MICROCAPITAL BRIEF: Deutsche Bank Secures $75m for Microfinance Enhancement Facility for On-lending to Micro-, Small Enterprises

Deutsche Bank, a German financial services company, recently secured USD 75 million in financing from unspecified private investors for the Microfinance Enhancement Facility (MEF), a microfinance investment vehicle, for on-lending via retail financial institutions to micro- and small enterprises in middle and low-income countries.

MEF was established in 2009 by the International Finance Corporation (IFC), a member of the US-based World Bank Group, and German development bank KfW Entwicklungsbank. As of September 2013, MEF has financed approximately 197,000 loans totaling USD 604 million and as of year-end 2012 holds total assets of USD 388 million and a gross loan portfolio of USD 367 million.

By Charlotte Newman, Research Associate

About Microfinance Enhancement Fund
Created in February 2009 by International Finance Corporation (IFC), the private investment arm of the World Bank Group, and the German development bank KfW Entwicklungsbank (KfW), the Microfinance Enhancement Facility (MEF) was designed to support the growth of microfinance institutions by providing them with refinancing liquidity. Co-managed by BlueOrchard Finance SA, Cyrano Management SA and responsAbility Investments AG, the fund has a target size of USD 500 million. As of September 2013, MEF has financed approximately 197,000 loans totaling USD 604 million, and as of year-end 2012 holds total assets of USD 388 million and a gross loan portfolio of USD 367 million.

About Deutsche Bank
Founded in 1870, Deutsche Bank has assets totaling EUR 1.78 trillion (USD 2.44 trillion) as of September 2013. Headquartered in Germany, the bank has employees in approximately 70 countries around the world. Deutsche Bank operates a microcredit development fund that provides financing to microfinance institutions (MFIs) with the aim of enabling them to attract further resources on a leveraged basis from local commercial banks.

Sources and Additional Resources:

Microfinance Enhancement Facility Press Release: “”Deutsche Bank secures USD 75 million of Private Investments in the Microfinance Enhancement Facility,” http://www.mef-fund.com/doc/MEF-Press-release-Deutsche-Bank.pdf

MicroCapital.org story, March 14, 2013, “Grameen Koota of India Receives $9.8m in Equity from Incofin, MicroVentures, Aavishkaar Goodwell, Creation Investments; $4m in Debt Funding from Deutsche Bank Microfinance Fund,” https://www.microcapital.org/microcapital-brief-grameen-koota-of-india-receives-9-8m-in-equity-from-incofin-microventures-aavishkaar-goodwell-creation-investments-4m-in-debt-funding-from-deutsche-bank-microfinance-fund/

MicroCapital.org story, February 7, 2012, “DemirBank of Azerbaijan to Borrow $8m from Microfinance Enhancement Facility, Co-Managed by responsAbility,” https://www.microcapital.org/microcapital-brief-demirbank-of-azerbaijan-to-borrow-8m-from-microfinance-enhancement-facility-co-managed-by-responsability/

MicroCapital Universe Profile: Microfinance Enhancement Facility
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Enhancement+Facility+%28MEF%29

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

MicroCapital Universe Profile: International Finance Corporation
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

MicroCapital Universe Profile: KfW Entwicklungsbank
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=KfW+Entwicklungsbank+%28KfW%29

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.

Similar Posts: