MICROCAPITAL BRIEF: Sagamore to Place $22m in Equity In Accion Microfinance China, Taking 70% Stake

Accion, a US-based nonprofit organization, recently announced an equity investment of CNY 140 million (USD 21.9 million) made by China-based Sagamore Investments in Accion Microfinance China (AMC). The initial transfer is in the amount of CNY 40 million (USD 6.25 million), while the remaining funds will be disbursed over the course of two years. Sagamore Investments will have a 70-percent stake in the company, and Accion, the operating partner, will have 30 percent.

AMC is a microfinance institution (MFI) established in 2009 to deliver financial services to microentrepreneurs in the region of Chifeng, Inner Mongolia. These services include working capital and fixed-asset loans for small and medium-sized enterprises (SMEs) starting at CNY 1,000 (USD 150). As of 2011, AMC has assets of USD 7 million, a gross loan portfolio of USD 6 million and 778 active borrowers.

Sagamore has firm has approximately USD 250 million of funds invested across venture capital and private equity funds, as well as USD 150 million in Chinese funds and companies.

By Mihaela Grindeanu, Research Associate

About Accion: Accion is a private, US-based nonprofit organization with the mission of alleviating poverty by providing financial products such as microenterprise loans and business training. 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 Accion Microfinance China (AMC): Accion Microfinance China (AMC), a subsidiary of US-based nonprofit Accion, was founded in 2009 and offers microloans to entrepreneurs in Chifeng Prefecture, Inner Mongolia. Loan amounts start at CNY 1,000 (USD 150). As of 2011, AMC has assets of USD 7 million, a gross loan portfolio of USD 6 million and 778 active borrowers.

About Sagamore Investments: Sagamore Investments was established in 2002 in China to make private investments in global biotechnology and healthcare services as well as in other sectors in China.  The firm has approximately USD 250 million of funds invested across venture capital and private equity funds, as well as USD 150 million in Chinese funds and companies.

Sources and Additional Resources:

Accion.org story: “Sagamore Investments to Invest US $22 Million In Accion Microfinance China”, http://www.accion.org/page.aspx?pid=4206

MicroCapital.org story, December 7, 2011: “MICROCAPITAL BRIEF: The International Finance Corporation (IFC) to Invest $1m in Equity in Accion Microfinance China”, https://www.microcapital.org/microcapital-brief-ifc-to-invest-1m-in-accion-microfinance-china/

MicroCapital.org story, March 8, 2010: “MICROCAPITAL BRIEF: Accion International Announces Inauguration of Accion Microcredit China (AMC), a Microfinance Institution (MFI) Located in Chifeng Prefecture, Inner Mongolia, China”, https://www.microcapital.org/microcapital-brief-accion-international-announces-inauguration-of-accion-microcredit-china-amc-a-microfinance-institution-mfi-located-in-chifeng-prefecture-inner-mongolia-china/

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

MicroCapital Universe Profile: Accion Microfinance China (AMC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Accion+Microfinance+China

MicroCapital Universe Profile: Sagamore Investments, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Sagamore+Investments#Sagamore_Investments

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

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