Category: South Asia, East Asia and Pacific

MICROCAPITAL BRIEF: Janalakshmi Financial Services to Buy $90m in Products, Services From International Business Machines (IBM)

Janalakshmi Financial Services (JFS), a Bangalore-based microfinance institution (MFI) that offers lending and insurance services, and International Business Machines (IBM), a US-based information technology consulting company, have signed a six-year agreement worth INR 5.5 billion (USD 90 million) to provide JFS with IBM products and services in support of the MFI’s proposed growth in India. Continue reading

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MICROCAPITAL BRIEF: India’s ESAF Microfinance and Investment Issues $7.8m In Non-Convertible Debentures (NCDs) to Triodos

Evangelical Social Action Forum (ESAF) Microfinance and Investment Private Limited (EMFIL), a non-banking financial institution (NBFC) based in the Indian state of Kerala, reportedly has raised INR 475 million (USD 7.8 million) by issuing non-convertible debentures (NCDs) to Triodos Investment Management, a subsidiary of Netherlands-based for-profit Triodos Bank [1]. Continue reading

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MICROFINANCE EVENT: AlHuda Center of Islamic Banking and Economics to Host 4th Global Islamic Microfinance Forum, November 1-4, 2014, Dubai, UAE

Event Name: 4th Global Islamic Microfinance Forum

Event Date: Conference: November 1-2, 2014; Post-conference workshop: November 3-4, 2014

Event Location: Dubai, United Arab Emirates  Continue reading

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MICROCAPITAL BRIEF: Symbiotics Issues $30m in Bonds to MicroCred China; India’s Arohan, Grameen Koota, Annapura Microfinance

Symbiotics, a Switzerland-based investment company that focuses on emerging markets, has completed bond transactions worth a total of USD 30 million with MicroCred China, an affiliate of the France-based MicroCred and PlaNet Finance groups; Arohan Financial Services Private Ltd., an Indian financial services company; Grameen Financial Services Private Ltd., a Bangalore-based microfinance institution (MFI) also known as Grameen Koota; and Annapurna Microfinance Private Ltd., an MFI based in the Indian state of Odisha. Continue reading

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MICROCAPITAL BRIEF: Vietnam Bank for Social Policies (VBSP) Deploys Intellect Core Banking Solution of Indian Software Firm Polaris

The Vietnam Bank for Social Policies (VBSP), a government-owned bank that offers microfinance and other services in Vietnam, recently has deployed the Intellect (R) Core Banking Solution (CBS), an enterprise platform offered by India-based Polaris Financial Technology Limited (Polaris) [1]. Continue reading

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MICROCAPITAL BRIEF: Pakistan’s Khyber Pakhtunkhwa Provincial Government, Bank of Khyber (BOK) Launch $10 million Islamic Microfinance Scheme to Promote Employment for 550k Unemployed Workers in the Province

The government of the Pakistani province of Khyber Pakhtunkhwa province reportedly has committed a PKR 1 billion (USD 10 million) to an Islamic microfinance scheme to be implemented through the Bank of Khyber (BOK), a Pakistani bank that offers banking services and microfinance loans that comply with Islamic law by using concepts such as profit sharing in lieu of charging interest. Continue reading

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MICROCAPITAL BRIEF: Incofin Investment Management Launches ProPulse Fund for Private Institutional Investors to Access Microfinance Institutions in Emerging Economies

Incofin Investment Management (Incofin IM), a microfinance fund manager based in Belgium, has announced the launch of its ProPulse Fund, which is designed specifically for private institutional investors to provide financing to entrepreneurs in emerging economies via microfinance institutions (MFIs) in response to “the large demand for local currency loans.” Continue reading

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MICROCAPITAL BRIEF: India’s Rashtriya Gramin Vikas Nidhi North East (RGVN) Microfinance Raises $7m in Equity Funding from Norwegian Microfinance Initiative Fund III, Oikocredit of the Netherlands, Dia Vikas Capital of India

Rashtriya Gramin Vikas Nidhi North East (RGVN), a microfinance institution (MFI) based in the Indian state of Assam, reportedly has raised approximately INR 420 million (USD 6.98 million) in equity funding from new investors [1]. Continue reading

