by the MicroCapital Team -

MICROCAPITAL STORY: Dun & Bradstreet to Run Nigeria’s First Credit Bureau, with Support of The International Finance Corporation, Accenture and Nine of Nigeria’s Leading Banks.

Nigeria is setting up its first credit bureau in an attempt to improve transparency, reduce fraud and enhance access to financial services to poorly served segments of the market. It will officially be called the Credit Reference Company (CRC).

Nine Nigerian banks have set up the bureau in partnership with Dun & Bradstreet, a global credit information provider, who have experience in running private credit bureaux in emerging markets. Accenture, a global management consulting, technology services and outsourcing company, and the International Finance Corporation (IFC), the private sector arm of the World Bank are supporting with technical and advisory services.

by the MicroCapital Team -

MICROFINANCE EVENT: Pacific Microfinance Week 2007

PACIFIC MICROFINANCE WEEK

AUGUST 27-31, 2007, PAPUA, NEW GUINEA

Private Enterprise Partnership for the Pacific (PEP-Pacific), a multi-donor initiative managed by the International Finance Corporation (IFC), is a lead sponsor for Pacific Microfinance Week, which will be taking place at the Crowne Plaza Hotel on August 27-31 in Papua, New Guinea. The week long conference will provide a platform for the exchange of information on the provision of inclusive and sustainable financial services, including remittances, payment services and insurance, as well as savings and credit in the Pacific Islands.

by Steven Craig -

MICROCAPITAL STORY: International Finance Corporation, Consultative Group to Assist the Poor and VISA International Organize Microfinance Technology Conference

NEXT GENERATION ACCESS TO FINANCE: GAINING SCALE AND REDUCING COSTS WITH TECHNOLOGY AND CREDIT SCORING – SEPTEMBER 17-19, 2007, WASHINGTON, D.C., USA

The International Finance Corporation (IFC), a member of the World Bank Group dedicated to private sector development and the Consultative Group to Assist the Poor (CGAP), a consortium of public and private development agencies working together to expand access to financial services for the poor in developing countries, are working together with VISA International, a global card services and payment processing provider, to organize a microfinance technology conference entitled, “Next Generation Access to Finance: Gaining Scale and Reducing Costs with Technology and Credit Scoring.”

by the MicroCapital Team -

MICROCAPITAL STORY: Access Microfinance Holding AG Enters Tanzanian Microfinance Market

Access Microfinance Holding AG is a holding company specializing in microfinance investment based in Berlin, Germany. AccessHolding was established in 2006 by an international group of private and public investors and currently invests in microfinance institutions in the developing world. Over time, AccessHolding hopes to become a controlling parent company of a network of banks.

It now announces its entrance into the Tanzanian microfinance sphere with the creation of Access Bank Tanzania Ltd (ABT). This new bank will start with 9 branches and will provide loans to medium, small, and micro-enterprises throughout the country. David James, the general manager of ABT, said the bank will support its investors through a combination of growth capital, holding services and on-site technical assistance rendered by its partner, LFS Financial Systems, a German consulting and management company. This new bank is part of a wave of new investments on the part of AccessHolding, which is currently investing in microfinance banks in Azerbaijan, Madagascar and Mozambique. As well, it is preparing a series of new investments in Sub-Saharan Africa and other developing or transition regions for implementation in the 2007/2008 financial year, according to an article in The East African on nationmedia.com.

by Steven Craig -

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.

by the MicroCapital Team -

MICROCAPITAL STORY: The International Finance Coporation, Netherlands Development Finance Company, and Deutsche Bank Invest Jointly in Indian Microfinance Private Equity Company Aavishkaar Goodwell

Aavishkaar Goodwell (AGI), a for-profit business development company that provides equity finance to microfinance organizations in India, is receiving USD 8 million in investments from the Netherlands Development Company (FMO), together with IFC, a member of the World Bank Group that provides financial products to build the private sector in developing countries, and global investment institution Deutsche Bank, to support the company in expanding its outreach.

by the MicroCapital Team -

MICROCAPITAL STORY: African Development Bank Approves €600,000 Equity Investment into Access Bank of Tanzania

The African Development Bank (AfDB) has approved a private sector equity investment of €600,000 in the Access Bank of Tanzania (ABT), as part of a project with an objective “to provide clients in the lower income group with a broad range of financial services,” according to AfDB resident representative in Tanzania, Dr. Sipho Moyo. According to an AfDB press release, the core target group will be growth oriented in the upper micro and lower SME (small and medium enterprise) segment.

by the MicroCapital Team -

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.

