Belgium investment company Incofin has invested å¥250,000 in Ecuadorian microfinance institution (MFI) Fundación ESPOIR, while Incofin’s Impulse Microfinance Investment Fund has invested å¥1 million in FINCA Kosovo, and å¥500,000 into Peruvian MFI EDPYME Confianza.
Continue reading “Belgian Investment Company Incofin Invests Over å¥1.5 Million in Three Microfinance Institutions (Fundación ESPOIR, FINCA Kosovo, EDPYME Confianza)”

The World Bank Group’s private sector arm, the International Finance Corporation (IFC), bought a 10% stake in Tameer, a fledgling Pakistani microfinance bank. Established in 1956 to promote private sector investment in developing countries, the IFC (based in Washington D.C.), had over $26 billion in total assets and a total committed loan portfolio of $19.3 billion as of the end of June this year.
Continue reading “International Finance Corporation Makes $1m Equity Investment in Pakistani Tameer Microfinance Bank”

The East African Development Bank (EADB) is floating a $10.8 million bond with a seven-year tenure to raise funds for its projects in Uganda, which often require local currency, microfinance in particular. Established in 1980, the EADB provides financial services in its member states of Kenya, Uganda, and Tanzania, and had total assets of $190.3 million at year end 2003—the latest information available.
Continue reading “East African Development Bank Floats $10.8 Million Bond for Partial Investment in Ugandan Microfinance”

Through a $3 million equity investment, the International Finance Corporation (IFC), the private investment company of the World Bank, has helped to create Solidus Investment Fund S.A., a new microfinance equity investment fund with a final capitalization projected to be $30 million. Established in 1956 to promote private sector investment in developing countries, the IFC (based in Washington D.C.), had over $26 billion in total assets and a total committed loan portfolio of $19.3 billion as of the end of June this year. The IFC’s stake in the company amounts to 15.54% of Solidus’ initial funding of $19.3 million.
Continue reading “International Finance Corporation Makes $3 Million Equity Investment into New Microfinance Fund Solidus”

Recently, we reported on the worrying development of the massive Gates Foundation ($36 billion in total assets) entering microfinance not as an investor, but as a donor. Since then, the Bill & Melinda Gates Foundation has awarded a $6 million grant to California headquartered “transnational microfinance network” Freedom From Hunger (FFH).
Continue reading “Gates Foundation Dips Deeper in Microfinance, Neglecting Another Investment Opportunity with a $6 Million Microcredit Grant to Microfinance Network Freedom From Hunger”

Marking the first time a microfinance organization has accessed the European capital markets on such a large scale, German-based ProCredit Holding AG issued a å¥45 million bond (rated BBB- by Fitch) in 7-year å¥20 million and 10-year å¥25 million tranches. Deutsche Bank was the advisor and book runner.

Continue reading “Led by Deutsche Bank, German Microfinance Company ProCredit Holding Issues å¥45 Million Bond for Microcredit Investment”

In addition to recent equity investment activity reported on December 6th, the Triodos Bank family of microfinance funds also lent over $6.7 million in seven deals. The Triodos-Doen Foundation, Triodos Fair Share Private Fund, and the Hivos-Triodos Fund have made loans to the Uganda Women’s Finance Trust ($545,600), Mongolian XacBank ($1m), Cambodian Thaneakea Phum Ltd. ($507,200), Mozambiquean Socremo ($627,000), Nicaraguan Fundación para el Apoyo a la Microempresa ($1.5m), and Bosnian and Herzegovinian MI-BOSPO ($942,080) and MIKROFIN (over $1.6m).
Continue reading “Dutch Triodos Family of Funds (Triodos-Doen, Triodos Private Fair Share, Hivos-Triodos) Makes Microfinance Investments Worth Over $6.7 Million in Loans to Seven Microcredit Institutions Worldwide”

French investment company Investor and Partner for Development (I&P) obtained a 20.5% stake in microfinance institution (MFI) Uganda Women’s Finance Trust Limited (UFT). Established in 2002 by French entrepreneurs and incorporated in the country of Mauritius, I&P invests in MFIs and small and medium-sized enterprises (SMEs). I&P had total assets of å¥8.5 million as of mid-March 2005, by which time it also had 5 active microfinance investments totaling å¥1.66 million and 3 active SME investments in the water, agriculture technology, and pharmaceutical industries totaling å¥455,000.
Continue reading “French Microcredit Investment Company Investor and Partner for Development Obtains 20.5% Stake in Micro-bank Uganda Women’s Trust”

