MICROCAPITAL BRIEF: Standard Chartered Bank Closes Its First Microfinance Deal in Philippines, $1.5m to CARD Bank

Standard Chartered has provided its first microfinance loan in the Philippines to CARD Bank, a microfinance institution (MFI) with over 205,097 active borrowers and a gross loan portfolio of USD 20.1 million as of year-end 2008.

According to a Standard Chartered press release, “the PHP 75 million (USD 1.5 million) loan will be used to bolster CARD Bank’s portfolio and branch expansion plans for 2010. This will benefit over 15,000 farmers, rural industries and small enterprises in the Philippines. This milestone transaction is the first MFI loan by Standard Chartered into South East Asia and sees the Bank’s microfinance footprint expand to 22 countries from 21.”

The loan is supported by a US 500,000 guarantee from Women’s World Banking (WWB), a global network of 54 microfinance providers and banks working in 30 countries to bring financial products and services to low-income entrepreneurs, especially women.

About Standard Chartered PLC:

Standard Chartered was formed in 1969 through a merger of two banks: The Standard Bank of British South Africa, founded in 1863, and the Chartered Bank of India, Australia and China, founded in 1853. The bank has over 1,600 branches in over 70 countries. Since the 1990’s, Standard Chartered has focused on developing its franchises in Asia, Africa and the Middle East.

According to a February 2010 press release, “in 2006 Standard Chartered committed to provide development organizations and fund managers with USD500m of credit and financial instruments as well as technical assistance to finance microfinance institutions (MFIs) in Africa and Asia by 2011. In December 2009 the Bank exceeded the target, providing USD540m to microfinance industries in Africa and Asia, benefiting over 4 million people who are currently excluded from participation in the financial sector.”

About CARD (Center for Agricultural and Rural Development) Rural Bank:

CARD (Center for Agricultural and Rural Development) Rural Bank is a microfinance bank based in the Philippines. It was established in 1997 and is part of the CARD group of mutually reinforcing institutions including CARD Development Bank, CARD NGO, CARD NGO Microfinance, CARD Training Center, CARD Development Institute, CARD Mutual Benefit Association, and CARD Insurance Company. It offers loans, insurance, voluntary savings, training, and consulting. As of July 31, 2009, it had 30 branches.

About Women’s World Banking (WWB):

WWB is a global network of 54 microfinance providers and banks working in 30 countries to bring financial products and services to low-income entrepreneurs, especially women. WWB’s team of 40 microfinance professionals works with member institutions to develop innovative business strategies, strengthen their organizations, and create products that best meet the needs of the poor in the communities they serve. The WWB network serves over 21 million micro-entrepreneurs.

Additional Resources:

Source Article: Standard Chartered Press Release: “Standard Chartered Bank Provides its First Microfinance Loan in the Philippines,” http://www.standardchartered.com/media-centre/press-releases/2010/documents/20100210/index.html

MicroCapital Universe: Standard Chartered PLC: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Standard+Chartered+PLC

MicroCapital Universe: CARD (Center for Agricultural and Rural Development) Rural Bank: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Center+for+Agricultural+and+Rural+Development+%28CARD%29+Rural+Bank

Standard Chartered Bank Sustainability Data: http://www.standardchartered.com/sustainability/data-trends/en/index.html

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