MICROCAPITAL BRIEF: Accion, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), Triodos to Acquire Myanmar’s Dawn Microfinance for $7m

Accion, a US-based microfinance NGO; Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a Dutch public-private partnership that aims to promote growth in developing economies; and Triodos Investment Management, a subsidiary of Netherlands-based Triodos Bank, have announced plans to invest a total of USD 6.85 million in Dawn Microfinance, a Myanmar-based microfinance institution (MFI).

The funds are intended to assist Dawn with expanding its operations. The company currently has approximately 30,000 clients and 12 branches in four different regions of Myanmar.

Under the terms of the investment, Accion will take a 40-percent stake in Dawn, and FMO and Triodos will each receive a 30-percent stake in the firm.

As of 2013, Accion reports total assets USD 333 million and, in association with its partner MFIs, has an active loan portfolio of USD 7.9 billion serving 6.7 million borrowers. As of 2014, Triodos Investment Management had EUR 2.4 billion (USD 2.7 billion) in total assets under management; a portion of which is invested in 112 MFIs in 45 countries. As of June 2014, FMO reports total assets of EUR 6.4 billion (USD 7.8 billion).

By Makai McClintock, Research Associate

About Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO):
Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) is a Dutch development bank that was founded in 1970. It supports financial institutions and governments through loans, guarantees and other investment promotion activities including local-currency investments. FMO is owned by the Dutch government, which holds a 51-percent stake, alongside commercial banks, trade unions, employers’ associations and individual investors. As of June 2014, FMO reports total assets of EUR 6.4 billion (USD 7.8 billion).

About Triodos Investment Management:
Triodos Investment Management BV, a wholly owned subsidiary of Triodos Bank of the Netherlands, manages funds in a range of sectors including financial sector development in developing countries, renewable energy finance and venture capital. As of 2014, Triodos Investment Management had EUR 2.4 billion (USD 2.7 billion) in total assets under management. The organization finances 112 microfinance institutions in 45 countries.

About Accion:
Accion is a private, US-based nonprofit organization with the mission of alleviating poverty by offering financial products such as microenterprise loans and business training. Accion was founded in 1961 and issued its first microloan in 1973 in Brazil. Accion’s partner microfinance institutions provide loans to men and women entrepreneurs through 62 microfinance institutions (MFIs) in 33 countries in Africa, the Americas and Asia. As of 2013, Accion reports total assets USD 333 million and, in association with its partner MFIs, has an active loan portfolio of USD 7.9 billion serving 6.7 million borrowers.

Sources and Additional Resources:

Accion Press Release: “Accion, FMO and Triodos Investment Management Form Consortium To Strengthen Financial Inclusion in Myanmar”

MicroCapital Profile: Accion

MicroCapital Universe Profile: Triodos Investment Management

MicroCapital Universe Profile: Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO)

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