The European Investment Bank, the International Finance Corporation (IFC), KfW Entwicklungsbank, the Belgian Investment Company for Developing Countries (BIO) and the Netherlands Development Finance Company (FMO) have joined together to launch Rural Impulse II, a rural microfinance fund and successor to Rural Impulse Fund I. Several unnamed private banks and investors will also participate. The fund is an initiative of Incofin Investment Management, which has USD 36.2 million in under management and will act as fund advisor. The goal of the fund is to improve access to finance for poor rural communities around the world.
The Rural Impulse Fund II is the successor to Rural Impulse Fund I, one of the first microfinance facilities to specialize in commercially viable rural microfinance institutions. Rural Impulse Fund I has made investments with 24 institutions across 18 countries that have an aggregate customer base of approximately 1.5 million clients.
To be eligible to receive an investment from Rural Impulse Fund II, microfinance institutions must be in developing countries and with at least a 30 percent presence in rural areas in terms of customers. The fund will invest in a range of microfinance intermediaries, including NGOs, credit unions, microfinance banks and institutions targeting small businesses. Rural Impulse Fund II will invest in institutions in Africa, Latin America, Central Asia, the Caribbean, Central and Eastern Europe, India and South East Asia.
By Conner Brannen, Research Assistant
About Rural Impulse Fund I (RIF):
The Incofin Rural Impulse Fund (RIF) was launched in 2008 to invest in rural microfinance institutions (MFIs) that are deemed commercially viable. The Fund targets both farm and non-farm populations in small towns and villages. The Fund invests primarily through loans, though it makes equity investments and guarantees as well. Rural Impulse Fund I has made investments with 24 institutions across 18 countries that have an aggregate customer base of approximately 1.5 million clients.
About European Investment Bank (EIB):
Established in 1958 under the Treaty of Rome, the European Investment Bank (EIB) is the European Union’s long-term lending institution. Its owners are the Member States of the European Union, who subscribe to the Bank’s capital – approximately EUR 164 billion (USD 236 billion). The Board of Governors and the Board of Directors are the Bank’s independent decision-making bodies.
About the International Finance Corporation (IFC):
A member of the World Bank Group, the International Finance Corporation (IFC) uses loan and debt securities, equity investments and guarantees with the intent of alleviating poverty. It invests in financial institutions and other companies in emerging markets as well as providing technical assistance. The IFC has 182 member countries that ?collectively determine its policies, and approve investments.? In fiscal year 2009, its new investments totaled USD 14.5 billion.
About KfW Entwicklungsbank (KfW):
KfW Entwicklungsbank is a state-owned development bank in Germany. KfW has three goals: to reduce poverty, to make globalization fair and to conserve natural resources. KfW Entwicklungsbank collaborates with a variety of local financial institutions in approximately 60 countries, including microbanks, commercial banks, village savings banks, non-governmental organizations and regional microfinance funds. KfW Entwicklungsbank has a portfolio of around EUR 2.15 billion (USD 2.57 billion), around three fourths of which is made up of its own funds.
About the Belgian Investment Company for Developing Countries (BIO):
The Belgian Investment Company for Developing Countries (BIO), established in 2001, works to promote the creation of a strong private sector in developing countries to enable them to gain access to sustainable development and prosperity. BIO invests directly in private sector projects. BIO has invested in over 90 projects and is present in nearly 60 countries. In 2009, BIO had EUR 261.4 million (USD 319 million) in net commitments (the volume of financing contracts signed, less cumulated repayments, plus contracts formally approved by the board). In December 2009, the Belgian government allocated EUR 97 million (USD 118.4 million) in new funds to BIO.
About the Netherlands Development Finance Company (FMO):
Founded by both the Dutch government and the private sector in 1970, the Netherlands Development Finance Company aims to encourage development by promoting entrepreneurship in developing economies. FMO has an investment portfolio of EUR 4.2 billion (the equivalent of USD 5.7 billion). Headquartered in the Netherlands, FMO operates in Africa, Asia, Eastern Europe, and Latin America.
About Incofin Investment Management (Incofin IM):
Incofin Investment Management (Incofin) develops and manages funds investing in microfinance institutions (MFIs) in emerging countries. The assets under management by Incofin, which are spread over 5 funds/facilities, total EUR 180 million (USD 216 million). Incofin has invested in approximately 70 MFIs in 30 countries on 4 continents. Incofin?s head office is in Antwerp, Belgium.
Sources and Additional Resources:
Press Release: “European Investment Bank to support pioneering rural microfinance fund: leading development financial institutions launch EUR 100m Rural Impulse Fund II,” June 1, 2010: http://www.incofin.be/en/knowledge_center/Detail.aspx?newsId=28
MicroCapital Universe Profile: Incofin Rural Impulse Fund (RIF): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+Rural+Impulse+Fund+%28RIF%29
MicroCapital Universe Profile: European Investment Bank (EIB): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Investment+Bank+%28EIB%29
MicroCapital Universe Profile: International Finance Corporation (IFC): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
MicroCapital Universe Profile: KfW Entwicklungsbank (KfW): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=KfW+Entwicklungsbank+%28KfW%29
MicroCapital Universe Profile: Belgian Investment Company for Developing Countries (BIO): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Belgian+Investment+Company+for+Developing+Countries+%28BIO%29
MicroCapital Universe Profile: Netherlands Development Finance Company (FMO): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Netherlands+Development+Finance+Company+%28FMO%29
MicroCapital Universe Profile: Incofin Investment Management (Incofin): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+Investment+Management+%28Incofin+IM%29
Browse the MicroCapital Universe and add your entry to the wiki https://www.microcapital.org/microfinanceuniverse/
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