Continue reading “Breaking the Mould: Mexican Banco Compartamos Drags Microfinance into a Controversial New Era Despite the Kicking and Screaming”

by the MicroCapital Team -

International Finance Corporation Provides USD 3.7 mn Loan with Advisory Services to Pakistan’s Tameer Microfinance Bank

International Finance Corporation (IFC) officially agreed to provide a substantial loan and advisory services to Tameer Microfinance Bank (Tameer) of Pakistan in their expansion effort. The long-term loan, disbursed in December 2006, adds up to USD 3.7 mn, is meant to support Tameer’s rapidly growing loan portfolio. The partnership will be supervised by the Private Enterprise Partnership for the Middle East and North Africa, IFC’s advisory services facility for the region. They will help Tameer find commercially viable ways to reach its client base and assess the demand for branchless banking in rural Pakistan.

Continue reading “International Finance Corporation Provides USD 3.7 mn Loan with Advisory Services to Pakistan’s Tameer Microfinance Bank”

by the MicroCapital Team -

International Finance Corporation and Andean Development Corporation Join MicroCred Holdings, PlaNet Finance Mexico and Protama as Investors in the Mexican Microfinance Institution MicroCred Mexico

According to an official press release, the International Finance Corporation (IFC), a private sector arm of the World Bank that invests in and advises financially and environmentally sustainable development projects, and the Andean Development Corporation (CAF), a multilateral financial institution, have confirmed their investment in MicroCred Mexico, a microfinance institution created by MicroCred Holdings, a microfinance investment group. IFC will take a 15 percent stake in the capital of Microcred Mexico and CAF will have a 9 percent stake. Other current investors include Microcred S.A., its parent organization, PlaNet Finance Mexico, an international network of non governmental organizations (NGOs) working to develop the microfinance industry, and the Mexican private equity funds, Protama.

Continue reading “International Finance Corporation and Andean Development Corporation Join MicroCred Holdings, PlaNet Finance Mexico and Protama as Investors in the Mexican Microfinance Institution MicroCred Mexico”

by the MicroCapital Team -

International Finance Corporation Deliberates Post-Crisis Microfinance with Lebanese Institutions

The International Finance Corporation, (the private sector arm of the World Bank Group), organized a roundtable entitled “Reconstruction Microfinance in a Post-Crisis Environment” to share necessary international practices with Lebanese microfinance institutions and banks. In addition, the IFC also invited international experts and practitioners with aptitude in microfinance operations in conflict-areas and natural disaster zones (such as Afghanistan, Bosnia and Herzegovina, Iraq, Pakistan, and the West Bank and Gaza) to participate in the roundtable discussion. Together with Lebanese microfinance providers, the representatives from these various institutions openly debated different approaches on how to better address the post-crisis (2006 Israel-Lebanon conflict) recovery efforts. Overall, participates agreed that steps such as maintaining good portfolio quality, planning for cost recovery, and collaboration among various stakeholders to support the growth of microfinance in Lebanon should be followed/implemented.

Continue reading “International Finance Corporation Deliberates Post-Crisis Microfinance with Lebanese Institutions”

by the MicroCapital Team -

World Council of Credit Unions (WOCCU) Receives USD 27.7 mn Funding from Microfinance Investment Support Facility of Afghanistan (MISFA) and United States Agency for International Development (USAID)

WOCCU has received USD 19.4 mn and USD 8.3 mn funding from USAID and MISFA respectively to expand its presence in Afghanistan.

The USAID funding will be used to set up 20 credit unions and points of service, designated as Investment and Finance Cooperatives (IFCs) in Northern, Southern and Eastern Afghanistan. This funding is part of USAID’s USD 80 mn support to the Academy for Educational Development’s (AED) Agricultural, Rural Investment and Enterprise Strengthening Program (ARIES). This ARIES program aims to convert back into productive cultivation those farmers who have lapsed into opium cultivation in this conflict-ravaged region. WOCCU, which is associated with AED, will receive USD 15.4 mn as a grant and the remaining USD 4 mn will be in the form of a convertible subordinated debt to equity investment in the project IFCs.

