MICROCAPITAL BRIEF: Overseas Private Investment Corporation (OPIC) Lends $45m to FINCA Microfinance Holding to Increase Outreach, Range of Services

The Overseas Private Investment Corporation (OPIC), a development finance institution of the US government, is lending USD 45 million to the Foundation for International Community Assistance (FINCA) Microfinance Holding (FMH), a for-profit investment vehicle controlled by US-based NGO FINCA International [1]. The seven-year loan is intended to extend the services of FINCA subsidiaries in unspecified OPIC-eligible countries.

FMH was created in 2011 and has raised a total of USD 122 million as of 2013. FINCA reports having 1 million clients in 22 countries as of 2013. As of 2012, it reported total assets of USD 841 million.

As of 2012, OPIC listed net income of USD 272 million and a total portfolio of USD 16.4 billion. OPIC has active projects in 150 countries as of 2013.

By Nisha Koul, Research Associate

About FINCA Microfinance Holding (FMH): FINCA Microfinance Holding (FMH), a for-profit subsidiary of US-based nonprofit FINCA International, was founded in 2011. It leverages funding from “socially responsible” partners with the aim of providing services to low-income people so they can increase their employment, incomes and standards of living. As of 2013, FMH has raised USD 122 million in two rounds of investments.

About FINCA International: Founded in 1984 by Dr John Hatch, a pioneer of the village banking model, the Foundation for International Community Assistance (FINCA) International is a microfinance network based in Washington, DC, that provides financial services to poor families through a network of locally managed institutions. FINCA targets its services to poor women living in the Americas, sub-Saharan Africa and Eurasia. As of 2013, FINCA International serves approximately 1 million clients through its subsidiaries in 22 countries. As of 2012, it had total assets of USD 841 million. In 2011, FINCA launched a subsidiary, FINCA Microfinance Holding LLC (FMH), with funding from the International Finance Corporation (IFC), KfW Bankengruppe, Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO), responsAbility, and Triple Jump.

About Overseas Private Investment Corporation (OPIC): The Overseas Private Investment Corporation (OPIC) is an arm of the US government that was established in 1971 as a development finance institution. OPIC works with private-sector firms in the US with the goal of creating 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 2012, OPIC listed net income of USD 272 million and a total portfolio of USD 16.4 billion. OPIC has active projects in 150 countries as of 2013.

Sources and Additional Resources:

[1] Information submitted to MicroCapital by FINCA Microfinance Holding, March 2014

MicroCapital Story, January 27, 2014, “Citigroup, Overseas Private Investment Corporation (OPIC) Lend $10m to Bank of Georgia to Support Financial Inclusion of Micro-, Small Enterprises (MSEs),” https://www.microcapital.org/microcapital-brief-citigroup-overseas-private-investment-corporation-opic-lend-10m-to-bank-of-georgia-to-support-financial-inclusion-of-micro-small-enterprises-mses/

MicroCapital Story, December 6, 2013, “FINCA Microfinance Holding Raises $48m from International Finance Corporation (IFC), Kreditanstalt fur Wiederaufbau (KfW), Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO), responsAbility Global Microfinance Fund, Triodos,” https://www.microcapital.org/microcapital-brief-finca-microfinance-holdings-raises-48m-from-international-finance-corporation-ifc-kreditanstalt-fur-wiederaufbau-kfw-nederlandse-financierings-maatschappijvoor-ontwikkelings/

MicroCapital Universe Profile, FINCA Microfinance Holding (FMH), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+Microfinance+Holding+%28FMH%29

MicroCapital Universe Profile, FINCA International, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+International

MicroCapital Universe Profile, OPIC, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Overseas+Private+Investment+Corporation+%28OPIC%29

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