Category: Investment Funds

MICROCAPITAL BRIEF: Social Investors Investigate Criteria for Environmental, Social and Governance (ESG) Performance of Microfinance Institutions (MFIs), Triple Jump, Oikocredit Hold Meeting to Mull Harmonization of ESG Evaluation

The Social Investor Working Group on Tool Sharing and Harmonization, a group born out of the Social Investor Group meeting in Bern in June 2010, where approximately 40 investors representing about half of total assets under management in the microfinance sector met to discuss socially responsible investing, is exploring different ways to assess the environmental, social and governance (ESG) performance of microfinance institutions (MFIs). Continue reading

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MICROCAPITAL BRIEF: Social Investment Company responsAbility Makes Debt Investments Totaling $2.5m in FINCA Kosovo and fondiBESA of Albania

responsAbility Social Investments AG (responsAbility), a social investment company founded in 2003 in Switzerland, reported to MicroCapital that it made four debt investments during the month of August totaling EUR 2 million (USD 2.5 million) to microfinance institutions (MFIs) Foundation for International Community Assistance (FINCA) Kosovo and fondiBESA of Albania. Continue reading

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MICROCAPITAL BRIEF: Microfinance Investment Vehicle (MIV) European Fund for Southeastern Europe Invests $25m in Debt in Serbian Komercijalna Banka

In August 2010, the European Fund for Southeast Europe (EFSE), a microfinance investment vehicle (MIV) managed by Oppenheim Asset Management Services, loaned USD 25 million to Serbian Komercijalna Banka, a bank founded in 1970 with 251 branches in Serbia. Continue reading

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MICROCAPITAL BRIEF: Microfinance Investment Vehicle European Fund for Southeast Europe (EFSE) Invests $15m in Belorussian-Russian Belgazprombank Joint Stock for Microfinance

In August 2010, the European Fund for Southeast Europe (EFSE), a microfinance investment vehicle (MIV) managed by Oppenheim Asset Management Services, loaned USD 15 million to Belorussian-Russian Belgazprombank Joint Stock, a bank in Belarus with approximately 110,000 institutional and individual customers. Continue reading

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MICROCAPITAL BRIEF: BlueOrchard Finance Loans $2.5m to Peruvian Microfinance Institution (MFI) Confianza and Ecuadorian MFI Fundacion para el Desarrollo Microempresarial (D-Miro)

In August 2010, BlueOrchard Finance, a Swiss commercial microfinance intermediary which manages 6 microfinance investment vehicles (MIVs),  loaned PEN 4.27 million (the equivalent of USD 1.53 million) to the Peruvian microfinance institution (MFI) Confianza, which provides loans, insurance and fund transfer services, and USD 1 million to the Ecuadorian MFI Fundacion para el Desarrollo Microempresarial (D-Miro). Continue reading

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MICROCAPITAL BRIEF: responsAbility Microfinanz-Fonds and responsAbility Global Microfinance Fund Invest $3.8m in Microfinance Institutions Fondo de Desarrollo Comunal of Bolivia (Fondeco), Fundación para el Desarrollo Microempresarial of Ecuador (D-Miro) and Consejo de Asistencia al Microemprendedor (CAME) of Mexico

responsAbility Microfinanz-Fonds and responsAbility Global Microfinance Fund (rAGMF), microfinance investment vehicles managed by responsAbility Social Investments AG of Switzerland, recently reported to MicroCapital the details of five debt investments made during the month of July 2010, totaling the equivalent of USD 3.77 million. Continue reading

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MICROCAPITAL BRIEF: Unitus CEO Joseph Grenny Answers Questions Regarding Change in Strategy, Use of SKS Microfinance Initial Public Offering Proceeds

Mr Joseph Grenny, CEO of Unitus Inc., a US-based international nonprofit organization, recently responded to concerns regarding its announcement that it will be discontinuing its microcredit operations and regarding the use of its proceeds from the initial public offering of SKS Microfinance. Continue reading

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MICROCAPITAL BRIEF: Bankers Without Borders (BwB) Receives $150,000 in Seed Capital for Alliance Program from JP Morgan’s Social Finance Unit

Bankers without Borders (BwB), a volunteer program started in 2008 by the Grameen Foundation that supports microfinance and technology initiatives related to finance in poor countries, has received an investment of USD 150,000 in seed capital from JP Morgan’s Social Finance Unit to expand its services in the Americas and Asia as the “Alliance Program.” Continue reading

