MICROCAPITAL STORY: PlaNet Finance United Arab Emirates (PlaNet Finance UAE) Holds Golf Tournament Promoting Awareness about Microfinance amongst International Financial Firms

PlaNet Finance United Arab Emirates (PlaNet Finance UAE), a branch of the global non-governmental organization (NGO) which provides technical assistance and consulting to microfinance institutions (MFIs) in close to 60 countries, held a golf tournament entitled “Tee Off Against Poverty” on April 23rd at the Wadi by Faldo course of the Emirates Golf Club (EGC) in Dubai in an effort to increase awareness about microfinance amongst international financial firms and other global corporations, according to a press release on ArabianBusiness.com.

Companies fielding teams of golfers included BNP Paribas, Clifford Chance, Total, and Walnut Finance, among others. Sponsoring the event were Gulf Business Machines (GBM), HSBC and PepsiCo.

France-based PlaNet Finance, which reports to the MIX Market, the microfinance information clearinghouse, was established in 1998 and maintains branches and affiliates in 29 countries. PlaNet Finance is organizing The Global Microfinance Investment Congress (reported by MicroCapital here) taking place May 14th through the 16th in New York City and is also the parent company for Planet Rating, a specialized microfinance rating agency created in 1999 which reports to the MIX Market and “has conducted over 300 missions in more than 60 countries” according to its web site. Planet Rating introduced a new rating methodology earlier this year, reported on by MicroCapital here.

Another establishment of PlaNet Finance, MicroCred Holding, seeks to create commercial microfinance companies in various countries by providing both equity capital and technical assistance. MicroCred Holding, which does not report to the MIX Market, created the following institutions since its founding in 2005: MicroCred Mexico, MicroCred Madagascar, MicroCred Senegal, and MicroCred Nanchong in China. As of March 31st, 2008, these four institutions reported a combined loan portfolio of over EUR 6.2 million and nearly 12,000 borrowers. MicroCred Madagascar accounted for the largest loan portfolio, at EUR 3 million, and MicroCred Mexico reported the largest amount of borrowers at almost 5,400. MicroCred Holding’s shareholders include the following: the Agence Française de Développement (AFD) (13 percent), AXA Bank Belgium (22 percent), Genefinance (a subsidiary of Société Générale) (22 percent), the International Finance Corporation (IFC) (17 percent), PlaNet Finance (4 percent), and the European Investment Bank (EIB) (22 percent). MicroCapital recently reported on MicroCred Holding here.

PlaNet Finance UAE is based in the International Humanitarian City (IHC) in Dubai and concentrates its efforts on raising awareness and building MFIs’ capacities by promoting best practices both in the UAE and across the Middle East. PlaNet Finance UAE is supported by donations and contributions and financial information was not available.

BNP Paribas, a French banking group which operates in 85 countries with 2007 total assets of EUR 1.7 trillion, is actively increasing its role in global microfinance and was recently reported on by MicroCapital here.

Clifford Chance, an international law firm with 28 offices in 21 countries, earned the Corporate Social Responsibility Award at the Financial Times (FT) Innovative Lawyer Awards in 2007 for creating a microfinance industry template agreement designed to “enable transactions to take place on a consistent, policy compliant and cost-effective basis.” The template was created in cooperation with Citi Microfinance, a division of Citigroup (Citi) working to provide financial services to underserved clients since 2005. More on Citi’s microfinance activities can be found in this MicroCapital article.

MicroCapital recently posted a news wire on the microfinance activities of HSBC, a London-based international bank operating in approximately 80 countries, in rural China.

No recent microfinance activities on the behalf of Total, Gulf Business Machines, PepsiCo, or Walnut Finance—whose team won the tournament—could be identified.

By Anthony Busch, Research Assistant

Additional Resources:

ArabianBusiness.com: Home, “Golf Tournament Raising Awareness of Microfinance”, April 24, 2008

Citi Microfinance: Home, About

Clifford Chance: Home, About, “Clifford Chance Wins at FT Innovative Lawyer Award”, August 29, 2007

Emirates Golf Club: Home, Wadi by Faldo

Google Finance: Home, Société Générale

International Humanitarian City: Home

MicroCapital news wire, March 28, 2008: “China: Rise in Rural Microfinance Investment from HSBC, Others Seen as Tip of Iceberg”

MicroCapital article, April 16, 2008: “ING Review of American International Group (AIG) and Its Partnerships with ACCION, FINCA, MicroCred, Pro Mujer, and Pak-Oman Microfinance Bank”

MicroCapital article, April 29, 2008: “ING Review of Citigroup’s Microfinance Activities and Its Syndicated Loan Securitizations for Compartamos, SKS Microfinance, and BRAC”

MicroCapital article, January 24, 2008: “Planet Rating of Paris, France, Introduces New Microfinance Rating Methodology”

MicroCapital article, April 7, 2008: “A Review of BNP Paribas’ Microfinance Activities and Outlook for Expansion”

MicroCapital article, March 27, 2008: “Standard Chartered Bank Announced as Principal Sponsor of the Global Microfinance Investment Congress”

MicroCred Holding: Home, Investment Philosophy, Madagascar, Mexico, Shareholders

MIX Market: Home

PlaNet Finance: Home, Presentation, Origins, International Network, The Global Microfinance Investment Congress, MIX Market Profile, MicroCred Holding

PlaNet Finance United Arab Emirates: Home, Activities, Presentation

Planet Rating: Home, Who Are We?, MIX Market Profile

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