To finance its ambitious expansion plans, for-profit microlender SKS Microfinance has announced it plans to raise RUP 1.3 billion (USD 30.3 million) in equity capital through private investors, hoping to increase its equity base from roughly USD 50 to 80 million. SKS’ management plans to use the new funds to double its current customer base of 500,000 over the next two years. To meet its equity target, SKS added that it may induct a new investor onto its balance sheet. Continue Reading »

Produced for review by the United States Agency for International Development (USAID), released July 2007, written by Marc de Sousa-Shields of Enterprising Solutions and Caroline Esther Averch of Chemonics International, 26 pages, available at: http://www.microfinancegateway.org/content/article/detail/49344

Once it became evident that microfinance could be a financially sustainable enterprise, many microfinance institutions (MFIs) operating as non-governmental organizations (NGOs) sought to change their legal status to a commercial MFI. As private entities, these MFIs would not only be able to turn a profit, they would also gain access to private investors offering the debt-capital necessary to expand operations.

“Transitions To Private Capital” reviews the funding strategies employed by three Latin American MFIs following their establishment as for-profit MFIs. Below is a summary of each case, highlighting the key changes in funding, and an accompanying rationale behind each funding decision. Continue Reading »

IFC (International Finance Corporation), a member of the World Bank Group, has announced it will provide financial assistance in the launching of commercial microfinance institution (MFI) Advans Banque Congo. Based in the Democratic Republic of Congo, Advans Banque Congo will provide microloans to small enterprises and individuals located in the country’s urban areas. IFC’s support of the commercial MFI is its latest project in a campaign to expand microlending to 400,000 entrepreneurs in Africa’s poorest regions. Continue Reading »

CGAP (Consultative Group to Assist the Poor) recently reported that responsAbility Global Microfinance Fund (rAGMF) made two USD 300,000 loans to Latin American Cooperativa Mixta Mujeres Unidas Limitadas (COMIXMUL) and Frontera de San Ignacio. Continue Reading »

In its list of recent transactions, CGAP (Consultative Group to Assist the Poor) reported that Austrian investment firm Dual Return loaned USD 1,000,000 through its Vision Microfinance Fund to nonprofit microlender FINCA Armenia. Continue Reading »

ASA International, a holding company managed and partially owned by ASA, one of Bangladesh’s largest NGOs, has announced it will use USD $150 million of equity raised from foreign investors to expand commercial lending outside Bangladesh. Continue Reading »

CGAP (Consultative Group to Assist the Poor) recently reported that responsAbility Global Microfinance Fund (rAGMF) made loans to several Eastern European and Central Asian microlenders: USD 221,112 to Mikro Aldi, USD 400,000 to HUMO, USD 737,040 to AgroInvest, USD 1,000,000 to Kompanion, USD 1,000,000 to Constanta, USD 1,500,000 to Bai Tushum and USD 1,500,000 to Eskhata Bank. Continue Reading »

CGAP (Consultative Group to Assist the Poor) recently reported that Dutch-based Oikocredit made investments in two Cambodian microlenders: a  USD 1.28 million loan to HKL (Hatha Kaksekar Ltd) and a USD 1.55 million equity investment in AMRET. Continue Reading »

A new player to India’s microfinance space, Chennai-based Equitas has announced it will enlist the assistance of private equity firms to secure the organization’s second round of funding. Equitas hopes to raise USD 12.5 million from two private equity firms over a two-month period to establish additional branch offices in India’s southern region. Continue Reading »

At the Microfinance Leaders Retreat, a meeting to discuss the future development of microfinance, leaders of microfinance institutions, investment organizations and development agencies agreed that a code of ethics aimed at guiding lending practices of microfinance institutions should be established. Continue Reading »

CGAP (Consultative Group to Assist the Poor) recently reported that California-based MicroCredit Enterprises made a USD 150,000 investment in Latin American microfinance institution Pro Mujer. Continue Reading »