MICROCAPITAL BRIEF: Bridge Launches with $24m from Accion, Bamboo Finance, DEG, FMO, Paul Kocourek to Support Rural, Thrift Banks in the Philippines

Bridge, a financial services company that plans to provide “capability building services and capital” to rural and thrift banks that focus on low-income populations and micro- and small businesses in the Philippines, recently announced its launch with equity investments totaling USD 24 million from Accion, a US-based nonprofit organization; Bamboo Finance, a Luxembourg-based commercial investment firm; Deutsche Investitions-und Entwicklungsgesellschaft GmbH (DEG), a German development finance institution; the Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO), a Dutch public-private development bank; and Mr Paul Kocourek, Bridge’s co-founder and chairman. The sizes of the stakes to be taken by each investor have not been disclosed.

According to Bridge co-founder Mr Gus Poston, the company has “already identified many effective banks that wish to expand their products and reach but lack the funds and skills to grow.” Bridge plans to offer support relating to product design, risk management and growth planning. The company plans to begin making investments by June 2013 and invest the USD 24 million within 2 years.

By Charlotte Newman, Research Associate

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 31 countries in the Americas, Asia and Africa. As of 2011, Accion reports total assets of USD 325 million and an active loan portfolio of USD 5.5 billion serving 5.1 million borrowers.

About Bamboo Finance
Founded in 2007, Bamboo Finance is a commercial investment firm based in Luxembourg. It has offices in Colombia, Luxembourg, Singapore, Switzerland and United States, and manages a total of 46 funds worth USD 250 million in 25 countries as of 2013. Bamboo invests in organizations offering services to low-income communities in sectors such as housing, healthcare, education, finance, energy, water and sanitation. The Bamboo Financial Inclusion Fund, which was launched in 2007, invests globally in microfinance institutions (MFIs) and microfinance funds and represents USD 195 million in total commitments from institutional and individual investors. Bamboo Finance acquired Accion Investment Fund, a US-based equity fund that provides capital to MFIs, for USD 105 million in November 2012.

About Deutsche Investitions-und Entwicklungsgesellschaft GmbH (DEG)
Deutsche Investitions-und Entwicklungsgesellschaft GmbH (DEG), a member of Kreditanstalt für Wiederaufbau (KfW) Bankengruppe, is a German development finance institution offering long-term project and company financing. DEG focuses on agribusiness, financial institutions, infrastructure and processing industries. As of December 2011, DEG reported total assets of EUR 4.3 billion (USD 5.6 billion) and net profit of EUR 219 million (USD 285 million).

About Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO)
The Netherlands Development Finance Company (FMO) is a public-private development bank that supports financial institutions and governments through “loans, participations, guarantees and other investment promotion activities.” It was founded in 1970 by the “Dutch government, private sector, employers and employee organizations.” As it has access to government funds, it can take higher risks with its investments including long-term finance. It also specializes in local-currency finance. In 2011, FMO reported total assets of EUR 5.06 billion (USD 6.53 billion) and EUR 2.59 billion (USD 3.34 billion) in net loans.

Sources and Additional Resources:

Information sent to MicroCapital by Accion.

MicroCapital.org story, Wednesday, February 6, 2013, “MICROCAPITAL BRIEF: Senate Passes Bill Expanding Types of Foreign Entities that Can Invest Capital in Rural Banks I the Philippines,” https://www.microcapital.org/microcapital-brief-senate-passes-bill-expanding-types-of-foreign-entities-that-can-invest-capital-in-rural-banks-in-the-philippines/

MicroCapital.org story, December 18, 2012, “MICROCAPITAL BRIEF: Accion’s Frontier Investments, Saama Capital Invests $4m in Equity in Shubham Housing Development Finance of India,” https://www.microcapital.org/microcapital-brief-accions-frontier-investments-saama-capital-invest-4m-in-equity-in-shubham-housing-development-finance-of-india/

MicroCapital Universe Profile: Accion
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Accion

MicroCapital Universe Profile: Bamboo Finance
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Bamboo+Finance

MicroCapital Universe Profile: Deutsche Investitions-und Entwicklungsgesellschaft GmbH (DEG)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Deutsche+Investitions-und+Entwicklungsgesellschaft+GmbH+%28DEG%29

MicroCapital Universe Profile: Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Nederlandse+Financierings-Maatschappijvoor+Ontwikkelingslanden+N.V.+%28Netherlands+Development+Finance+Company%2C+FMO%29

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