MICROCAPITAL BRIEF: FMO Lending $3m to Philippines’ Microfinance Institution One Puhunan

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a Dutch development bank, recently announced that it will disburse a loan of USD 3 million from the Dutch government’s MASSIF Fund to the Microfinance Philippines Financing Company, which is also known as One Puhunan. The microfinance institution (MFI) plans to use the funds to expand its loan portfolio in the Bicol Region and Mindanao.

Founded in 2014, One Puhunan provides group loans to 52,000 women via 110 branches in 18 Philippine provinces as of 2016. As of the same year, it reports an outstanding loan portfolio of EUR 6.2 million (USD 6.6 million). One Puhunan is a part of Credit Access Asia, which is based in the Netherlands. Credit Access also operates an MFI in Indonesia that serves 175,000 people and one in India that serves 1.35 million people. The network’s aggregate gross loan portfolio is valued at EUR 357 million (USD 377 million).

Founded in 1970, FMO is 51-percent owned by the Dutch government. Its other stakeholders are commercial banks, trade unions, employers’ associations and individual investors. FMO supports governments and invests in financial institutions, energy firms and agribusiness operators in developing countries through loans, guarantees and other investment promotion activities, including local-currency investments. As of 2015, FMO reported total assets of EUR 8.4 billion (USD 9.0 billion).

FMO manages the MASSIF Fund on behalf of the Dutch Ministry of Foreign Affairs with the goal of increasing inclusive finance in Africa through the provision of financing and technical assistance to MFIs, banks and private equity funds. As of 2016, the MASSIF Fund reported total assets of EUR 797 million (USD 850 million) and an outstanding portfolio of EUR 458 million (USD 484 million).

By Phoebe Rorke, Research Associate

Sources and Additional Resources

FMO:
Project Details: Microventures Philippines Financing Company Inc.

FMO: Key Facts 2015

MASSIF Fund – Quarterly Report Q3 2016

One Puhunan:
About Us – One Puhunan

Credit Access Asia:
One Puhunan 2016 Financial Report

Credit Access Asia 2016 Financial Report

MicroCapital:
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FMO Investing $15m in Equity in Sanad Fund for MSME for On-lending in the Middle East, North Africa

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