MICROCAPITAL BRIEF: Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO), Triodos Bank Launch Online “Responsible Finance” Magazine

Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO), a Dutch development bank, has partnered with Triodos Bank, a company with branches in the Netherlands, Belgium, Germany, the United Kingdom, and Spain, to start an online magazine Upsides (www.upsides.com) focusing on responsible finance and sustainable development in emerging markets.

MICROCAPITAL BRIEF: Opportunity International Receives Grant from Credit Suisse to Expand Electronic Financial Services, Train Personnel in Africa and Latin America

Opportunity International, a US-based nonprofit organization with a focus on microfinance, has received a three-year grant of unspecified size from Credit Suisse’s Microfinance Capacity Building Initiative, a Credit Suisse program that aims to contribute to the strengthening of microfinance institutions.

MICROCAPITAL BRIEF: EU Pledges Additional €5m to EBRD’s Small Business Programmes in Eastern Europe

The European Union (EU) has committed an additional EUR 5 million (USD 6.9 million) to the UK-based European Bank for Reconstruction and Development (EBRD) for its “TurnAround Management” (TAM) and “Business Advisory Service” (BAS) programs in the Eastern Partnership region [1].

MICROCAPITAL BRIEF: Microfinance Investor BlueOrchard Releases 2011 Social Performance Data

BlueOrchard, a commercial microfinance investment company based in Switzerland, has released its annual social performance report for 2011, which presents the social impact of its investments in approximately 75 microfinance institutions (MFIs).

MICROCAPITAL BRIEF: Triodos Invests in Microfinance Institutions DemirBank of Azerbaijan; First Microfinance Bank, Arvand of Tajikistan; Arnur Credit of Kazakhstan; Kompanion of Kyrgyzstan

Triodos Investment Management, a Netherlands-based manager of four microfinance investment funds, recently reported to MicroCapital that it has invested an undisclosed amount of funds in the following five microfinance institutions (MFIs): DemirBank of Azerbaijan; First Microfinance Bank – Tajikistan (FMFB-TJK) and Arvand, both of Tajikistan; Arnur Credit of Kazakhstan; and Kompanion Financial Group Microfinance Closed Joint Stock Company (Kompanion) of Kyrgyzstan [1].

MICROCAPITAL BRIEF: responsAbility Disburses $4m in Loans and Equity to Bai Tushum of Kyrgyz Republic; Arnur Credit, Bereke of Kazakhstan

responsAbility Social Investments AG (responsAbility), a Swiss asset management company that invests in microfinance institutions (MFIs) and microfinance investment vehicles (MIVs), recently reported to MicroCapital that it made investments totaling the equivalent of USD 4 million in Bai Tushum of the Kyrgyz Republic, Arnur Credit of Kazakhstan and Bereke of Kazakhstan.

MICROCAPITAL BRIEF: responsAbility Loans $8m to Kompanion of Kyrgyz Republic, Eskhata of Tajikistan, XacBank of Mongolia

responsAbility Social Investments AG (responsAbility), a Swiss asset management company that invests in microfinance institutions (MFIs) and microfinance investment vehicles (MIVs), recently reported to MicroCapital that it made debt investments totaling USD 8 million through MIVs it manages in the following institutions: USD 3 million to Kompanion Financial Group Microfinance Closed Joint Stock Company, an MFI in Kyrgyzstan; USD 2 million to Eskhata Bank, an institution in Tajikistan that lends to micro- and small businesses; and USD 3 million to XacBank, a community development MFI in Mongolia.

MICROCAPITAL BRIEF: Microfinance Expands in Rural Kyrgyzstan as Lending Shifts to Agriculture

Kyrgyzstan’s microcredit sector reportedly has been growing in recent years and extending to outlying regions. The growth of microcredit in rural regions has corresponded to an increase in agricultural business following the June 2010 ethnic riots in the country.

MICROCAPITAL BRIEF: Triodos Invests in Microfinance Institutions (MFIs) COMIXMUL of Honduras, CACMU of Ecuador, Sembrar Sartawi of Bolivia

Triodos Investment Management, a Netherlands-based manager of four microfinance investment funds, recently reported to MicroCapital that its funds have added three Latin American microfinance institutions (MFIs) to their portfolios; Cooperativa Mixta Mujeres Unidas Limitada (COMIXMUL) of Honduras; Cooperativa de Ahorro y Crédito Mujeres Unidas (CACMU) of Ecuador; and Institución Financiera de Desarrollo (IFD) Sembrar Sartawi of Bolivia.