Sacramento-based MicroCredit Enterprises Fund (MCE Fund) received a $3 million loan from the DC area Calvert Foundation. The MicroCredit Enterprises Fund, which has just been launched this year, is aligned with MicroCredit Enterprises LLC which has an operating budget of $200,000 for 2006. MicroCredit Enterprises will provide loans to both non-profit and for-profit microfinance institutions (MFIs) throughout the world. The MCE Fund’s application to become a non-profit is currently pending approval.

Continue reading “Calvert Foundation Makes $3 Million Investment in Recently Launched MicroCredit Enterprises Fund”

The Microfinance Information eXchange (MIX) received a $900,000 grant from the Omidyar Network. MicroCapital supports The MIX as the information standard on microfinance, and this is a perfect example of where donations should be made in microfinance.
Continue reading “Applauding $900,000 Grant from Omidyar Network to MIX, the Information Standard in Microcredit”

Transnational microfinance network Opportunity International has received a $2.2 million grant from the Bill and Melinda Gates Foundation, which Opportunity will use to create a trans-African network of microfinance institutions (MFIs) and train communities in HIV/AIDS prevention.
Continue reading “With a $2.2m Grant to Microfinance Network Opportunity International, Gates Foundation Dips Toe in Microcredit Investing—Is It Welcome?”

With plans to become a publicly traded company beginning next year, MasterCard Incorporation expects to establish the MasterCard Foundation initially worth 10% of the company. The foundation’s future work will be directed to microfinance services and supporting young people in gaining work-place skills.
Continue reading “MasterCard Foundation Announced Worth 10% of MasterCard Shares, Possibly a New $500m Grant-Maker in Microfinance”

A new deal between global investment banking company Incapital and social investment fund Calvert Foundation means a potential tenfold increase in availability of Calvert Foundation Community Investing Notes (CI) to U.S. brokerage firms. The Calvert Foundation, founded in 1995 by Calvert Group, an asset management firm with $8.5 billion under management, stands out in the “socially responsible investment” world because the CI Notes are available in almost all States to non-accredited investors with a $1,000 minimum investment.
Continue reading “Calvert Foundation Continues to Break Ground for Non-accredited Microcredit Investors”

"Self supervision" has virtually never been effective in developing countries, and external audits of MFIs – even by internationally recognized audit firms – seldom include adequate testing to provide reasonable assurance of the soundness of the MFIs loan portfolio, which is by far the largest risk area for microlenders.

Continue reading “How Important is Regulation and Supervision of Microfinance to Your Investment Decision?”

U.S. non-profit Grameen Foundation USA (GFUSA) and Silicon Valley Venture Capitalist Vinod Khosla have each made a $250,000 equity investment into Indian microfinance institution (MFI) Credit and Savings for the Hardcore Poor Financial and Technical Services (CFTS).

Continue reading “Legendary Venture Capitalist Vinod Khosla and Grameen Foundation Make $500,000 Microfinance Equity Investment into Indian Microfinance Institution”

Last month, we reported on GrameenPhone’s new text messaging service for the poor in Bangladesh, questioning whether or not we would see more partnerships between micro-lenders and wireless providers. We received an answer today, as Nokia and the Grameen Foundation USA (GFUSA) have announced a collaboration to bring affordable telecommunications to rural villages in Africa.

Continue reading “Grameen Foundation USA and Nokia Collaborate for Microfinance Investment in Rural African Telecommunications”

Healing Fields Foundation, which currently provides microinsurance to 2,000 families in various districts in central India, will expand its program to the West Godavari District. According to Mukti K. Bosco, the leader of Healing Fields, 52% of rural borrowers take out loans for health-related emergencies.

Continue reading “Microinsurance Provides Healthcare in India”

If you have not seen the Economist’s Survey on Microfinance this week, pick it up at the newsstand now (on-line subscription only). A must read for those interested in microfinance. On the lighter side, the following quotation provokes a smile:

Continue reading “Economist Survey on Microfinance Hits Home”