The Arab Centre for Agricultural Development (ACAD), an NGO microfinance institution (MFI) in Palestine; the European Investment Bank (EIB), a Luxembourg-based long-term lender for the European Union; Grameen Crédit Agricole Microfinance Foundation (GCAMF), a Luxembourg-based NGO that provides financing and technical assistance to MFIs; Solidarité Internationale pour le Développement et l’Investissement (SIDI), a France-based NGO that provides financial and technical support to MFIs; and Triple Jump, a Netherlands-based microfinance fund manager, have signed an agreement to support microfinance in Palestine through funding and training [1]. As part of the agreement, ACAD will be converted into ACAD Finance, a for-profit entity regulated by the Palestine Monetary Authority [1].
EIB is contributing technical assistance and USD 1 million from the European Neighbourhood Partnership Instrument, a unit of EIB that provides funding for economic development projects outside of the EU [2]. Further information regarding how GCAMF, SIDI and Triple Jump will participate in the transaction has not been released.
As of December 2011, ACAD reported to the US-based nonprofit Microfinance Information Exchange (MIX) 3,410 borrowers, a gross loan portfolio of USD 4.5 million, return on assets of 3.56 percent and return on equity of 6.44 percent. ACAD does not accept deposits.
The total subscribed capital of EIB as of December 2012 is EUR 232 billion (USD 313 billion). As of December 31, 2011, GCAMF reports reported total assets of EUR 51.1 million (USD 66.2 million) and 45 investment projects in 19 countries that support 30 microfinance institutions (MFIs), four social-business projects and one fund that covers foreign-exchange risk. As of December 2011, SIDI held USD 32.2 million in total assets. Triple Jump manages five microfinance investment funds, with total assets approximately equivalent to USD 473 million as of December 31, 2012.
By Megan McGowan, Research Associate
About Arab Center for Agricultural Development (ACAD):
The Arab Center for Agricultural Development is a nonprofit microfinance institution that was established in Palestine in 1993. As of December 2011, ACAD reported to the US-based nonprofit Microfinance Information Exchange (MIX) 3,410 borrowers, a gross loan portfolio of USD 4.5 million, return on assets of 3.56 percent and return on equity of 6.44 percent. The institution does not accept deposits.
About the European Investment Bank (EIB):
The European Investment Bank (EIB) was created in 1958 and now serves as the long-term lending bank of the European Union. In addition to supporting projects in EU member states, its main priorities include financing investments in likely future member states and EU partner countries, principally in the area of small and medium-sized enterprises. According to its website, “the EIB operates on a non-profit maximizing basis and lends at close to the cost of borrowing.” The total subscribed capital of the Bank is EUR 232 billion (USD 313 billion) as of December 2012.
About Grameen Credit Agricole Microfinance Foundation:
The Grameen Crédit Agricole Microfinance Foundation (GCAMF) was founded in Luxembourg in 2008 by Crédit Agricole SA, a French retail bank, and Grameen Trust (GT), a nonprofit microfinance organization affiliated with the Grameen Bank of Bangladesh. GCAMF offers financing products to microfinance institutions (MFIs), focusing on MFIs that prioritize rural development, transparency, consumer protection and serving women. As of December 31, 2011, GCAMF reports reported total assets of EUR 51.1 million (USD 66.2 million) and 45 investment projects in 19 countries that support 30 microfinance institutions (MFIs), four social-business projects and one fund that covers foreign-exchange risk.
About Solidarité Internationale pour le Développement et l’Investissement (SIDI):
Solidarité Internationale pour le Développement et l’Investissement (SIDI) (International Solidarity for Development and Investment), was established in 1983 by CCFD-Terre Solidaire (French Committee against Hunger and for Development), a French NGO. The fund provides financing and technical assistance to local associations, financial NGOs, companies, savings and credit unions, and socially-oriented banks in developing countries. As of December 2011, SIDI held USD 32.2 million in total assets.
About Triple Jump:
Triple Jump was founded in 2006 to support the expansion of microfinance institutions (MFIs) through the provision of capital and advisory services. Triple Jump was established by the NOTS Foundation, a Dutch development organization; Oxfam Novib, a Dutch organization for international cooperation and development; and ASN Bank, a “sustainability-driven” Dutch bank. Its shares are divided among these organizations and Triple Jump’s management team. Triple Jump is comprised of Triple Jump Fund Management (TJFM) and Triple Jump Advisory Services (TJAS). TJFM provides its clients with four investment options: hard and local currency loans, equity, guarantees and subordinated loans. TJAS is an independent foundation that provides consulting services and technical assistance to tier-3 and tier-4 MFIs. Triple Jump manages five microfinance investment funds, with total assets approximately equivalent to USD 473 million as of December 31, 2012. Its investments span 132 MFIs in 52 emerging markets in Latin America, Eastern Europe, Africa and Asia.
Sources and Additional Resources:
[1] EU Neighbourhood Info Project: “EIB Supports Microfinance in Palestine,” September 23, 2013 http://enpi-info.eu/medportal/news/latest/34515/EIB-supports-microfinance-in-Palestine
[2] European Investment Bank Press Release: “EIB Supports Microfinance in Palestine,” September 11, 2013, http://www.eib.org/about/press/2013/2013-135-eib-supports-micro-finance-in-palestine.htm
MicroCapital.org Story, “MICROCAPITAL BRIEF: European Investment Bank (EIB Loans $92m to National Microfinance Bank (NMB) of Tanzania for Micro-, Small, Medium-sized Enterprises,” July 26, 2013, https://www.microcapital.org/microcapital-brief-european-investment-bank-eib-loans-92m-to-national-microfinance-bank-nmb-of-tanzania-for-micro-small-medium-sized-enterprises/
MicroCapital.org Story, “MICROCAPITAL BRIEF: European Investment Bank (EIB) to Loan $12b by 2020 to African, Caribbean, Pacific Countries for Infrastructure, Private Business, Regional Developments,” July 25, 2013, https://www.microcapital.org/microcapital-brief-european-investment-bank-eib-to-loan-12b-by-2020-to-african-caribbean-pacific-countries-for-infrastructure-private-business-regional-developments/
MicroCapital Universe Profile: Arab Center for Agricultural Development (ACAD), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Arab+Center+for+Agricultural+Development+%28ACAD%29
MicroCapital Universe Profile: European Investment Bank (EIB), https://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=European+Investment+Bank+%28EIB%29
MicroCapital Universe Profile: Solidarité Internationale pour le Développement et l’Investissement (SIDI), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Solidarity+for+Development+and+Investment+%28SIDI%29
MicroCapital Universe Profile: Triple Jump, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Triple+Jump
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