MICROCAPITAL BRIEF: World Bank Group’s International Finance Corporation (IFC) Increases Presence in Cameroon, Indonesia with $22m Equity Investment in Bank Mayora, Advisory Agreement with Advans Cameroun

The International Finance Corporation (IFC), a member of the World Bank Group focused on private sector development, recently made an equity investment of USD 22 million in Indonesia-based Bank Mayora to support its services for micro-, small and medium-sized enterprises (MSMEs). Sarvesh Suri, IFC’s country manager for Indonesia, said, “Bank Mayora is our partner in widening access to financial products for micro- and small enterprises to increase rural incomes and promote sustainable urbanization in Indonesia; IFC’s participation as a minority shareholder will open up the bank’s family-held capital base to include institutional investors” [3]. Bank Mayora has total assets of IDR 2.8 trillion (USD 216 million), total deposits of INR 2.3 trillion (USD 177 million) return on equity (ROE) of 2.13 percent, return on assets (ROA) 0.36 percent and 64,240 customers.

IFC also entered an advisory services agreement with Advans Cameroun, a member of the Luxembourg-domiciled Advans SA network. IFC will provide advisory services valued at USD 1.18 million to Advans Cameroun, in support of rolling out a banking model involving mini branches that will primarily target rural areas. Advans SA is a network of nine microfinance institutions in Africa and Asia that provide access to financial services for MSMEs. As of December 31, 2013, Advans Cameroun holds total assets of USD 40.7 million, a gross loan portfolio of USD 38.4 million, 11,169 active borrowers, total deposits of USD 18.7 million, 35,300 depositors, return on assets (ROA) of 0.15 percent and return on equity (ROE) of 2.08 percent.

By Jeff Pierce, Research Associate

About The International Finance Corporation (IFC)

The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, offers loans, equity investments and advisory and risk mitigation services to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2014, IFC has 184 member countries that drive its policies and approve disbursements. In June 2014, IFC reported net income of USD 1.4 billion, total assets of USD 84.1 billion, return on assets of 1.8 percent and total investment mobilization of USD 38.1 billion.

About Advans Cameroun

Advans Cameroun is a microfinance institution (MFI) operating in Cameroon as a member of the Advans SA group of financial institutions, which is registered in Luxembourg. Advans Cameroun has offered credit and savings services to micro-, small and medium-sized enterprises (MSMEs) since it began operations in 2007. As of December 31, 2013, Advans Cameroun holds total assets of USD 40.7 million, a gross loan portfolio of USD 38.4 million, 11,169 active borrowers, total deposits of USD 18.7 million, 35,300 depositors, return on assets (ROA) of 0.15 percent and return on equity (ROE) of 2.08 percent.

 

About Advans SA

Launched in 2005, Advans SA SICAR is a venture capital company that is registered in Luxembourg and managed by Horus Development Finance of France. The mission of Advans is to increase access to financial services for micro-, small and medium-sized enterprises (MSMEs) in emerging economies. In addition to equity and debt funding for microfinance institutions (MFIs), Advans provides technical assistance to MSMEs in an effort to assist them in achieving sustainable and profitable operations. As of 2013, the Advans network serves approximately 322,000 loan clients via 140 branches in eight countries: Cambodia, Cameroon, Côte d’Ivoire, Democratic Republic of the Congo, Ghana, Pakistan, Tanzania, and Nigeria. As of March 2013, Advans SA held total assets of EUR 45.0 million (USD 61.7 million) and committed capital of EUR 43.6 million (USD 58 million).

Sources and Additional Resources:

[1] Jakarta Globe, “World Bank’s IFC to Inject $22m in Bank Mayora,” Arientha Primanita, http://thejakartaglobe.beritasatu.com/business/world-banks-ifc-to-inject-22m-in-bank-mayora/

[2] Ventures, “World Bank Boosts Financial Inclusion in Cameroon,” Emmanuel Iruobe, http://www.ventures-africa.com/2015/02/world-bank-boosts-financial-inclusion-in-cameroon/

[3] IFC Press Release: “IFC Invests More than $22 Million in Indonesia’s Bank Mayora to Expand Lending to Micro and Smaller Businesses,” http://ifcext.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/360794F71D3F497D85257E04002A8EC3?OpenDocument

MicroCapital Universe Profile: International Finance Corporation (IFC)

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

MicroCapital Universe Profile: Advans Cameroun

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Advans+Cameroun

MicroCapital Universe Profile: Advans SA

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Advans+SA

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