Papua New Guinea’s largest bank—Bank South Pacific (BSP)—and PNG Microfinance, a Papua New Guinean microfinance institution, signed an agreement recently, in which BSP acquired $1.37 million equity (40%) in PNG Microfinance. The other sixty percent of the company is owned by PNG Sustainable Development Program (PNG SDP), a Papua New Guinean non-profit, which initially created PNG Microfinance. Subscribed equity in the institution could reach up to $5.15 million in the near future, with the International Financial Corporation also planning on taking up a stake. Established in 2004, PNG Microfinance provides credit and financial services to micro and small businesses. It has almost 35,000 depositors, $1.55 million in total savings, and 1,400 active borrowers.
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) Main article discussed in entry, The National: “BSP Buys 40pc of PNG Microfinance.”
3) “IFC Projects.”
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