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MICROCAPITAL BRIEF: responsAbility Global Microfinance Fund and responsAbility Microfinanz-Fonds Invest $1.4m in Microfinance Institutions OXUS Tajikistan and Enterprise Bank Inc of the Philippines

responsAbility Global Microfinance Fund (rAGMF) and responsAbility Microfinanz-Fonds, microfinance investment vehicles managed by responsAbility Social Investments AG, recently reported to MicroCapital the details of four debt investments made during the month of July 2010, totaling the equivalent of USD 1.4 million, in microfinance institutions OXUS Tajikistan and the Enterprise Bank, Inc of the Philippines. Continue reading

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MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Provides $1.5m Loan to Bai-Tushum to Support Micro- and Small Enterprises in Kyrgyz Republic

European Bank for Reconstruction and Development (EBRD), an international finance institution headquartered in London, is providing a loan of KGS 67.5 million (USD 1.5 million) to Bai Tushum and Partners, a microfinance institution (MFI) in the Kyrgyz Republic, for on-lending to micro- and small enterprises (MSEs). This constitutes the first of two equal tranches under a KGS 135 million (USD 3 million) loan agreement signed in March 2010. According to EBRD, the transaction is part of a USD 60 million non-bank MFI framework for “Early Transition Countries,” which was approved by EBRD in September 2008. Continue reading

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MICROCAPITAL BRIEF: Belgian Investment Company for Developing Countries (BIO) Loans $4m Each to Prasac and Sathapana, Microfinance Institutions (MFIs) in Cambodia

The Belgian Investment Company for Developing Countries (BIO), established in 2001, recently loaned USD 4 million each to two microfinance institutions (MFIs) in Cambodia: Prasac and Sathapana. Continue reading

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MICROCAPITAL BRIEF: International Finance Corporation (IFC) to Provide $25m to Federal Bank, a Private Commercial Bank in India, to Support Small and Medium-sized Enterprises (SMEs)

The International Finance Corporation (IFC), a member of the World Bank Group, will provide financing of USD 25 million to Federal Bank, a private commercial bank in India, to improve support for small and medium-sized enterprises (SMEs) and to boost international trade opportunities. The deal will “facilitate transactions in challenging markets, promote competitive financing and build bank relationships with new institutions, thereby reducing risk and enabling more smaller businesses to engage in trade.” Continue reading

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MICROCAPITAL BRIEF: Andean Development Corporation (CAF) Approves $5m Line of Credit for Caja Rural de Ahorro y Credito (CRAC) Nuestra Gente to Support Micro and Small Enterprises in Peru

The Andean Development Corporation (CAF), a multilateral financial institution working across Latin America, has approved a USD 5 million line of credit for Caja Rural de Ahorro y Credito (CRAC) Nuestra Gente, a microfinance institution in Peru, to finance micro- and small enterprises in Peru. According to Eleonora Silva Pardo, the director of CAF in Peru, the granting of this line of credit is part of CAF’s goal of improving support for the micro- and small enterprise sector in all of Latin America. Continue reading

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MICROCAPITAL BRIEF: “Ethical Investment: Can it outperform other funds?”: Rob Robbins Examines Performance of Ethical Investments

Rob Robbins, founder of ‘Investing for the Soul,’ a US-based online “ethical investment” magazine, insists ethical investments can outperform their mainstream rivals. Ethical or socially responsible investment is an investment strategy that seeks to maximize both financial return an social good. According to Mr Robbins, “Most studies of ethical or socially responsible investment funds find that their performance is roughly similar or sometimes higher than returns from conventional investments.” Continue reading

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MICROCAPITAL BRIEF: European Investment Fund Implements $32m Guarantee Under the European Progress Microfinance Facility for Employment and Social Inclusion

The European Union (EU) has mandated the European Investment Fund to implement a EUR 25 million (USD 32 million) guarantee under the European Progress Microfinance Facility by issuing guarantees backed by the EU and covering microloans or guarantees supporting microloans. Continue reading

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MICROCAPITAL BRIEF: South Korean Government Launches Sunshine Microfinance Loan Program under Smile Microcredit Bank for Low-income Households

The South Korean government has launched “Sunshine Loans,” a new offering under Smile Microcredit Bank – a state-run microfinance program established in 2009 to provide unsecured loans to low-income households through partnerships with the private sector. Over the next five years, the program is slated to extend KRW 10 trillion (USD 8.45 billion) to low-income households. The program will be implemented by a variety of financial institutions, including the National Agricultural Cooperative Foundation, the National Federation of Fisheries Cooperative, the National Credit Union Federation of Korea, the Korean Foundation of Community Credit Cooperatives and several unnamed private mutual savings banks. Continue reading

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