MICROCAPITAL BRIEF: Grameen Credit Agricole Microfinance Foundation Loans $936k to Jordan’s Microfund for Women, $1.7m to Georgia’s JSC MFO Crystal

The Grameen Credit Agricole Microfinance Foundation (GCAMF), a Luxembourg-based provider of financial services to microfinance institutions (MFIs) and other social businesses, recently informed MicroCapital that it has issued the following two loans: (1) EUR 825,000 (USD 936,000) to Microfund for Women, a microfinance institution (MFI) in Jordan that was founded in 1994 as a program of UK-based NGO Save the Children; and (2) EUR 1.5 million (USD 1.6 million) to Joint Stock Company Microfinance Organization Crystal (JSC MFO Crystal), an MFI that was established in Tbilisi, Georgia, in 1998 as the Crystal Fund. Continue reading

MICROCAPITAL EVENT: Social Performance Task Force Social Investor Working Group Meeting; March 11-12, 2015; Luxembourg

Event Name: Social Investor Working Group Meeting

Event Date: March 11 – March 12, 2015

Event Location: European Investment Bank (EIB) Headquarters, Luxembourg.

Cost: The event is free of charge, however the proceedings on March 11 are only open to task force members. The sessions on March 12 are open to all investors.

Summary of Event: Conference attendees will discuss topics such as managing social risks; the “Universal Standards for Social Performance Management”; and the fourth iteration of the social performance indicators (SPI4), which have been developed by France-based network Cerise (Comité d’Echanges de Réflexion et d’Information sur les Systèmes d’Epargne-crédit). Continue reading

MICROCAPITAL BRIEF: Triodos Investment Management Disburses Loans to Micro-, Small, Medium-sized Enterprise (MSME) Lenders in Cambodia, Colombia, India, Jordan, Uzbekistan

Triodos Investment Management, a subsidiary of Netherlands-based Triodos Bank, recently disbursed loans of undisclosed amounts to Annapurna Microfinance, an Indian microfinance institution (MFI); Asociacion Fondo de Desarrollo (FDL), an MFI in Nicaragua; Crezcamos, a Columbian MFI; Hamkorbank, a commercial bank in Uzbekistan; Intean Poalroath Rongroeurng (IPR), an MFI in Cambodia; Intellegrow, a nonbanking financial company (NBFC) serving small and medium-sized enterprises (SMEs) in India; and Vitas Jordan, an Amman-based MFI [1]. Continue reading

MICROCAPITAL BRIEF: Manappuram of India Acquires 70% Stake in Asirvad Microfinance of India for $21m

Manappuram Finance, an India-based non-banking finance company, recently acquired 70 percent of the shares of Asirvad Microfinance, a microfinance company based in India that provides enterprise loans, for INR 136 crores (USD 21.4 million). Manappuram will acquire the shareholding via a combination of purchasing shares from existing shareholders and subscribing to new equity shares of Asirvad. Continue reading

MICROCAPITAL BRIEF: Grameen Credit Agricole Microfinance Foundation Loans $1.6m to Hattha Kaksekar Limited of Cambodia, $1.2m to Sri Lanka’s VisionFund Lanka

The Grameen Credit Agricole Microfinance Foundation (GCAMF), a Luxembourg-based provider of financial services to microfinance institutions (MFIs) and other social businesses, recently informed MicroCapital that it has issued the following two loans: (1) EUR 1.5 million (USD 1.6 million) to Hattha Kaksekar Limited (HKL), an MFI based in Cambodia that was founded in 1994 by Organisation Canadienne pour la Solidarite et le Developpement (OCSD) and Oxfam International; and (2) EUR 1.1 million (USD 1.2 million) to VisionFund Lanka, a unit of US-based VisionFund, which offers financial services to families living in poverty in the developing world through a network of MFIs in 36 countries. Continue reading

MICROCAPITAL BRIEF: Grameen Crédit Agricole Microfinance Foundation Loans $1.2m to Oxus DRC, DRC’s Hekima, Burkina Faso’s ACFIME

