MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Loans $4m to Microfund for Women (MFW) of Jordan to Support Onlending to Female Entrepreneurs

The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral institution that provides loans and other services in 36 countries, recently announced that it will extend a senior loan of USD 4 million to Microfund for Women (MFW), an NGO microlender in Jordan, to support onlending to female entrepreneurs. The loan will be used to finance loans to both existing and new clients. EBRD will also provide technical assistance to MFW to assist the organization in expanding services to larger businesses.

As of December 2012, Microfund for Women has total assets of USD 38.7 million, a gross loan portfolio of USD 36.2 million, 81,000 borrowers, return on assets (ROA) of 3.91 percent and return on equity (ROE) of 9.23 percent. MFW does not accept deposits. In 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 36 countries.

By Megan McGowan, Research Associate

About Microfund for Women (MFW):

Microfund for Women (MFW) is a nonprofit microfinance institution in Jordan that was created in 1994 as a program of UK-based NGO Save the Children. In 1996, it began operating as an NGO named the Jordanian Women’s Development Society (JWDS). Its name was changed in 1999 to Microfund for Women (MFW). As of December 2012, Microfund for Women has total assets of USD 38.7 million, a gross loan portfolio of USD 36.2 million, 81,000 borrowers, return on assets (ROA) of 3.91 percent and return on equity (ROE) of 9.23 percent. MFW does not accept deposits.

About European Bank for Reconstruction and Development (EBRD):

The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries, and it is owned by 61 countries as well as the European Investment Bank and the European Union as of 2012. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 36 countries.

Sources and Additional Resources:

[1] EBRD Press Release : “EBRD Supports Women Entrepreneurs in Jordan,” http://www.ebrd.com/pages/news/press/2013/131217.shtml

MicroCapital: “European Bank for Reconstruction and Development (EBRD) May Loan $27m to Tunisie Leasing to Support On-lending to Micro-, Small, Medium-sized Enterprises (MSMEs) in Tunisia,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-may-loan-27m-to-tunisie-leasing-to-support-on-lending-to-micro-small-medium-sized-enterprises-msmes-in-tunisia/

MicroCapital: “Tamweelcom of Jordan to Launch Mobile Credit Facility in Mafraq, Northern Shuneh, Ramtha,” October 5, 2013, https://www.microcapital.org/microcapital-brief-tamweelcom-of-jordan-to-launch-mobile-credit-facility-in-mafraq-northern-shuneh-ramtha/

MicroCapital: “European Bank for Reconstruction and Development Loans $80m to Turkey’s Yapi Kredi for SME Energy Efficiency Projects,” July 9, 2013, ?https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-loans-80m-to-turkeys-yapi-kredi-for-sme-energy-efficiency-projects/

MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD)?http://microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29

 

MicroCapital Universe Profile: Microfund for Women (MFW): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfund+for+Women

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

Similar Posts: