Another Big Player Joins Microfinance Investment

Commercial microfinance made headway last month when Societe Generale, one of Europe’s leading financial institutions with almost $400 billion under asset management, participated in the launch of the investment company MicroCred with a $3.65 million investment. MicroCred is an initiative of PlaNet Finance, a French nonprofit committed to microfinance. Societe Generale’s investment represents 10% of MicroCred’s capital.

During the next five years, PlaNet Finance will guide MicroCred in creating or investing in 15 microfinance institutions (MFIs).

Although the Societe Generale investment is tiny compared to its other activities, it is important as the microfinance industry welcomes another large commercial investment house to the field.

Additional Resources

1) PlaNet Finance Press Release: "Societe Generale Displays its Commitment to Microfinance Alongside with PlaNet Finance by Entering the Capital of MicroCred."

2) Societe Generale Group

3) PlaNet Finance

4) MicroCapital Blog: "Big Deal in Tajikistan Illustrates Meager Deal-Flow in Microfinance Investment."

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