MICROCAPITAL BRIEF: FINCA International Raises $30m in Debt in Nine Local Currencies to Support Financial Inclusion of Microentrepreneuers

The Foundation for International Community Assistance (FINCA International), a US-based nonprofit microfinance network, has announced that it has raised debt funding equivalent to USD 30 million in nine local currencies to support the financial inclusion of low-income microentrepreneurs through its Local Currency Microfinance Note III [1]. The loan is the third in the series of Notes raised by FINCA and is funded by unidentified private and institutional “socially responsible investors.” The funds have been on-lent as senior, unsecured loans to subsidiaries of FINCA in Azerbaijan, Georgia, Guatemala, Jordan, Kyrgyzstan, Mexico, Nicaragua, Tanzania and Uganda. Because the loans are in local currency, there is a reduced exchange rate risk for the subsidiaries.

As of 2014, FINCA International reported total assets of approximately USD 1 billion and 22 subsidiaries in Africa, Eurasia, Latin America and the Middle East.

By Nisha Koul, Research Associate

About FINCA International: Founded in 1984 by Dr John Hatch, a pioneer of the village banking model, the Foundation for International Community Assistance (FINCA) International is a nonprofit microfinance network based in Washington, DC, that provides financial services to poor families through a network of locally managed institutions. As of 2014, FINCA International serves approximately 1.7 million clients through its subsidiaries in 22 countries in Africa, Eurasia, Latin America, and the Middle East and has total assets of approximately USD 1 bilion. In 2011, FINCA launched a for-profit subsidiary, FINCA Microfinance Holding LLC (FMH), with funding from the International Finance Corporation (IFC), KfW Bankengruppe, Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO), responsAbility and Triple Jump.

Sources and Additional Resources:

[1] Press release submitted to MicroCapital by FINCA International, June 2014.

MicroCapital Story, April 26, 2014, EBRD, EFSE to Loan $16m to FINCA Azerbaijan to Support Micro-, Small, Medium-Sized Enterprises (MSMEs), Agricultural Lending, https://www.microcapital.org/microcapital-brief-ebrd-efse-to-loan-16m-to-finca-azerbaijan-to-support-micro-small-medium-sized-enterprises-msmes-agricultural-lending/

MicroCapital Story, July 3, 2013, FINCA International Starts Operations in Pakistan, https://www.microcapital.org/microcapital-brief-finca-international-starts-operations-in-pakistan/

MicroCapital Universe Profile, FINCA International, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+International

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