In connection with a USD 400 million debt facility received from Mainsail Trading Limited, an investment company based in Dubai, and guaranteed by Suisse Bank Plc, a British private bank, Africa Capital and Business Support Limited (ACBS), a Nigerian financial intermediary, announced the signing of a memorandum of understanding with Integrated Microfinance Bank Limited (IMFB) for an injection of NGN 6 billion (USD 39 million). Continue Reading »

ACCION Microfinance Bank Limited of Nigeria has reported an after-tax profit of NGN 75.92 million or the equivalent of USD 500,000 for the period ended December 31, 2009, compared to a reported loss of NGN 67.47 million or the equivalent of USD 400,000 for the year ended December 31, 2008. Continue Reading »

The Asian Development Bank (ADB) has agreed to provide Nepal with a loan of NPR 4.3 billion (USD 60.4 million equivalent) and a grant of NPR 870 million (USD 12.1 million equivalent) in an effort to increase access for credit to the rural poor and to women. The ADB Board of Directors approved the funding to be paid from its Asian Development Fund to finance the Nepalese Rural Finance Sector Development Cluster Program and other similar programs. Continue Reading »

“We expect the loan growth to double or triple over the next six months and for Korea to have the world’s largest microfinance program by next year,” says Kwon Hyouk Se, vice chairman of the Financial Services Commission in Korea. [1] Continue Reading »

A trend in initial public offerings (IPOs) by microfinance institutions in India could potentially increase the risk of defaults by microborrowers. SKS Microfinance, an Indian microfinance institution, has recently filed to raise up to USD 250 million in an initial public offering (IPO), as initially reported by MicroCapital on March 9, 2010. This pending IPO is causing concern that an IPO trend in India could trigger a trend in microfinance institutions’ (MFIs’) funding sources, as reported by MicroCapital on June 16, 2010, which could raise the risk of loan defaults by pressuring MFIs to disburse riskier microloans. Continue Reading »

CGAP (Consultative Group to Assist the Poor) announces that its 2010 microfinance photography contest is open for entries. This year’s contest focus is how microfinance touches the world, and the contest organizers are interested in photographs which reflect how microfinance has impacted the clients it serves or the world. Continue Reading »

The African Development Bank (AfDB) and four development finance institutions recently launched an African Capitalization Fund (the “Fund”), which will be structured as a private equity fund. The other financial institutions involved are the European Investment Bank, the International Finance Corporation (IFC), the OPEC Fund for International Development (OFID) and Abu Dhabi Fund for Development (ADFD). The Fund will be managed by the IFC’s Asset Management Company and will invest in private sector commercial banks. Continue Reading »

SKS Microfinance has recently filed to raise up to USD 250 million in an initial public offering (IPO), as initially reported by MicroCapital on March 9, 2010. The pending IPO, to be offered on the Bombay Stock Exchange and the National Stock Exchange of India, would be the first public offering for an Indian microlender and is resulting in debate about the future of funding microfinance institutions. Continue Reading »

The People’s Credit and Finance Corporation (PCFC), a Philippines government entity providing resources to retail microfinance institutions, has recently entered into a partnership with Key2Flex, an information technology company focused on rich internet applications, to assist with PCFC’s development of a geographic information system. Continue Reading »

Ujjivan Financial Services, an Indian microfinance institution, announces that it will reduce borrowing rates on new and renewal loans by 190-290 basis points. As a result, new business loans will cost 23 percent per annum and renewal loans will cost 22 percent per annum beginning in July 2010. As MicroCaptial reported on May 4, 2010, Bandhan Financial Services Private Limited, another Indian microfinance institution, reduced its annual rates on loans possibly triggering the Ujjivan reduction. Continue Reading »

Blue Financial Services, a South African microfinance institution reporting total reviewed assets equivalent to USD 343 million, has lost its operating license in Rwanda and expects to announce a year-end loss of up to USD 194 million for its fiscal period ended February 28, 2010. Blue attributes the negative results mainly to goodwill and deferred tax asset valuation impairments, an increase in loan loss reserves, reduced funding, early rapid expansion of the business and the weakening of African currencies.  The company has entered into an agreement with Mayibuye (Pty) Ltd to provide equity and debt financing.  As a result of the recapitalization, Mayibuye will become the majority shareholder. Continue Reading »

A recent article written by Bhagwan Chowdhry, Professor of Finance and Faculty Director at UCLA Anderson School of Management, explores traditional microlending contracts and considers microequity as an alternative method of providing microfinancing. Continue Reading »

Event Name: Sixth International Microinsurance Conference
Event Date: November 9-11, 2010
Event Location: Hotel Intercontinental, Manila, Philippines
See Our Comprehensive Event Calendar Here:
http://microfinanceassociation.ning.com/events Continue Reading »

MFTransparency, a non-governmental organization which promotes accurate and transparent pricing in the microfinance industry, recently expanded its work to launch its transparent pricing initiative in both Ecuador and Bolivia.  The initiative is being funded by the Ford Foundation, which provided a grant (amount unspecified) to MFTransparency to expand its data collection and dissemination efforts in Argentina, Bolivia, Colombia and Ecuador. Continue Reading »