The Grameen Crédit Agricole Microfinance Foundation (GCAMF), a Luxembourg-based provider of financial services to microfinance institutions (MFIs) and other social businesses, recently informed MicroCapital that it has issued the following three loans: (1) EUR 630,000 (USD 732,000) over a two-year period to Oxus DRC, a for-profit MFI based in the Democratic Republic of the Congo (DRC) that was launched in 2013 by the France-based Oxus Group; (2) EUR 271,000 (USD 314,000) over a three-year period to Hekima, a nonprofit specialising in providing group loans to “economically active” poor people in eastern DRC; and (3) EUR 198,000 (USD 230,000) over a three-year period to Agence Communautaire pour le Financement de la Micro Entreprise (ACFIME), a microfinance institution serving low-income populations in Burkina Faso [1]. Continue reading

MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $11.6m to UniCredit Bank Serbia for Housing Purchases, Improvements

The European Fund for Southeast Europe (EFSE), a Luxembourg-based microfinance investment vehicle (MIV), recently announced that it is loaning EUR 10 million (USD 11.6 million) to UniCredit Bank Serbia, a subsidiary of Italy-based financial services company UniCredit Group, for on-lending for housing purchases and home improvement projects. Continue reading

MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $34.6m to Garanti Leasing for On-lending to Micro-, Small Enterprises in Turkey; Banca Intesa Beograd (BIB) for Agriculture in Serbia

The European Fund for Southeast Europe (EFSE), a Luxembourg-based microfinance investment vehicle (MIV), recently extended loans to Garanti Leasing (GL), a leasing subsidiary of Turkey’s Garanti Bank (GB), and Banca Intesa Beograd (BIB), a commercial bank in Serbia that is part of Italy’s Intesa Sanpaolo. Continue reading

MICROCAPITAL BRIEF: Grameen Crédit Agricole Microfinance Foundation Loans $1.2m to Kenya’s Juhudi Kilimo, Uganda Microcredit Foundation (UMF), Uganda’s Encot

The Grameen Crédit Agricole Microfinance Foundation (GCAMF), a Luxembourg-based provider of financial services to microfinance institutions (MFIs) and other social businesses, recently informed MicroCapital that it has issued the following three loans in local currency equivalent to: (1) EUR 482,000 (USD 555,000) over a two-year period to Juhudi Kilimo, a for-profit provider of microloans and microinsurance in Kenya; (2) EUR 293,000 (USD 339,000) over a three-year period to Uganda Microcredit Foundation (UMF), a microfinance institution offering financial services to “economically active” Ugandans; and (3) EUR 257,000 (USD 297,000) over a three-year period to Encot, a provider of microloans to rural enterprises in Uganda [1].  Continue reading

MICROCAPITAL BRIEF: Muthoot Finance, FIS to Bring Automated Teller Machines (ATMs) to Rural India

Muthoot Finance, an Indian non-banking finance company (NBFC) that offers money transfers and loans using gold items as collateral, recently partnered with Fidelity National Information Services (FIS), a US-based banking and payment technology provider, to introduce Muthoot-branded automated teller machines (ATMs) in rural areas of India. Continue reading

MICROCAPITAL BRIEF: Swaziland Ministry of Finance to Develop Credit Information Sharing Program as Plan to Increase Financial Inclusion to 75% by 2022

Swaziland’s Ministry of Finance reportedly will launch a program to protect Swazi consumers from over-indebtedness by making consumer credit information available to all credit providers in the country, including development finance institutions, microlenders, savings cooperatives and retailers [1]. Another aim of the effort is to lower the cost of credit to support a government effort to increase financial inclusion in the country from 50 percent in 2011 to 75 percent by 2022 [2]. The principal secretary in the Ministry of Finance, Bheki Bhembe, reportedly said that “The project aims to strengthen credit information flow in Swaziland. By so doing, the project aims to increase access to affordable credit among the under-served market segments.” Continue reading

