Lok Capital LLC, a microfinance venture capital fund, based out of Delhi, India, has raised US$ 12m towards seed capital and equity investments in start up microfinance institutions. The investors in this fund include – Commonwealth Development Corporation (CDC), International Finance Corporation (IFC), Netherlands Development Finance Company (FMO) and KfW- Entwicklungsbank of Germany.
Continue reading “Lok Capital, a microfinance venture capital fund in India, raises US$ 12m from International Public Institutional Investors”Search Results for: ifc
International Finance Corporation Makes $5 Million Debt Investment in Financiera Nicaraguense de Desarrollo SA, a Nicaraguan Microfinance Institution
The International Finance Corporation (IFC) will loan $5 million to Financiera Nicaraguense de Desarrollo S.A. (FINDESA), a Nicaraguan microfinance institution (MFI). The two-part financing åö a senior loan of $2 million and a subordinated convertible loan of $3 million åö will aid FINDESA’s transformation to a commercial bank.
International Finance Corporation & International Development Association Establish $25 Million Loan Facility with Société Générale & Credit Lyonnais for Microfinance Investment in Madagascar
The World Bank’s International Finance Corporation (IFC) and International Development Association (IDA) will assume half the portfolio risk in a USD $25 million deal with the local arms of two French banks, Société Générale and Credit Lyonnais, to provide loans to small and medium size enterprises in Madagascar. The IFC will guarantee $6 million while the Government of Madagascar will guarantee the remaining $6.5 million, which it will receive in loans from the IDA.
International Finance Corporation Makes Its Largest Ever Investment in the Middle East and North Africa with $100 Million Loan to BankMuscat of Oman
BankMuscat SAOG of Oman will receive an International Finance Corporation (IFC) long-term subordinated loan of $100 million, the largest investment by the IFC in the Middle East and North Africa region. The loan will bolster BankMuscat’s long-term mortgage financing as well as its small- and medium- enterprise (SME) portfolio.
International Finance Corporation Takes Equity Stake and Extends $1 Million Trade Finance Line to Azerigazbank for Microfinance Investment in Azerbaijan
The International Finance Corporation (IFC) will acquire up to a 17.5% stake in Azerigazbank (AGBank) as well as extend a $1 million trade finance line to the Azeri bank.
International Finance Corporation Provides $50 million to Colombia-based Non-Profit Organization Fundación Social to Increase Its Microfinance Fund
The International Finance Corporation (IFC), private sector arm of the World Bank Group, is providing $50 million to Fundación Social, a non-profit organization based in Colombia, with the purpose of expanding its small and medium-sized business client base. More specifically, part of the IFC’s financing aims to help Fundación Social increase its microfinance portfolio to more than $37 million, aspiring to reach over 53,000 clients over the next five years. Information on how the money is to be invested in the Fundación Social Group is not currently available.
International Finance Corporation Enters Papua New Guinea’s Financial Sector With Investment in PNG Microfinance
The International Finance Corporation (IFC) will gain a 19% share in PNG Microfinance with a $1 million equity investment, its first investment in
International Finance Corporation to Write its Largest Local Currency Loan Ever of 1.3 Trillion (over 141 million USD) to PT Bank Danamon of Indonesia
The International Finance Corporation (IFC) announced that it will provide a local currency loan of 1.3 trillion rupiah, equivalent to over 141 million US dollars, to PT Bank Danamon Indonesia Tbk (Bank Danamon). According to the IFC press release found on noticias.info, “this loan will be IFC’s largest local currency facility offered to a client globally and the largest single transaction to date in Indonesia which will be mostly oriented by Bank Danamon towards SME {small and medium enterprise} and mass market businesses.” The loan structure provides long-term credit in the local currency to Bank Danamon, facilitating its lending to entrepreneurs and SME’s. In addition, the big loan will aid the development of infrastructure, manufacturing, and other capital-intensive sectors.
Continue reading “International Finance Corporation to Write its Largest Local Currency Loan Ever of 1.3 Trillion (over 141 million USD) to PT Bank Danamon of Indonesia”Microfinance Bank of Azerbaijan Partners with Blue Orchard Microfinance in US$120 Million Bond Issue
The Microfinance Bank of Azerbaijan (MFBA) is a full scale commercial bank and the leading microfinance provider in Azerbaijan. The bank has disbursed over 16,000 loans totaling over US$52 million. Its major shareholders include the European Bank for Reconstruction & Development, The International Finance Corporation, KfW Development Bank, LFS Financial Systems GmbH, and the Black Sea Trade and Development Bank. The Microfinance Bank of Azerbaijan does not report to the Microfinance Information Exchange (MIX) and no further information on its performance is publicly available.
