BlueOrchard Microfinance Securities (BOMS1)


Overview (14 word limit)

BlueOrchard Microfinance Securities (BOMS 1) is a Special Purpose Vehicle (SPV) that created a Collateralized Debt Obligation (CDO) that is collateralized by microfinance institution (MFI) debt obligations.

Description (140 word limit)

BOMS 1 is a Special Purpose Vehicle (SPV) with a seven year maturity. The SPV was created to make seven-year loans to a portfolio of microfinance institutions (MFIs), which are retail micro-lenders. The loans (the assets of the SPV) are used as collateral backing of the issuance of equity and senior subordinated debt. The Subordinated Notes are divided into three tranches (A,B, and C Notes), which offer different levels of risk and return. The Senior Notes are Certificates of Participation guaranteed by the Overseas Private Investment Corporation of the U.S. The Subordinated Notes were placed with both individuals and institutions, while the Senior Notes were placed on the open market by JP Morgan Securities. The CDO closed in two tranches (2004 and 2005) for a total of USD 87 million and financed 14 MFIs in 9 countries.

Microfinance Information Exchange (MIX) Profile (Indicate if organization does NOT report to MIX)

http://www.mixmarket.org/funders/boms1(external link)

Organization's Website

http://www.blueorchard.com/jahia/Jahia/Products_1/pid/199(external link)

Just the Facts (14 word limit per line)

➢ Year Founded: 2004
➢ Country of Incorporation: US
➢ Legal Status: Limited Liability Company
➢ Fund Assets (as of day/month/year): USD 81.1 million (as of 31/December/2008)
➢ Assets allocated to MFIs (as of day/month/year): USD 74 million (as of 31/December2008)
➢ Area of Operation: global
➢ Number of MFI investments (as of day/month/year): 16 (as of 31/December/2008)
➢ Participant(s)/Backer(s)/Investor(s): Overseas Private Investment Corporation, JP Morgan Securities
➢ Currency: USD
➢ Instrument Type: Loans and Debt Securities
➢ Investment Horizon: 7 years

Contact Information

BlueOrchard Investments
32 rue de Malatrex
1201 Geneva, Switzerland
Tel.: +41 22 596 4750
Fax: +41 22 596 4751

Additional Resources

BlueOrchard Annual Review
http://www.blueorchard.com/jahia/Jahia/pid/324(external link)

The Role of International Capital Markets in Microfinance, By Brad Swanson (January 2008)
http://www.microcapital.org/paper-wrap-up-the-role-of-international-capi...(external link)

Page last modified on Monday 30 of November, 2009 10:41:31 MST