Micro Finance Bank of Azerbaijan (MFBA), a central Asian and eastern European microfinance institution (MFI), has issued USD 11.4 million in bonds to international capital investors. Developing World Markets (DWM), a US-based asset management firm, sponsored and arranged the investment deal, which took place in Luxembourg, through a specially created investment vehicle titled MFBA Bond I. The debt accrued by MFBA through the bond issuance has been categorized as senior debt, with a five-year term for repayment. MFBA will use the loaned capital to finance micro loans for Azeri small businesses. Continue Reading »
MICROCAPITAL STORY: Micro Finance Bank of Azerbaijan (MFBA) Issues Bonds Worth USD 11.4m Through Developing World Market’s (DWM) Management to Finance Microfinance Operations
MICROCAPITAL STORY: Unmet Demand for Microfinance Inhibiting Economic Growth of Russia’s Urban and Rural Poor
A recent article from the Inter Press Service (IPS), an independent news agency focused on the developing world, reveals Russia’s micro-entrepreneurs and micro-businesses are not receiving the capital they need to grow. The article indicates microfinance institutions (MFIs) are only supplying 15 percent of an estimated USD 8 billion in micro-business demand. Furthermore, formal banking institutions are supplying just 20 percent of the USD 22 billion needed by small and medium-sized enterprises. Continue Reading »
MICROCAPITAL STORY: Bangladesh Commemorates Nobel Prize Winner and Microfinance Pioneer Mohammad Yunus on Postage Stamp
Bangladesh Chief Adviser Dr. Fakhruddin Ahmed Wednesday formally released a commemorative postage stamp along with a first day cover (An envelope with a stamp canceled on its first day of sale) on Professor Muhammad Yunus and Grameen Bank for winning the Nobel Prize October of last year. Continue Reading »
PRESS RELEASE: Inter-American Development Bank Fund Approves USD 890,000 for Social Entrepreneurship Program in Guatemala
MICROCAPITAL STORY: European Union (EU) partners with Cameroon Chamber of Commerce (CCIMA) to Conduct Study on How to Implement Better Funding Mechanisms For Very Small and Small Enterprises (VSSEs)
The Cameroon Chamber of Commerce for Industry, Mines and Artisans (CCIMA) has begun working with the African Caribbean Pacific Business Climate Facility (BizClim), an initiative funded by the European Union (EU), on a study that will attempt to identify new mechanisms for funding very small and small enterprises (VSSEs) in the West African country. FOGAMU, a Cameroonian mutual guarantee fund that caters to this category of enterprises, and the National Association of Cameroonian Microfinance Institutions (ANEMCAM), an organization with the objective to further develop the microfinance industry in Cameroon, will also be involved in the execution of the study. Continue Reading »
PRESS RELEASE: Inter-American Development Bank’s Multilateral Investment Fund Approves USD 1 Million for a Procurement Support Program for Micro, Small and Medium-sized Enterprises in El Salvador
MICROCAPITAL STORY: Nearly Half of All Indians are Unbanked with no Access to Microfinance, According to Reserve Bank of India
As India celebrates 60 years of independence, Usha Thorat, Deputy Governor, Reserve Bank of India (RBI) revealed that 40% of Indians do not have a bank account. Mr Thorat was speaking at the Financial Inclusion Conference 2007 in London, UK in June 2007.
The RBI, which is India’s central bank, collated nationwide data which showed that just 59% of adults have a bank account, assuming that every person has only one account. In fact the number could be far lower as the likelihood is that some individuals have multiple accounts. Continue Reading »
MICROCAPITAL STORY: ResponsAbility Global Microfinance Fund of Switzerland Loans over USD 1.1 Million to Unión de Crédito Interestatal Chiapas (Unicreich) of Mexico and PRESTANIC of Nicaragua
Here is yet another story coming courtesy from the latest issue of the Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse. ResponsAbility Global Microfinance Fund has made a series of loans totaling over USD 1.1 million to two Latin American microfinance institutions (MFIs). The two MFIs—Unión de Crédito Interestatal Chiapas (Unicreich) and PRESTANIC—received USD 462,800, USD and USD 500,000, respectively. The loans took place in July of this year, two of the seven loan investments undertaken by the microfinance fund. The Latin American loans consist of 13.3 percent of the fund’s July microfinance investments, which totaled over USD 7.2 million. Continue Reading »
MICROCAPITAL STORY: Dun & Bradstreet to Run Nigeria’s First Credit Bureau, with Support of The International Finance Corporation, Accenture and Nine of Nigeria’s Leading Banks.
