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The United Nations Development Program (UNDP) and United Nations Capital Development Fund (UNCDF) are each contributing USD 2 million into FIMA, the Financial Inclusion in Malawi Project, an initiative to increase the outreach of financial services within the low-income population.
Continue reading “MICROCAPITAL STORY: United Nations to Implement USD 4 million Microfinance Project in Malawi”
Over the past 6 weeks we have been keeping you up to date on the ongoing debate over the IPO of Mexican microfinance institution (MFI), Compartamos. This has included extracts from the Yahoo online ‘microfinance practice group’ discussion (click here to sign up), moderated by Mr. Chuck Waterfield. Below we quote from a comment posted by Mr. Malcolm Harper. Mr. Harper is former chairman of BASIX, an Indian MFI (1996-2006), and is founder and editor-in-chief of the ‘Small Business Development Journal’. He is also currently chairman of Micro-Credit Ratings International Ltd (M-CRIL).
At the time of the deal, and ongoing since then, there has been much discussion over this issue, particularly in the Yahoo online ‘microfinance practice group’ (see previous article on microcapital) which is monitored by Mr. Chuck Waterfield who has more than 20 years of experience in the microfinance industry. Below we quote in full a recent comment posted to the group by Mr. Waterfield regarding the CGAP focus note. Microcapital will also be posting our own paper review of the focus note over the coming days. 
The biggest news in microfinance last month was the sale of equity of Compartamos, a Mexican microfinance institution (MFI), on stockmarkets in both the US and Mexico (see previous article on microcapital). The move stirred up much debate and drawing on this, the Consultative Group to Assist the Poor (CGAP) has recently published a focus note addressing the issues brought up by this development.
Continue reading “MICROCAPITAL STORY: CGAP Publishes Focus Note on Compartamos Controversial IPO åö Discussed by Microfinance Practice Group”
This story comes to us here at MicroCapital.org courtesy of the May 2007 CGAP-MIX Capital Markets Update Newsletter. The Dutch fund Triodos-Doen made a USD 662,175 loan to the microfinance institution (MFI) Sinapi Aba Savings and Loan Ltd, which is under the umbrella organization of Opportunity International. Sinapi Aba reported to MIX market, the microfinance information clearinghouse, at the end of 2006 as having a gross loan portfolio of USD 13.6 million and USD 19.3 million in total assets. Its capital to asset ratio is 32.59% and its debt to equity ratio is 206.81%.
The MicroFinance Bank of Azerbaijan (MFBA) receives a loan from Blue Orchard Finance, a Swiss-based asset management company specializing in microfinance. The 5-year loan is on the order of USD 8 mm, and marks the largest single loan ever made to MFBA by any organization. The funds will be used by MFBA to provide further loans to support the growth of Azeri micro and small businesses (see Press Release on Microcapital.org).
This story comes to us here at MicroCapital.org courtesy of the May 2007 CGAP-MIX Capital Markets Update Newsletter. Oikocredit of the Netherlands made twenty seperate loans to microfinance institutions (MFIs) worldwide between March 22, 2007 and April 25, 2007. The most recently disbursed portion of this USD 19.7 mn in funding from the Dutch-based Oikocredit went to the Centro de Apoio aos Pequenos Empreendimentos (CPAE) of Brazil via a USD 308,417 loan on April 25, 2007. The CPAE reported to the MIX market, the microfinance information clearinghouse, at the end of 2005 as having a gross loan portfolio of USD 3.8 mn and USD 4.5 mn in total assets. Its capital to asset ratio during the same time period was 57.74% and its ratio of debt to equity was 73.18%.
This story comes to us here at MicroCapital.org courtesy of the May 2007 CGAP-MIX Capital Markets Update Newsletter. The Banco de Microfinan̤as de Mozambique (Socremo) received a USD 500,000 loan from the US-based Dignity Fund. Socremo is an African bank that was established in 1998 “to provide – in a transparent, professional and sustainable way – financial services to low and middle income groups, with special focus on micro and small entrepreneurs.” At the end of 2005, Socremo reported to the MIX Market, the microfinance information clearinghouse, of having a gross loan portfolio USD 5.3 mn and USD 8 mn in total assets. It also reported to having a capital to asset ratio of 36.15% and a debt to equity ratio of 176.66%. The Dignity Fund was established in California in 2005 to provide debt financing “to promising MFIs.” As of March 2007, the Dignity Fund has total fund assets of approximately USD 5.5 mn.
This story comes to us here at MicroCapital.org courtesy of the May 2007 CGAP-MIX Capital Markets Update Newsletter. Oikocredit, based in the Netherlands, made a USD 50,500 equity investment in CAP Microfinance, which does not report to the MIX Market, the microfinance information clearinghouse. This equity investment is not typical of Oikocredit which supports sustainable microfinance institutions (MFIs) mainly through loans, but is not without precedent.
This story comes to us here at MicroCapital.org courtesy of the May 2007 CGAP-MIX Capital Markets Update Newsletter. Mongolian XacBank received two loans from the Dutch Funds Tridos Doen and Tridos Fair Share, totaling USD 1.5 mn. According to MIX Market, the microfinance information clearinghouse, XacBank was established in 1998 to provide the following services: loans, voluntary savings, leasing, fund transfers, training and consultation. At the end of 2006, XacBank reported a gross loan portfolio of USD 50.2 mn, USD 76.3 mn in total assets. During the same time period, its capital to asset ratio was 12.22% and a 718.14% ratio of debt to equity. It received an A from the microfinance rating agency, Planet Rating.
With its acquisition of Sangli Bank, a private lender based in Western India, ICICI Bank, the second largest bank in
This story comes to us here at MicroCapital.org courtesy of the May 2007 CGAP-MIX Capital Markets Update Newsletter. The Dutch fund Hivos-Triodos made a loan of USD 1.56 mn to the Cambodian microfinance institution (MFI) AMRET, formerly EMT. According to the MIX Market, the microfinance information clearinghouse, it was established in 1991 to provide loans and voluntary savings. As of the end of 2006, it had a gross loan portfolio of USD 17.6 mn and USD 22.8 mn in total assets. Its capital to asset ratio is 25.79% and its debt to equity ratio is 287.81%.
This story comes to us here at MicroCapital.org courtesy of the May 2007 CGAP-MIX Capital Markets Update Newsletter. The Micro Finance Bank of Azerbaijan (MFBA) sells USD 4.3 mn of its shares to six investors: EBRD, Black Sea Trade and Development, IFC, KfW, LFS Financial Systems, and AccessHolding. The European Bank for Reconstruction and Development (EBRD) invested the equivalent of USD 1.1 mn in MFBA. The EBRD is a multilateral institution that was formed in 1991 to support market economies and democracies from Central Europe to Central Asia. The organization currently works with more than 70 commercial banks and non-banking financial institutions to support microbusiness and microfinance. To date it has lent more than USD 1bn to facilitate more than USD 15 bn of microloans in the region.
This story comes to us here at MicroCapital.org courtesy of the May 2007 CGAP-MIX Capital Markets Update Newsletter. AccessHolding made a USD 430,414 equity investment in the Mozambique-based Banco do Microfinan Microfinan̤as de Mozambique (Socremo). Socremo is an African bank that was established in 1998 “to provide – in a transparent, professional and sustainable way – financial services to low and middle income groups, with special focus on micro and small entrepreneurs.” At the end of 2005, Socremo reported to the MIX Market, the microfinance information clearinghouse, of having a gross loan portfolio USD 5.3 mn and USD 8 mn in total assets. It also reported to having a capital to asset ratio of 36.15% and a debt to equity ratio of 176.66%.