MICROCAPITAL BRIEF: Utkarsh Micro Finance, Advans SA Land $24m in Equity from CDC, Lok Capital, Aavishkaar Goodwell India, International Finance Corporation, Norwegian Microfinance Initiative

The Commonwealth Development Corporation (CDC), a development finance institution owned by the UK government, has announced that it has made an equity investment of USD 11 million in Utkarsh, a northern Indian microfinance institution (MFI) [1]. Continue reading

MICROCAPITAL BRIEF: Triodos Investment Management Invests in Tunisia’s Enda Inter-Arabe, Uganda’s Entrepreneurs Financial Centre

Triodos Investment Management, a subsidiary of Netherlands-based Triodos Bank, recently disbursed loans of unspecified sizes to Enda Inter-Arabe, a Tunisian financial services provider that is part of Senegal-based non-governmental organization Enda Third-World, and Entrepreneurs Financial Centre (EFC) Uganda, a microfinance institution that provides financial services to micro-, small and medium-sized enterprises (MSMEs).  Continue reading

MICROFINANCE PAPER WRAP-UP: Exploring New Frontiers – The Potential of Impact Investments in Microinsurance

By Jeremy Leach, Sandisiwe Ncube and Anand Menon; published by the Microinsurance Network; 2014; 49 pages; available at http://www.microinsurancenetwork.org/sites/default/files/MICRO_NetworkInvestor_PaperWEB.pdf

Microinsurance, a risk mitigation and management tool for people with low incomes, has grown from 78 million lives covered in 2005 to approximately 263 million lives in 2013, with a potential market estimated at 3 billion to 4 billion policies generating USD 30 billion to USD 50 billion in annual premium revenue. Total demand for microinsurance is growing approximately 10 percent per year, which the authors argue points to increasing investment opportunities and a promising business case for investors. Continue reading

MICROCAPITAL BRIEF: Nestlé Dominican Republic, Multilateral Investment Fund, Asociación Dominicana para el Desarrollo de la Mujer (ADOPEM) to Develop Microfranchise Distribution Project in the Dominican Republic

The Multilateral Investment Fund (MIF), a member of the US-based Inter-American Development Bank (IDB), recently announced that it has partnered with Asociación Dominicana para el Desarrollo de la Mujer (ADOPEM), a microfinance institution (MFI) in the Dominican Republic, and Nestlé Dominican Republic, a unit of the Switzerland-based multinational food and beverage company, to develop a project that will give low-income women in the country an opportunity to operate micro-franchises to distribute Nestlé products in their communities [1]. Continue reading

MICROCAPITAL BRIEF: Triodos Sustainable Trade Fund Opens $2m Credit Line for Thai Organic Rice Company Urmatt, Cocoa Producer ICAM Uganda

The Triodos Sustainable Trade Fund, which provides trade finance loans to co-operatives and private companies operating in “sustainable” agricultural value chains, recently opened a credit line for Urmatt Limited, a Thai company producing and processing certified organic rice, and ICAM Chocolate Uganda Limited, a subsidiary of the Italian firm Industria Cioccolato e Affini Morbegno (ICAM) that sources organically grown green cocoa beans directly from local farmers in Uganda. The funding, which is capped at USD 2 million [3], is intended to enable these two companies to pay “fair” prices to farmers and improve their cash flow management [1]. Continue reading

MICROCAPITAL BRIEF: European Bank for Reconstruction and Development Loans $114m to Finansbank for Women Entrepreneurs in Turkey, Bank CenterCredit (BCC) for Micro-, Small, Medium-Sized Enterprises in Kazakhstan

The European Bank for Reconstruction and Development (EBRD), a multilateral financial institution headquartered in England, recently extended loans to Finansbank, a commercial bank in Turkey that is a subsidiary of the National Bank of Greece Group, and Bank CenterCredit (BCC), a Kazakhstan-based joint stock company. Continue reading