MICROCAPITAL BRIEF: MicroCred Holding Raises $11m in Equity from Danish Microfinance Partners
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Saturday, February 8, 2014

MICROCAPITAL BRIEF: MicroCred Holding Raises $11m in Equity from Danish Microfinance Partners

» Posted by in Category: Deals,Key Players at 12:03 am

MicroCred Holding, a French microfinance investment company that was created by French NGO PlaNet Finance, has raised EUR 8.4 million (USD 11.4 million) in equity funding through an issue of new shares to Danish Microfinance Partners (DMP), a Danish investment fund that invests in micro-, small and medium-sized enterprises (MSMEs). DMP is a new investor and now owns a stake of 15 percent in MicroCred. The company has not yet specified what it plans to do with the funds.

As of December 2013, MicroCred Group reported an outstanding loan portfolio of EUR 162 million (USD 218 million), a savings portfolio of EUR 61 million (USD 83 million) and approximately 230,000 clients. The Group has operations in China, Cote D’Ivoire, Madagascar, Nigeria and Senegal. DMP is managed by Maj Invest, a Danish asset management company, which has USD 8 billion in assets under management. Financial information on DMP is not available.

By Tejas Jain, Research Associate

About MicroCred Group

MicroCred Group was created in 2005 by French NGO PlaNet Finance and three investors: the International Finance Corporation (IFC), Société Générale and AXA Belgium. Those founding shareholders were joined by the Agence Française de Développement (French Development Agency) and the European Investment Bank (EIB) in 2007 and Developing World Markets (DWM) in 2008. MicroCred Group invests in, manages and provides technical support to microfinance institutions (MFIs). The group has operations in China, Cote D’Ivoire, Madagascar, Nigeria and Senegal.  As of December 2013, MicroCred Group reported outstanding loan portfolio of EUR 162 million (USD 218 million), a savings portfolio of EUR 61 million (USD 83 million) and approximately 230,000 clients.

About Danish Microfinance Partners (DMP)

Danish Microfinance Partners (DMP) is a closed-end investment fund based in Copenhagen, Denmark, that invests in microfinance institutions (MFIs) and small and medium-sized enterprises (SMEs) in Africa, Asia and Latin America. DMP is managed by Maj Invest, a Danish asset management company, which has USD 8 billion in assets under management. Financial information on DMP is not available.

About PlaNet Finance

Founded in 1998 in Paris, France, PlaNet Finance is an NGO with the mission of alleviating poverty through microfinance. PlaNet Finance is active in approximately 80 countries as of 2012 and is comprised of nine for-profit and nonprofit units: PlaNet Finance Advisory Services, which provides technical and advisory services; Planet Rating, a microfinance rating agency; PlaNIS responsAbility SAS, which specializes in advisory services and structuring and managing microfinance funds; MicroCred, an investor in and manager of microfinance institutions; PlaNet Guarantee, which specializes in microinsurance; FinanCites, a social venture capital company; PlaNet University, a microfinance training provider; and MicroWorld, an internet-based platform allowing the public to make small loans for the benefit of microentrepreneurs.

Sources and Additional Resources:

MicroCred, “MicroCred Holding raises €8.4M,”
http://www.microcredgroup.com/microcred-holding-raises-e8-4m-2/

MicroCapital Story, October 19, 2013, “Goodwell West Africa Invests Equity in MicroCred Microfinance Bank Nigeria,”
http://www.microcapital.org/microcapital-brief-goodwell-west-africa-invests-in-microcred-microfinance-bank-nigeria/

MicroCapital Story, April 12, 2013, “Indian Microfinance Institution Satin Creditcare Sells 20% Equity Stake for $8m from Danish Microfinance Partners, MicroVest II, ShoreCap II; Lok Capital Exits,”
http://www.microcapital.org/microcapital-brief-indian-microfinance-institution-satin-creditcare-sells-20-equity-stake-for-8m-from-danish-microfinance-partners-microvest-ii-shorecap-ii-lok-capital-exits/

MicroCapital Universe Profile: MicroCred Group
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MicroCred

MicroCapital Universe Profile: PlaNet Finance, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=PlaNet+Finance

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