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MICROCAPITAL BRIEF: Bangko Sentral Ng Pilipinas (BSP) Increases Maximum Microinsurance Benefits for Clients in the Philippines to $11k

The Bangko Sentral Ng Pilipinas (BSP), the central bank of the Philippines, has issued Circular Number 841, which amends the Manual of Regulation for Banks, increasing mandated maximum microinsurance premiums and benefits. Continue reading

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MICROCAPITAL BRIEF: Microcredit Regulatory Authority (MRA) of Bangladesh Cancels Licenses of 46 Microfinance Institutions Claiming Misuse of Funds

The Microcredit Regulatory Authority (MRA), a government body that oversees the nongovernment microfinance institutions (NGO-MFIs) in Bangladesh, reportedly has rescinded the licenses of 46 microfinance institutions (MFIs) in the country for being in violation of “existing directives in running their operations” [1]. Continue reading

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MICROCAPITAL BRIEF: India’s Ujjivan Financial Services Raises Debt Capital Worth $10m Through Issuance of Non-Convertible Debentures (NCDs) to International Finance Corporation (IFC)

Ujjivan Financial Services, an Indian microfinance institution (MFI), has raised INR 60 crores (USD 10 million) debt capital by issuing listed, secured and redeemable non-convertible debentures (NCDs) to the International Finance Corporation (IFC), the private-investment arm of the World Bank Group. Continue reading

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MICROFINANCE PUBLICATION ROUND-UP: Effects of Female Leadership on Microfinance Institutions (MFIs); Impact of Microcredit in Morocco; Social Performance Management Guide

Female Leadership, Performance, and Governance in Microfinance Institutions;” by Reidar Øystein Strøm, Bert D’Espallier and Roy Mersland; published by Elsevier; 2014; 16 pages; available for purchase at http://www.sciencedirect.com/science/article/pii/S0378426614000284

This report examines the relationship between the performance of microfinance institutions (MFIs) and whether women occupy high management positions, including CEO, chair or director, in those MFIs. Continue reading

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MICROCAPITAL BRIEF: Absolute Portfolio Management’s Vision Microfinance Funds Loan $14m to Microfinance Institutions (MFIs) in Armenia, China, India, Peru, Tajikistan

Absolute Portfolio Management (APM), an arm of Austria-based asset group C-Quadrat, recently informed MicroCapital that it has distributed credits in several currencies that total approximately the equivalent of USD 13.5 million to unspecified microfinance institutions (MFIs) in Armenia, China, India, Peru and Tajikistan through its Dual Return Fund-Vision Microfinance and Dual Return Fund-Vision Microfinance Local Currency. Continue reading

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MICROCAPITAL BRIEF: Government-Backed Dutch Good Growth Fund Launches with $950m, Aims to Support Small, Medium-sized Enterprises (SMEs) in the Netherlands, Developing Nations

The Dutch Good Growth Fund (DGGF), a Netherlands-based loan fund that is funded with EUR 700 million (USD 947 million) from the Dutch Ministry of Foreign Affairs, has opened for business as of July 2014. Continue reading

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MICROCAPITAL BRIEF: Otoritas Jasa Keuangan (OJK) to Lead Supervision of Microfinance Institutions (MFIs) in Indonesia

Otoritas Jasa Keuangan (OJK), the Indonesian government agency that regulates the country’s financial sector, reportedly has signed a cooperation agreement with the Ministry of Home Affairs, the Indonesian government agency in charge of domestic issues, and the Ministry of Cooperative and Small and Medium Enterprises, an Indonesian regulator of smaller businesses, in an effort to improve the regulation and supervision of microfinance institutions (MFIs) in Indonesia [1][2]. Continue reading

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MICROFINANCE PUBLICATION ROUND-UP: Microfinance “Banana Skins” Risk Assessment; Effects of Microloans from Compartamos in Mexico; Youth Financial Inclusion Video

“Microfinance Banana Skins 2014: Facing Reality;” published by Centre for the Study of Financial Innovation; July 2014; 84 pages; available athttp://csfi.org/files/Microfinance_Banana_Skins_2014_-_WEB.pdf

This report, which is based on data collected by surveying 306 people associated with the microfinance industry, examines 19 risks faced by microfinance institutions (MFIs) across the globe. Continue reading

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