In its latest deal, MFBA received a US$4 million loan from Swiss group, Blue Orchard Microfinance SA. The loan was financed by Blue Orchard’s latest bond issue of US$120 million, funded by private commercial investors worldwide. In addition to MFBA, 21 other microfinance institutions will benefit from funding financed by the bond issue. This marks the first time that these institutions have had formal access to the European capital markets.
Additional Resources
1) Microfinance Bank of Azerbaijan
2) Blue Orchard Microfinance SA
3) The MIXMarket
International Finance Corporation Continues Support of Microfinance with US$17 Million in New Investments in Fundación WWB Colombia and Morocco’s FONDEP Micro-Crédit
MicroCapital reported on the International Finance Corporation (IFC) and Citigroup’s joint investment in Uganda Microfinance Limited at the end of March. In addition to contributing to the growing trend of cooperation between microfinance institutions and commercial banks, the IFC funded two additional deals during the first quarter of 2006 totaling nearly US$17 million.
Continue reading “International Finance Corporation Continues Support of Microfinance with US$17 Million in New Investments in Fundación WWB Colombia and Morocco’s FONDEP Micro-Crédit”
International Finance Corporation and Citigroup Extend Credit to Uganda Microfinance
The International Finance Corporation (IFC) and Citigroup (NYSE: C) have developed a credit scheme that will bolster the development of Uganda Microfinance Limited. The IFC has issued a $1,000,000 line of credit to Uganda Microfinance to strengthen its balance sheet. Uganda Microfinance will then be able to borrow local currency on commercial terms from the Citigroup subsidiary, Citibank Uganda Limited. The deal is further indication that major commercial banks are taking a growing interest in microfinance, both on wholesale and retail terms.
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German Development Bank KFW makes $5 Million Microfinance Investment in Microfinance Bank of Azerbaijan
Kfw, a German development bank established in 1948 to support small and medium-sized enterprises (SMEs) and start-ups is providing a $5 million loan to the Microfinance Bank of Azerbaijan (MFBA). Kfw, one of the ten largest banks in Germany and a historically strong partner to the microfinance industry, had å¥341 billion in total assets at the close of 2005. Recently, the group participated in a å¥30 million equity financing with the World Bank that established the Southeast Europe Microfinance Fund. See the January 10, 2006 blog for more information on this deal.
MFBA was established in 2002 by four shareholders: European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), Black Sea Trade and Development Bank (BSTDB) and LFS Financial Systems GmbH (LFS). In December of 2004, KfW became the fifth shareholder. Based upon information released earlier this month, MFBA enjoyed a strong financial performance in 2005. Since inception, the organization has disbursed 18,825 loans, with 9,608 loans disbursed in 2005 alone. Also, MFBA’s credit portfolio nearly tripled in 2005 and reached $17.5 million, 169% greater than portfolio indicators for January 01, 2005. The Bank’s assets grew substantially in 2005, reaching $22.4 million – up from $9.3 million in 2004.
Impulse Microfinance Investment Fund Made $1,250,000 Debt Investment in Azerbaijan Micro Finance Bank (AMFB)
Established in 2002 by the European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), Black Sea Trade and Development Bank, and German LFS Financial Systems GmbH, AMFB provides financial services to micro and small business within the country. The bank’s typical microloans are between $400 and $10,000 for a maximum of 9 months. In June 2005, the Azerbaijan Microfinance Association reported that AMFB had a total loan portfolio of more than $11.4 million. It is the only one of the 45 commercial banks in Azerbaijan that focuses on microfinance services. AMFB does not report to the MIX Market, the World Bank’s microfinance information clearinghouse. Further information about their performance is not publicly available.
Established in 1992, Incofin invests in MFIs in 14 countries, and in mid-2005 had total assets of $5.6 million. The duration of Incofin’s loans, which are between $120,000 and $600,000, is five years, and the terms offered are “LIBOR plus full cost plus full risk”. At the end of 2004, Incofin, along with KBC, Boerenbond, VDK Spaarbank, Volksvermogen (Belgian institutional investors) set up the Impulse Microfinance Investment Fund, which had initial capital of å¥5 million. By mid-2005, the fund’s assets were worth $15,413,875. The fund invests between $300,000 and $1.5 million in MFIs, and offers the same terms as Incofin.
