IndusInd Bank, an India-based bank offering commercial and personal banking services, recently merged with Bharat Financial Inclusion Limited (BFIL), an India-based, for-profit microfinance institution (MFI) formerly known as SKS Microfinance. IndusInd is assuming the assets and liabilities of BFIL, the
Category: South Asia, East Asia and Pacific
MICROCAPITAL BRIEF: Invest in Visions’ IIV Mikrofinanzfonds Lends $13m to China Foundation for Poverty Alleviation (CFPA) for Microfinance Lending
Germany-based Invest in Visions (IIV) recently announced that it has disbursed a loan of USD 13 million to the China Foundation for Poverty Alleviation (CFPA) from IIV Mikrofinanzfonds, a microfinance investment vehicle that is active in developing countries. CFPA, an NGO in China, was established in 1989 and
MICROFINANCE EVENT: Asia Pacific Housing Forum 7: Powering Collaboration; July 18-19, 2019; New Delhi, India
Event Summary: The theme of the 2019 edition of this biennial forum is “powering collaboration for [the] housing ecosystem” in India, including addressing the changes to the housing market brought about by urbanization. Conference sessions will revolve around
MICROCAPITAL BRIEF: Majuven, Bod Tech Ventures Invest Equity in Motorbike, Payroll Lender Daung Capital of Myanmar
Singapore-based venture capital firms Majuven and Bod Tech Ventures recently invested unspecified amounts of equity in Myanmar-based financial technology (fintech) lender Daung Capital as part of its Series A funding round, valuing the company at SGD 16.5 million (USD 12 million). Founded in 2018, Daung Capital lends to
MICROCAPITAL BRIEF: Myanmar Lowers Microloan Interest Rate Cap from 30% to 28%, Compulsory Savings Minimum from 15% to 14%
The Ministry of Planning and Finance of Myanmar reportedly decreed recently that microfinance institutions (MFIs) must start charging less for loans immediately. Daw Phyu Yamin Myat, the general secretary of the 107-member Myanmar Microfinance Association, reportedly stated that a minimum of
MICROCAPITAL BRIEF: 3,200 Graduate from Financial Literacy Course in Papua New Guinea (PNG) Under ADB-backed Microfinance Expansion Project
As part of the Microfinance Expansion Project (MEP), which is co-financed by the Asian Development Bank (ADB) and the governments of Australia and Papua New Guinea (PNG), 3,200 people in PNG recently completed a financial education program in the city of Wewak in the province of East Sepik. The goal of the training is to help people learn to use financial services and otherwise manage their finances. Since its inception in 2012, MEP has
MICROCAPITAL BRIEF: NpM Unveils Database of Funders of Agtech (Agricultural Technology) in Africa, Asia
NpM, formerly known as the Netherlands Platform for Microfinance, recently rolled out a database of approximately 200 funders of agricultural technology (agtech) in Africa and Asia. Users can filter the funds by factors including
MICROCAPITAL BRIEF: Microfinance Institution LOLC Completes $20m Bond Issue on Cambodia Securities Exchange
LOLC (Cambodia) Plc, a microfinance institution (MFI) controlled by LOLC International Private Limited of Singapore, recently announced the listing of Cambodia’s second-ever corporate bond on the Cambodia Securities Exchange (CSX). LOLC Cambodia raised a total of KHR 80 billion (USD 20 million) through the issuance of two types of bonds underwritten by Taiwan-based Yuanta Securities: (1) fixed-coupon bonds and (2) FX-indexed bonds whose coupon payment varies depending on the KHR-USD exchange rate, thus protecting investors from foreign-exchange (FX) risk. The
MICROCAPITAL BRIEF: LeapFrog Emerging Consumer Fund III Closes with $700m for Equity Placements in Financial, Healthcare Services in Africa, Asia
LeapFrog Investments, a Mauritius-based private equity firm, recently announced the closing of its LeapFrog Emerging Consumer Fund III at a volume of USD 700 million. LeapFrog III will pursue equity investments in businesses that offer financial and healthcare services in emerging markets in Africa and Asia. The new fund is LeapFrog’s third and largest fund with its two preceding funds having
MICROCAPITAL BRIEF: C-Quadrat Dual Return Vision Microfinance Fund Invests in Varthana, Funder of Educational Institutions in India
The Dual Return Vision Microfinance Fund, which is managed by C-Quadrat Asset Management (AM), recently invested an undisclosed amount of funds in Varthana, an India-based lender to “affordable” private schools, with the aim of improving educational access for children whose families have low incomes. C-Quadrat AM is a member of the Austria-based C-Quadrat Investment Group.
