The Norwegian Microfinance Initiative (NMI), a partnership between the Norwegian public and private sectors that provides assistance for microfinance institutions (MFIs) in developing countries, has recently announced that its Global Fund will make an investment of EUR 4 million (equivalent to USD 5 million) in Triodos Microfinance Fund, a microfinance investment vehicle based in Luxembourg with total assets of USD 36.2 million.
According to information provided by Triodos to MicroCapital, Richard Weingarten, Managing Director of NMI, has said “We believe that Triodos demonstrates best industry practices in this area, and we are thus well-aligned with this investment” [1].
NMI’s Global Fund currently consists of investments in 16 larger MFIs in 11 countries across Africa, Asia and Latin America [1]. Although data on NMI’s Global Fund in particular is unavailable, NMI’s investors have committed NOK 600 million (equivalent to USD 100 million) to the NMI Global Fund and the NMI Frontier Fund, a fund that invests in smaller, emerging MFIs.
By Julia Korn, Research Associate
About Norwegian Microfinance Initiative (NMI):
The Norwegian Microfinance Initiative (NMI) is a strategic 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 will make 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. NMI’s investors have committed NOK 600 million (equivalent to USD 100 million) to the NMI Global Fund and the NMI Frontier Fund.
About Triodos Microfinance Fund:
The Triodos Microfinance Fund is a microfinance investment vehicle, which mobilizes capital for microfinance institutions (MFIs). The Triodos Microfinance Fund invests 80 percent of its portfolio in established microfinance institutions (MFIs) and 20 percent in start-up institutions. The fund allocates approximately 30 percent to equity and 70 percent to loans and debt securities. Investors include the Netherlands-based insurance company Achmea, a fund manager for charities in the UK; CCLA Investment Management Limited; and The Waterloo Foundation, a UK-based independent grant-making foundation. As of 2009, it had fund assets of USD 36.2 million.
Sources and Additional Resources:
[1] Norwegian Microfinance Initiative and Triodos Microfinance Fund Press Release. “NMI Global Fund today announced an investment of EUR 4 million in Triodos Microfinance Fund…” Submitted to MicroCapital by Triodos on July 8, 2010.
MicroCapital Universe. Norwegian Microfinance Initiative (NMI). https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Nor…
MicoCapital Universe. Triodos Microfinance Fund. https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Tri…
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