The USD 8.3 mn from MISFA will be specifically used to set up 5 IFCs in Northern Afghanistan. WOCCU started its Afghanistan operations in collaboration with MISFA in 2004 with a USD 1.1 mn program. By the end of 2005, nearly 3000 Afghans are members of two credit unions in Mazhar-e-Sharif and Sheberkhan, both in Northern Afghanistan. The success of these two operations seems to have been the driver for additional funding not just from MISFA but also from USAID.
Continue reading “World Council of Credit Unions (WOCCU) Receives USD 27.7 mn Funding from Microfinance Investment Support Facility of Afghanistan (MISFA) and United States Agency for International Development (USAID)”

by the MicroCapital Team -

Ethical Corporation Hosts Sustainable Finance Summit in London, November 28th and 29th

Interest in sustainable finance has been growing appreciably in recent years: in 2003 the initial draft of the Equator Principles, a banking industry framework for addressing environmental and social risks in project financing, was launched by the World Bank Group’s International Finance Corporation (IFC) and in 2005 the United Nations initiated the development of the Principles for Responsible Investment. With this recent increased interest in socially responsible investment in mind, Ethical Corporation is hosting the Sustainable Finance Summit in London, November 28th and 29th. As stated on the press release regarding the Summit, “The conference aims to establish the relative importance of sustainable and responsible policy and strategy in financial institutions”. The event program can be accessed here.

Continue reading “Ethical Corporation Hosts Sustainable Finance Summit in London, November 28th and 29th”

by the MicroCapital Team -

MicroCred Announces Launch of Madagascar Microfinance Operations

Microcred, an investment company founded by Planet Finance, International Finance Corporation, Societe Generale and Axa Belgium has announced the launch of its country operations in Madagascar.

According to their press release, MicroCred Madagascar aims to become a leader in providing financial services to Malagasy small businesses. The MicroCred CEO, Arnaud Ventura said, "Less than 7% of the Malagasy population has access to the banking system, and less than 200,000 people out of the 18.6 million inhabitants of the island have access to microfinance banking institutions."

As we had reported in July 2006, IFC and the International Development Association(IDA) had established a USD 25mn loan facility with the local arms of Societe Generale and Credit Lyonnais wherein IFC and IDA would guarantee half the amount(USD 12.5mn). Assuming the joint risk-sharing structure also applies to MicroCred, along with Societe Generale’s local presence, provides backing for MicroCred in Madagascar.

As reported in MicroCapital Monitor’s November Edition, Access holding, another newly launched Microfinance company has also invested in Madagascar through an equity stake in the to-be-founded AccessBanque Madagascar.

Continue reading “MicroCred Announces Launch of Madagascar Microfinance Operations”

by the MicroCapital Team -

European Microfinance Company Access Holding AG Announces Intent to Go the ProCredit Way. Various Development Banks and Omidyar Tufts Microfinance Fund Purchase Equity in the Newly Founded Company.

In a press release, recently formed company Access Holding AG, announced that prominent microfinance investors, KfW, the European Investment Bank (EIB), the International Finance Corporation (IFC) and the Omidyar-Tufts Microfinance fund have each 19.2% of the company’s equity. The founding company LFS Financial Systems GmBH together with its employee investment company, MicroAssets, hold the remaining 23.2% equity.

The press release informs, “Access Holding’s strategic objective is to build up a network of commercial microfinance banks, with common principles and under a common management.” The IFC investment summary says, “Over time, AccessHolding aims to transform into a controlling parent company of a global network of microfinance banks with a common brand identity”.

This proclaimed strategy seems to be very similar to what ProCredit Holding has been executing to considerable attention from the capital markets. Procredit Holding AG, has, over the past decade or so, with the aid of funding from multilateral institutions, scaled up into a network of nineteen microbanks with a USD 2.3 billion loan portfolio spread across 670,000 loans of which 95 percent are USD 12,500 or smaller. ProCredit microbanks are spread across Eastern Europe, Latin America, and Africa. Recently, ProCredit was in the news as TIAA-CREF, one of the largest pension funds in the United States purchased USD 43 million of preference equity in the company.

Continue reading “European Microfinance Company Access Holding AG Announces Intent to Go the ProCredit Way. Various Development Banks and Omidyar Tufts Microfinance Fund Purchase Equity in the Newly Founded Company.”

by the MicroCapital Team -

Mexican Microfinance Bank Receives $10 Million Loan Pledge from International Finance Corporation

Mexico-based Banco Compartamos will receive loans worth $10 million from the International Finance Corporation (IFC). The funds are to be disbursed over a seven year period. This is the first of three loan pledges to Banco Compartamos; IFC has not yet announced the next two.

Continue reading “Mexican Microfinance Bank Receives $10 Million Loan Pledge from International Finance Corporation”