MICROCAPITAL BRIEF: Grameen Crédit Agricole, Grameen-Jameel Pan-Arab Microfinance Guarantee $6m National Société Générale Bank Loan to The Lead Foundation Egypt

Grameen Crédit Agricole Microfinance Foundation, a wholesale lender and loan guarantor to microfinance institutions (MFIs), and Grameen-Jameel Pan-Arab Microfinance Limited, an MFI funder, have co-guaranteed an EGP 33 million (USD 5.74 million) three-year loan from the National Société Générale Bank Egypt to The Lead Foundation (Lead), an Egyptian microfinance NGO.

The split guarantee is intended to expand Lead’s outreach efforts, and to provide new opportunities for Egypt’s poor. As of September 2010, Lead had an outstanding loan portfolio of USD 28 million and 190,000 active clients, of which 82 percent are women.

According to Grameen Bank, the partnership between the two Grameen outfits marks the first cooperation between two of its independent microfinance investment structures [1].

By John Howard-Smith, Research Associate

About Grameen Crédit Agricole Microfinance Foundation: The Grameen Crédit Agricole Microfinance Foundation was founded in 2008 with a EUR 50 million (USD 73 million) endowment provided by Crédit Agricole SA and Grameen Trust. It is headquartered in France, but has operations throughout the world. The Foundation offers a range of financing products to microfinance institutions (MFIs), and targets MFIs that are deemed to be adhering to best governance, transparency, and consumer protection practices. The Foundation focuses on MFIs dedicated to agricultural and rural development, specifically those serving primarily women.

About Grameen-Jameel Pan-Arab Microfinance Limited: Grameen-Jameel Pan-Arab Microfinance Limited was established in 2003 and incorporated in 2007 as a joint venture between Grameen Foundation USA and Abdul Latif Jameel (ALJ) Foundation, a subsidiary of ALJ Group.  It is headquartered in the United Arab Emirates. The organization’s focus is to provide financial support and technical assistance to microfinance institutions (MFIs). As of 2010, Grameen-Jameel has financed 500,000 microfinance clients in nine countries with USD 50 million. Annual data on the organization’s activities are not available.

About The Lead Foundation (Lead): The Lead Foundation (Lead) is a microfinance non-governmental organization (NGO) founded in Egypt in 2003 by Egyptian individuals and the United States Agency for International Development (USAID). Lead offers microfinance services to low-income entrepreneurs, especially women. As of September 2010, Lead had an outstanding loan portfolio of USD 28 million and 190,000 active clients, of which 82 percent are women. As of 2009, Lead had USD 38.1 million in total assets, return on assets (ROA) of 6.87 percent and return on equity (ROE) of 12.44 percent.

[1] Grameen Crédit Agricole Press Release: “Grameen Crédit Agricole Microfinance Foundation and Grameen-Jameel Pan-Arab Microfinance Ltd. Jointly Guarantee NSGB Financing to The Lead Foundation Egypt”

MicroCapital’s Microfinance Universe profile: MicroCapital’s Microfinance Universe profile, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Credit+Agricole+Microfinance+Foundation

MicroCapital’s Microfinance Universe profile: Grameen-Jameel Pan-Arab Microfinance Ltd., https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen-Jameel+Pan-Arab+Microfinance+Ltd.

MicroCapital’s Microfinance Universe profile: The Lead Foundation (LEAD), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+Lead+Foundation

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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