Varthana lends to primary and secondary schools for infrastructure, teacher training and working capital. It also offers management and educational consultancy to school owners. As of 2019, Varthana has secured and
MICROCAPITAL BRIEF: MetLife Foundation, MicroSave, UNCDF Expand i3 Program to Improve Financial Health Through Digital Services in China
The UN Capital Development Fund (UNCDF), a US-based agency of the UN that focuses on financial inclusion and other forms of “sustainable development,” recently expanded the i3 program to China. The program, which already was operating in Bangladesh, Malaysia and Vietnam,
MICROCAPITAL BRIEF: Nordic Microfinance Initiative (NMI) Managing $10m from Norway Climate and Environment Ministry to Boost Palm Farmers’ Productivity in Indonesia Without Cutting Rainforest
Through Norway’s International Climate and Forest Initiative, the Norwegian Ministry of Climate and Environment recently disbursed NOK 90 million (USD 10.3 million) for a microfinance and
MICROCAPITAL BRIEF: IFAD, South Korea to Strengthen Support for “Climate-resilient” Farming, Value Chains, Increased Food Security in Developing Countries
The International Fund for Agricultural Development (IFAD), an Italy-based agency of the UN, and the Korea Rural Economic Institute (KREI), a quasi-governmental organisation in South Korea, recently signed an agreement to “strengthen their collaborative efforts to end hunger and poverty in developing countries.” In particular, the organizations will seek to “further develop agricultural value chains, climate-resilient agricultural practices and food security for smallholder farmers in developing countries, by mobilizing financial resources and contributing to the global policy dialogue.” Gilbert F Houngbo, the President of IFAD, described the agreement as
MICROCAPITAL BRIEF: STEP of India Borrows $200k from BNP Paribas for Microfinance Lending
The Sampurna Training and Entrepreneurship Programme (STEP), a nonprofit provider of microfinance and social services in India, recently borrowed INR 14 million (USD 200,000) from BNP Paribas, the France-based bank recently told MicroCapital. STEP, which is based in the city of Kolkata, also borrowed INR 10 million (USD 142,000) from BNP Paribas in 2018.
STEP clients are all women, mainly in urban areas. Established in 2010, STEP “firmly believe[s] that only providing access to finance is not enough for the holistic development of the disadvantaged families.” In addition to loans, it offers skills training, business counseling, health services and social support services. Its loans are designed for business, education, health needs and housing improvement. The business loans range in size from INR 1,000 (USD 14) to INR 50,000 (USD 710), with terms of
MICROCAPITAL BRIEF: Incofin CVSO Loans $3m to Rent2Own, Motorbike Seller in Myanmar
Rent2Own, a company that rents and sells motorbikes in Myanmar, recently borrowed USD 3 million from Incofin CVSO, a cooperative fund managed by Belgium-based Incofin Investment Management. In return for a downpayment as small as 10 percent, a driver may rent a motorbike while she pays to buy it over time. Each contract includes asset and life insurance, and the rider may
MICROCAPITAL BRIEF: Global Index Insurance Facility (GIIF) Offers $270k in Prizes to Insurers in South, East Asia via Agriculture Insurtech Innovation Challenge DEADLINE EXTENDED
Through May 15 (formerly April 30), providers of technology services that support agriculture index insurance in South Asia and East Asia may apply for nine prizes of up to USD 50,000 each. Index insurance is a mechanism by which covered individuals are reimbursed for losses when weather or other conditions exceed pre-established limits, rather than based on individuals’ losses.
The competition is divided into the following themes: (1) data and analytics; (2) sales and distribution; and (3) premiums and claims. The winners will be selected after the finalists
MICROCAPITAL BRIEF: Electronica Finance of India Sells $10m in “Masala Bonds” to responsAbility Climate Fund for Lending to Manufacturing SMEs to Cut Greenhouse Emissions
Electronica Finance Limited, a lender to micro-, small and medium-sized enterprises (MSMEs) in India, recently raised the local-currency equivalent of USD 10 million through a bond issue to a fund managed by Switzerland-based responsAbility Investments whose goal is to reduce the impact of people on climate. Electronica, which lends to firms involved in services and manufacturing, will use the funds to facilitate purchases of energy-efficient equipment for creating plastics, machine tools, packaging and
MICROCAPITAL BRIEF: Easypaisa Mobile Money Service of Telenor Microfinance Bank Offering Financial Access at Total Parco Fuel Stations in Pakistan
Customers of Easypaisa, a mobile money service of Telenor Microfinance Bank, are gaining access to financial services at the 800 Total Parco gas stations in Pakistan. The fuel stations have begun accepting Easypaisa to make purchases, and they are scheduled begin offering