MICROCAPITAL BRIEF: LuxFLAG Renews Label for MIVs From Absolute, BlueOrchard, EFSE, Finethic, Horus, KCD, ResponsAbility, Triodos, Wallberg

LuxFLAG, an organization established in 2006 to certify that microfinance investment vehicles (MIVs) actually invest in the sector, has renewed its annual label for 13 MIVs: Advans SA, BlueOrchard Microfinance Fund for US Investors, Dexia Micro-Credit Fund – BlueOrchard Debt Sub-Fund, Dual Return Fund – Vision Microfinance, European Fund for Southeast Europe, Finethic Microfinance,  KCD Mikrofinanzfonds I, KCD Mikrofinanzfonds II, responsAbility Global Microfinance Fund, responsAbility (Lux) Microfinance Leaders Fund, responsAbility (Lux) Mikrofinanz-Fonds, Triodos Microfinance Fund and Wallberg Global Microfinance Fund.

MICROCAPITAL BRIEF: Luxembourg Fund Labelling Agency for Microfinance Investment Vehicles, LuxFLAG, Announces 2010 Renewal, Adds BlueOrchard Fund

LuxFLAG, a microfinance institution vehicle (MIV) certification organization founded in 2006, has recertified eight MIVs while adding a ninth, BlueOrchard Fund – Microfinance Fund for US Investors. The label is applied to MIVs that invest directly or indirectly in the microfinance sector and are deemed reputable by LuxFLAG and receiving a basic level of financial supervision from their home country. The nine labeled firms manage a total of USD 2.24 billion. LuxFLAG reports an unspecified number of applicants for 2010 [1].

MICROCAPITAL BRIEF: International Finance Corporation and KfW Entwicklungsbank to Establish Microfinance Institutions (MFIs) in Zambia and Senegal in 2010

The International Finance Corporation (IFC), the investment arm of the World Bank, and KfW Entwicklungsbank (KfW), a state-owned development bank based in Germany, have announced that they will establish microfinance institutions (MFIs) in Zambia and Senegal in 2010.

MICROCAPITAL STORY: International Finance Corporation (IFC) Invests over $514m in Micro Small and Medium Enterprise (MSME) Initiatives During 2008

The International Finance Corporation (IFC), a member of the World Bank Group, provides investment and advisory services to developing countries. Created in 1956, the IFC seeks to foster sustainable economic growth by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Within its Global Financial Markets sector, the IFC supports microfinance in order to promote successful and sustainable economies in low and middle income countries. The IFC provides direct and indirect investment and advisory services to the microfinance sector. Its focus is on creating and supporting commercially viable microfinance institutions (MFIs) that can attract private capital thereby responding to unmet demand for micro loans. Furthermore it seeks to demonstrate the business case for commercial microfinance and also promote it as an asset class to private institutional investors. During 2008 the IFC invested USD 513.8 million in micro small and medium enterprise (MSME) initiatives and provided USD 840,000 worth of advisory services. Following is detailed information about IFCs activities in the microfinance arena.

MICROCAPITAL STORY: European Development Finance Institutions Part 2: KfW Entwicklungsbank Remains One of the Largest Global Investors in Microfinance

KfW Entwicklungsbank (KfW), a development bank that finances investments on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), has made significant contributions to the microfinance sector in recent years. Between January 2007 and April 2009, KfW has invested at least USD 250 million in microfinance services around the world, with its outstanding commitments to the sector likely making that number even higher.

MICROCAPITAL STORY: CDC Group Invests $30m in Microfinance Funds: India Financial Inclusion Fund and Catalyst Microfinance Investors

CDC Group, the British government-backed, private equity fund of funds with net assets of 4 billion USD, has invested into two microfinance funds to the tune of 15 million USD: the India Financial Inclusion Fund, managed by Caspian Capital Partners, and the Catalyst Microfinance Investors, managed by Catalyst Microfinance Investment Company. By investing in MFIs, the fund aims to provide low-income persons access to a wide range of financial services, including credit, savings, and fund transfers.

WHO’S WHO IN MICROFINANCE: Neptune Software Plc

Founded in 1999, Neptune Software Plc is a banking software provider.  The UK-based company has over 170 employees and offices in the UK, South Africa, Nigeria, Kenya, Uganda, and India.  Neptune partners with technology leaders such as BEA, Oracle, Sybase, IBM, and Business Objects.  While Neptune also provides financial services software to the broader financial services industry, the company has created a niche with microfinance institutions.  In Nigeria, Neptune has partnered with over 45 successful microfinance institutions.  In 2005, CGAP awarded the company the highest rating, 4 stars, for its operational excellence. 

MICROCAPITAL STORY: The African Development Bank (ADB) Approves US $900,000 Investment in Access Holding AG-Sponsored Access Bank Liberia (ABL) and $1m grant to Support Micro-enterprises in Liberia

In an effort to support post-conflict recovery in Liberia, the African Development Bank (ADB) approved an equity investment of USD 900,000 in Access Bank Liberia (ABL) and a USD 1 million grant from the ADB-managed Fund for African Private Sector Assistance (FAPA) to be used in the development of micro-enterprises in the region.