the MENA region.
Continue reading “Who’s Who in Microfinance: MicroCred Holdings”
Banco Bilbao Vizcaya Argentaria SA (BBVA) Invests USD 259.94 mn in Latin American Microfinance Institutions Caja Nor, Caja Sur, Corporacion Mundial de la Mujer and Medellin
Forbes Magazine reported a 200 million euro, approximately equal to USD 259.94 mn, investment in microfinance made by Banco Bilbao Vizcaya Argentaria SA (BBVA), a Spanish financial institution engaged in private, retail and wholesale banking and asset management. BBVA Chairman Francisco Gonzalez said in a press conference that the funds will be lent through local strategic partners such as Caja Nor and Caja Sur in Peru, Corporacion Mundial de la Mujer in Bogotá, and Medellin in Colombia. BBVA is also working to develop similar relationships with microfinance institutions in Mexico. According to Gonzalez, BBVA is also planning on extending their microfinance operations beyond Latin America, though there was no particular region or timeline mentioned.
2007 List of Microbank Ratings Published by the Rating Fund
The following institutions’ rating reports have been added to the Rating Fund Website since beginning of January 2007:
– Fondo 5 de Mayo, Mexico by Micorate åö June 2006
– UCEC Pala, Tchad by PlanetRating - October 2006
– SKDRDP, India by CRISIL - January 2007
– Mahasemam Trust , India by M-CRIL - December 2006
– ProMujer Mexico by Microrate - June 2006
– Insotec, Ecuador by Microfinanza - September 2006
– Fundamic Ecuador by PlanetRating - November 2006
– FDD, Dominican Republic by Fitch Ratings åö October 2006
– FDD, Dominican Republic by Microrateåö October 2006
– FADES Bolivia by PlanetRating - July 2006
– FADES Bolivia by Fitch Ratings- December 2006
– Fundacion Alternativa, Ecuador by Microfinanza - September 2006
– CACSMM, Peru by PlanetRating - December 2006
– Banco PyME BHD, Dominican Republic by Fitch Ratings åö December 2006
You can sign up to receive the above email alert about newly published ratings by sending an email to info@ratingfund.org. The Rating Fund is a fund that subsidies performance ratings of microbanks. The fund is managed by ADA in Luxembourg, a non-profit supporting microfinance worldwide.
MicroCred Inaugurates MicroCred Madagascar
Another story coming to us courtesy of the CGAP-MIX Capital Markets Update newsletter. MicroCred Group officially inaugurated MicroCred Madagascar in Antananarivo, Madagascar. According to their press release, MicroCred Madagascar has been operational since December 6th 2006, with the help of with the technical assistance of PlaNet Finance, an international non-governmental organization (NGO) that focuses on microfinance. MicroCred Madagascar provides financial services to Malagasy small and medium-sized businesses. Thus far, MicroCred Madagascar acquired a staff of 62, 30 credit officers and as of January 31st 2007, the institution had more than 519 clients and an active loan portfolio of USD 624,808.
Continue reading “MicroCred Inaugurates MicroCred Madagascar”