BlueOrchard Finance SA, a Switzerland-based microfinance intermediary, recently was appointed Fund Manager for the Microfinance Initiative for Asia (MIFA) Debt Fund. MIFA, with a target size of USD 1 billion, is a project of the International Finance Corporation (IFC), a member of the World Bank Group that supports private sector development, and KfW Bankengruppe, a German development bank, that aims to enhance institutional capacity for the delivery of microfinance services and to strengthen linkages between domestic and international capital markets. The MIFA Debt Fund, an initiative of MIFA, is sponsored by IFC; KfW Bankengruppe; Bundesministerium fur Wirtschaftliche Zusammenarbeit und Entwicklung (BMZ), the German Federal Ministry for Economic Cooperation and Development; and the European Union (EU). BlueOrchard will leverage its current investment teams in Asia, including Kyrgyzstan and Cambodia and a few microfinance institutions (MFIs) that it determines can benefit from financing from the fund.
The debt fund plans to invest approximately USD 100 million through debt, equity and structured finance projects over the next three to five years. MIFA itself also plans to leverage up to USD 50 million in advisory services for Asian microfinance. BlueOrchard had approximately USD 1.1 billion under management as of April 2011.
By Charlotte Newman
About BlueOrchard
BlueOrchard is a Switzerland-based, commercial microfinance intermediary that provides loans to microfinance institutions through its subsidiary BlueOrchard Finance S.A. and invests in the equity of microfinance institutions and microfinance network funds through its subsidiary BlueOrchard Investments S.A. BlueOrchard had approximately USD 1.1 billion under management as of April 2011.
About Microfinance Initiative for Asia (MIFA) Debt Fund
The Microfinance Initiative for Asia (MIFA) Debt Fund is a project of the International Finance Corporation (IFC) that aims to increase financial access for microborrowers and low-income households in Asia. The fund offers market-based debt financing and supports capacity building among financial entities that serve micro-entities. IFC and KfW Entwicklungsbank, another partner in the fund, plan to invest approximately US$950 million through debt, equity and structured finance projects over the next three to five years. MIFA also plans leverage up to US$50 million in advisory services for Asian microfinance.
Sources and Additional Resources:
BlueOrchard Press Release: “Microfinance Initiative for Asia (MIFA) Debt Fund,” http://www.blueorchard.com/jahia/Jahia/pid/532#5523
MicroCapital.org story, August 25, 2012, “MICROCAPITAL BRIEF: International Finance Corporation (IFC), Data Bureau Limited Launch Tongan Credit Bureau,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-data-bureau-limited-launch-tongan-credit-bureau/
MicroCapital.org story, August 16, 2012, “MICROCAPITAL BRIEF: International Finance Coporation (IFC) Makes $7m Loan to Enda Inter-Arabe Microfinance Institution of Tunisia,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-makes-7m-loan-to-enda-inter-arabe-microfinance-institution-of-tunisia/
MicroCapital Universe Profile: BlueOrchard
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=BlueOrchard
MicroCapital Universe Profile: Microfinance Initiative for Asia (MIFA) Debt Fund
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Initiative+for+Asia+Debt+Fund
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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