December 10, MicroCapital.org featured Part 2 of a series on 2007 Equity Investments in Small and Medium Sized Microbanks. Previously, detailed information was provided on institutions with less than USD 100 million in assets. Here, in Part 3, we provide detailed financial and outreach information on microbanks with total assets greater than USD 100 million and less than USD 200 million. The institutions are presented in ascending order based on asset size. Continue Reading »

On December 5, MicroCapital.org featured Part 1 of a series on 2007 Equity Investments in Small and Medium Sized Microbanks. Here, in Part 2, we provide detailed financial and outreach information on microbank’s with total assets under USD 100 million. The institutions are presented in ascending order based on asset size. Continue Reading »

The Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse, reported Oikocredit, a co-operative financial development institution in the Netherlands, issued a loan to the Pro Mujer Network.  The network reported that the loan was extended to Pro Mujer Peru in the amount of 3.2 million nuevos soles (USD 1 million). Continue Reading »

The Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse, reported the Rural Impulse Fund, an investment fund managed by Icofin, based in Antwerp, Belgium, issued a loan of USD 300,000 to Fundación ESPOIR, a Latin America microfinance institution (MFI). Continue Reading »

The Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse, reported Swiss Microfinanz-Fonds issued a loan of USD 1 million to Microenterprise Development Fund Kamurj and a loan of USD 2.5 million to microfinance institution (MFI) Azerdemiryolbank of Azerbaijan. Continue Reading »

The Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse, reported LOKMicro, a Eastern Europe microfinance institution (MFI), received a loan of USD 1.4 million from responsAbility Mikrofinanz-Fonds, a loan of USD 2.0 million from responsAbility Microfinance Leaders Fund and a loan of USD 2.8 million from the VDK MFI Loan Portfolio. Continue Reading »

2007 has proven to be a productive year for international microfinance equity investments in small and medium sized microbanks. The Microfinance Capital Markets (MCM) Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse, reported 25 investments in 13 small and medium sized Microbanks by 21 investors. Continue Reading »

The Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse, reported responsAbility Global Microfinance Fund, a Luxembourg-based fund, issued a loan of USD 500,000 to ENLACE and a loan of USD 487,439 to EDPYME Confianza, both Latin America microfinance institutions (MFIs). Continue Reading »

The Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse, reported Oikocredit, a co-operative financial development institution in the Netherlands, issued a loan of USD 1 million to IDEPRO (Desarrollo de la Pequeña Unidad Productiva), a Latin America microfinance institution (MFI). Continue Reading »

The Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse, reported the Rural Impulse Fund, an investment fund managed by Incofin, based in Antwerp, Belgium, issued a loan of USD 500,000 to PRESTANIC, a rural Latin America microfinance institution (MFI). Continue Reading »

Wal-mart de México (Walmex), a subsidiary of the world’s largest retailer, has started its own bank, Banco Wal-mart de México Adelante. According to Reuters, Banco Wal-mart opened nine branches this month, with a total of 16 planned for November. Currently, the branches are offering free savings accounts and personal credit for in-store purchases up to 50,000 Mexican pesos (USD 4,450 equivalent). The bank is planning on opening as many as 80 branches in 2008 and will launch checking accounts, credit cards, payroll accounts and loans for small companies. Continue Reading »

The New York Times recently published an article highlighting the Mifos Initiative; a microfinance-focused open-source software development community that is addressing the growing information management needs of microfinance institutions (MFIs) by engineering and distributing a freely available management information system (MIS). Their product, called Mifos, provides functionality that helps MFIs run efficiently and achieve scale in respect to data collection and management. MicroCapital first covered the Mifos framework in July 2005 while it was being developed in conjunction with a pilot credit bureau project in Morocco. Continue Reading »

By Xavier Reille and Ousa Sananikone, published by Consultative Group to Assist the Poor (CGAP), April 2007, 2 pages, available on the Microfinance Gateway at http://www.microfinancegateway.org/content/article/detail/40677

The paper, a Consultative Group to Assist the Poor (CGAP) brief, by Xavier Reille and Ousa Sananikone, highlights the growth of foreign capital investment in microfinance, specifically the proliferation and impact of private investment funds. The authors begin by describing two primary players in microfinance investment, international financial institutions (IFIs), which provide seed capital to start-up microfinance institutions (MFIs), and private investment funds know as microfinance investment vehicles (MIVs). IFIs are investment arms of public development agencies. For example, the International Finance Corporation (IFC), a member of the World Bank Group, is considered an IFI. The Netherlands Development Finance company (FMO) is also an IFI. MIVs, on the other hand, draw funds from the private sector. BlueOrchard, an MIV, manages funds that deliver capital from private investors directly to MFIs through loans and other structures. MIVs are, in essence, financial intermediaries that act as distribution channels of private monies. Continue Reading »

JPMorgan, a US-based global financial services firm with assets of USD 1.5 trillion and operations in more than 50 countries, has announced the launch of a Social Sector Finance (SSF) unit within its Investment Bank. The unit will leverage JPMorgan’s existing products and expertise to bring financial services to microfinance and social enterprises. The unit’s service offering will include capital markets, structured products, and principal investments and will pursue a double bottom line strategy of both social benefits and financial returns.

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The Public Broadcasting Service (PBS) program, “NOW,” covered a story in September 2007 on microfinance entitled “Who’s Making Money from Microcredit?” The twenty minute segment explores the financial success of Mexican microfinance institution (MFI) Compartamos and its April 2007 initial public offering (IPO) that generated over USD 400 million for investors. Supporters of the Compartamos IPO hail the transaction as an achievement that signifies the emergence of the microfinance industry in mainstream financial markets. However, critics accuse the microfinance lender of exploiting the poor in an effort to reap profits.

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The Dignity Fund, a private partnership founded in 2005, brings capital to the microfinance industry in an effort to advance the upward mobility of the poor. The Dignity Fund seeks to increase the number of poor households with access to credit, savings and other financial services by providing debt financing to microfinance institutions (MFIs).

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United Parcel Service (UPS), a global package delivery service founded in 1907, has created a Centennial Grants Fund in honor of UPS’s 100 year anniversary. UPS’s fund has issued USD 1 million to three microfinance organizations that support micro-entrepreneurs across the globe. ACCION International will receive USD 400,000, Opportunity International will receive USD 390,000 and FINCA International will receive USD 210,000. The creation of the Centennial Grants Fund is the first time UPS has dedicated such a large portion of its corporate philanthropy to microfinance and micro-lending.

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Financiera Independencia, a Mexican microfinance institution (MFI) founded in 1993, has announced plans in a recent prospectus for a public offering of up to 20 percent of the company through primary and secondary offerings in Mexico and international markets. According to estimates on CNNMoney.com, the offering will raise up to 3.26 billion Mexican pesos or equivalent USD 305.6 million through the sale of 136 million shares which includes a provisional over-allotment of 17.7 million shares. Financiera Independencia will use net proceeds from the primary offering to fund new lending, expand its branch network, and for other corporate development initiatives.

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