Microcredit Lender Converts on New Debt Investment
Amidst a rising tide of investment in emerging markets, The International Finance Corporation has agreed to provide a US$2.2 million financing package to Micro Credit Agency Bai Tushum Financial Foundation (BTFF). The investment is being made in the form of a US$1.2 million loan with an option for the IFC to convert a portion of the loan into a US$1 million dollar equity stake in the MFI.
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World Bank Investing å¥30m of Equity in Microfinance Together with German Development Bank KfW to Establish “Southeast Europe Microfinance Fund” with an Expected Final Capitalization of å¥500m
The World Bank Group’s private sector arm, the International Finance Corporation (IFC) will invest å¥20 million in mezzanine “B” shares with a 10-year maturity and å¥10 million in senior “A” shares with a seven-year maturity, in the soon to be established European Fund for Southeast Europe (EFSE), which will eventually lend to banks and microfinance institutions (MFIs). The IFC’s stake is approximately 21% of the fund’s initial capitalization of å¥142 million. To reach its target of a å¥500 million capitalization within five years, EFSE expects to attract capital from multilateral and private institutional investors via multiple closings in the future. EFSE is expected to be the largest microfinance fund in Southeast Europe.
Continue reading “World Bank Investing å¥30m of Equity in Microfinance Together with German Development Bank KfW to Establish “Southeast Europe Microfinance Fund” with an Expected Final Capitalization of å¥500m”
International Finance Corporation Makes $1m Equity Investment in Pakistani Tameer Microfinance Bank
The World Bank Group’s private sector arm, the International Finance Corporation (IFC), bought a 10% stake in Tameer, a fledgling Pakistani microfinance bank. Established in 1956 to promote private sector investment in developing countries, the IFC (based in
Continue reading “International Finance Corporation Makes $1m Equity Investment in Pakistani Tameer Microfinance Bank”
International Finance Corporation Makes $3 Million Equity Investment into New Microfinance Fund Solidus
Through a $3 million equity investment, the International Finance Corporation (IFC), the private investment company of the World Bank, has helped to create Solidus Investment Fund S.A., a new microfinance equity investment fund with a final capitalization projected to be $30 million. Established in 1956 to promote private sector investment in developing countries, the IFC (based in Washington D.C.), had over $26 billion in total assets and a total committed loan portfolio of $19.3 billion as of the end of June this year. The IFC’s stake in the company amounts to 15.54% of Solidus’ initial funding of $19.3 million.
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$4.5 Million Microfinance Investment into Azerbaijan Micro Finance Bank Helps Establish Credit Line
The Azerbaijan Micro Finance Bank (AMFB) recently received a $3 million loan from the Black Sea Trade and Development Bank and a $1.5 million loan from the Triodos-Doen Foundation to be used as credit lines for small businesses. Established in 2002 by the European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), Black Sea Trade and Development Bank, and German LFS Financial Systems GmbH, AMFB provides financial services to micro and small business within the country. The bank’s typical microloans are between $400 and $10,000 for a maximum of 9 months. In June 2005, the Azerbaijan Microfinance Association reported that AMFB had a total loan portfolio of more than $11.4 million. It is the only one of the 45 commercial banks in Azerbaijan that focuses on microfinance services.
AMFB’s investor, the Black Sea Trade and Development Bank, is an “international financial institution” created in 1998 by the governments of
Another AMFB investor, The Triodos-Doen Foundation, founded by Dutch Triodos Bank and the Doen Foundation in 1994, provides loans ranging from $200,000 to $1 million for a maximum of five years to microfinance institutions (MFIs). The terms offered to MFIs are “Libor plus full cost plus full risk” and the “interest rate must be sufficient to cover potential devaluation against the Euro plus to cover costs of 8%.” The fund’s total assets stand at $34.822 million; $30.643 million of which has been allocated to microfinance investment.
Additional Resources
1) Consultative Group to Assist the Poor (CGAP): “Microfinance Capital Markets Update” is the best source for monthly updates on debt and equity deals in microfinance.
2) “Social and Economic Background of Azerbaijan.”
3) “Micro Finance Bank of Azerbaijan: Overview.”
4) “Micro Finance Bank of Azerbaijan: Mission.”
5) “Qualisteam: Black Sea Trade and Development Bank.”
6) Black Sea Trade and Development Bank (BSTDB) Press Release: “Black Sea Trade and Development Bank.”
7) MIX Market: “Triodos-Doen Foundation: Fund Instruments.”
8) MIX Market: “Triodos-Doen Foundation: Fund Description.”
9) “Black Sea Trade and Development Bank: A New Financial Player in the Balkans.”
10) “Microfinance in Azerbaijan.”