Nigeria is setting up its first credit bureau in an attempt to improve transparency, reduce fraud and enhance access to financial services to poorly served segments of the market. It will officially be called the Credit Reference Company (CRC).
Nine Nigerian banks have set up the bureau in partnership with Dun & Bradstreet, a global credit information provider, who have experience in running private credit bureaux in emerging markets. Accenture, a global management consulting, technology services and outsourcing company, and the International Finance Corporation (IFC), the private sector arm of the World Bank are supporting with technical and advisory services. Continue Reading »
MICROCAPITAL STORY: European Bank for Reconstruction and Development (EBRD) and Citigroup Loan USD 16.4 Million to ACBA-Credit Agricole Bank in Armenia
This is another story coming courtesy from the latest issue of the Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse. ACBA-Credit Agricole Bank (ACBA), an Armenian microfinance institution (MFI), has received two loan investments totaling over USD 16.4 million. The European Bank for Reconstruction and Development (EBRD), a UK-based international financial institution, provided half of the investment in a USD 8.2 million loan. Citigroup has matched EBRD’s USD 8.2 million loan, however lent ACBA the finances through EBRD’s A/B loan structure. According to the EBRD website, the A/B loan structure allows EBRD to sign off as the official lender of record, while Citigroup receives the lender’s benefits that would have otherwise gone to EBRD. The combined loans add to ACBA’s gross loan portfolio of 90.4 million, an increase of 18.1 percent. ACBA now has over USD 158.5 million in total assets (see “Financial Data”). Continue Reading »
MICROCAPITAL STORY: IMAGE Project in South Africa Proposes Use of Microfinance in Struggle Against HIV/AIDS Infection
Under the direction of Dr. Paul Pronyk, Director of RADAR(Rural Aids and Development Action Research Programme), IMAGE (Intervention with Micro Finance for Aids and Gender Equity), “a community- based structural intervention for HIV prevention,” was founded in 2001. The project is a collaborative effort supported by Small Enterprise Foundation(SEF), a microfinance non-governmental organization, University of the Witswatersrand (Wits), the London School of Hygiene and Tropical Medicine, and the Department of Health. IMAGE provides women with short term business loans of up to USD 1300 operating on the presumption that an increase in earning power will encourage women to be more vocal at home, confronting unfaithful husbands about issues such as condom usage. Continue Reading »
MICROCAPITAL STORY: Citi Foundation and Pakistan Poverty Alleviation Fund Announce 2007 Micro-entrepreneurship Awards Program in Pakistan to Highlight Microfinance
The Pakistan Poverty Alleviation Fund (PPAF), a Pakistani organization dedicated to assisting poor and rural communities in Pakistan, and Citi Foundation, a philanthropic outreach arm of Citigroup, announced they will hold for the third consecutive year an awards program dedicated to micro-entrepreneurship. The program, “Citi-PPAF Microentrepreneurship Awards Programme 2007,” will recognize the efforts made by micro-entrepreneurs to improve the quality of life for their families and their communities. It is designed to demonstrate the impact of microfinance on micro-entrepreneurs and poverty reduction. Continue Reading »
MICROCAPITAL STORY: ACCION International Gateway Microfinance Infrastructure Fund Invests in Rural Internet Service Provider United Villages
Through its Gateway Microfinance Infrastructure Fund (GMI), ACCION International, a private, nonprofit organization with 35 microfinance institution (MFI) partnerships worldwide, has announced an unspecified investment in United Villages, Inc., a rural Internet Service Provider which provides people in the developing economies a voicemail box, an email address, and Internet access for less than $1 per person. Continue Reading »
Source: Trend Capital
Article available here.
The Microfinance Bank of Azerbaijan (MFBA) has launched a loan product for people whose business is related to agriculture. The new product is basically assigned for farmers and farm workers. The project has been worked on for quite a long period and the MFBA has already started disbursing loans in the regional branches in Sheki and Lenkoran. Continue Reading »
MICROCAPITAL STORY: The Gulf’s First of its Kind Microfinance Institution, Innovation Bank, Launches in Bahrain
As an effort to help the small and medium size enterprises (SMEs) in Bahrain as well as across the region, the United Nations Industrial Development Organization has initiated the set up of a new microcredit bank, Innovation Bank, which is scheduled to commence operations sometime later this year. Continue Reading »