The Microfinance Growth Fund (MiGroF), which is managed by Switzerland’s BlueOrchard Finance to support Latin American microfinance institutions, closed 2011 with USD 85 million in outstanding loans and USD 23 million in uninvested capital.Total assets for MiGroF, a seven-year fund, are expected to reach between USD 140 million and USD 250 million. The majority of investments will go to microfinance institutions in Bolivia, Ecuador, Colombia, Mexico and Peru. Leveraged by the US government’s Overseas Private Investment Corporation (OPIC), MiGroF holds investment from Latin American development bank and Corporación Andina de Fomento (CAF), US-based NGO ACCION International, public-private partnership the Norwegian Microfinance Initiative, Mexican bank Banamex and two members of the Inter-American Development Bank, Multilateral Investment and the Inter-American Investment Corporation [1].
By Natalie Baer, Research Associate
About the Microfinance Growth Fund (MiGroF): The Microfinance Growth Fund, managed by Switzerland’s BlueOrchard Finance, supports microfinance institutions in Latin America. As of December 31, 2011, MiGroF has USD 85 million in loans outstanding and investment capital of USD 23 million.
About BlueOrchard: BlueOrchard is a Switzerland-based, commercial microfinance intermediary that provides loans to microfinance institutions through its subsidiary BlueOrchard Finance S.A. and invests in the equity of microfinance institutions and microfinance network funds through its subsidiary BlueOrchard Investments S.A. BlueOrchard had approximately USD 1.1 billion under management as of April 2011.
About the Overseas Private Investment Corporation (OPIC): The Overseas Private Investment Corporation (OPIC) is an agency of the US government that was established in 1971 as a development finance institution. OPIC works with private-sector firms in the US to identify opportunities in emerging markets and create an enabling environment for private enterprise in developing countries. OPIC provides financing through direct loans as well as guarantees, political risk insurance and investment funds. As of September 30, 2010, OPIC reports total assets of USD 7 billion deployed in approximately 150 countries.
About ACCION International: ACCION International is a private, US-based nonprofit organization with the mission of alleviating poverty by providing financial products such as microenterprise loans and business training to its clients. ACCION was founded in 1961 and issued its first microloan in 1973 in Brazil. ACCION’s partner microfinance institutions provide loans to men and women entrepreneurs in 22 countries in Latin America, Asia, Africa and the United States. As of 2010, ACCION’s network serves 3.18 million active clients and has an active loan portfolio of USD 3.81 billion.
About the Multilateral Investment Fund (MIF): Multilateral Investment Fund (MIF) is an autonomous fund that was founded in 1993 by the Inter-American Development Bank (IDB). Now a member of the IDB Group, MIF has 38 donating member countries from Latin America, the Caribbean, North America, Europe and Asia. As of 2010, MIF reported having approved approximately 1000 projects in approximately 26 developing member countries and together with its partners has financed approximately USD 2.5 billion in project funding.
About the Norwegian Microfinance Initiative (NMI): The Norwegian Microfinance Initiative (NMI) is a partnership between the Norwegian public and private sectors that invests in and provides technical support for microfinance institutions (MFIs) in developing countries. The mission of NMI is “to contribute to the empowerment of poor people and to the creation of jobs, wealth, and economic and social sustainability in developing countries by investing in and supporting MFIs.” NMI makes its investments through two investment funds: NMI Global Fund, which supports the expansion of MFIs that already have large and sustainable operations, and NMI Frontier Fund, which supports emerging MFIs in Sub-Saharan Africa and South Asia. NMI’s website claims that its investors have committed NOK 600 million (equivalent to USD 100 million) to the NMI Global Fund and the NMI Frontier Fund as of December 2010.
About the Inter-American Investment Corporation (IIC): Founded in 1985, the Inter-American Investment Corporation (IIC) is a member of the Inter-American Development Bank (IDB) Group. IIC supports the establishment and expansion of private enterprises that help individuals and micro-, small and medium-sized enterprises (MSMEs) in Latin America and the Caribbean gain access to financial services. The mission of IIC is to promote economic development by contributing to the development of private enterprises. It provides both financing and advisory services to private enterprises in the region. In 2010, IIC reported total assets of USD 1.4 billion and provided USD 375 million in funding to MSMEs in Latin America and the Caribbean.
Sources and Additional Resources:
[1] MiGroF closes 2011 with US$85mn in loans to microfinance institutions http://www.bnamericas.com/news/banking/migrof-closes-2011-with-us85mn-in-loans-to-microfinance-institutions
MicroCapital Universe: Overseas Private Investment Corporation (OPIC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Overseas+Private+Investment+Corporation+%28OPIC%29
MicroCapital Universe: Microfinance Growth Fund (MiGroF)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Growth+Fund+%28MiGroF%29
MicroCapital Universe: BlueOrchard, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=BlueOrchard
MicroCapital Universe: ACCION International, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ACCION+International
MicroCapital Universe: Multilateral Investment Fund (MIF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Multilateral+Investment+Fund+%28MIF%29
MicroCapital Universe: Norwegian Microfinance Initiative (NMI),
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Norwegian+Microfinance+Initiative+%28NMI%29
MicroCapital Universe: Inter-American Investment Corporation (IIC),
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Inter-American+Investment+Corporation+%28IIC%29
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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