Recent regulatory changes by Kenya’s Insurance Regulatory Authority that require an increase in the capital of insurance companies and the separation of life insurance business from general business could negatively impact the reach and volume of microinsurance in Kenya.
MICROCAPITAL BRIEF: Sa-Dhan, a Microfinance Network in India, Launches Microfinance and Financial Inclusion Magazine “Micro Matters”
Sa-Dhan, a microfinance network in India with total member assets of INR 117 billion (the equivalent of USD 2.6 billion) as of March 2010, has launched a microfinance and financial inclusion magazine entitled “Micro Matters.”
MICROCAPITAL BRIEF: Yemen Microfinance Network (YMN) Holds Official Launch
The Yemen Microfinance Network (YMN), a new network of microfinance institutions in Yemen, recently held its official launch at the Movenpick Hotel in Yemen.
MICROCAPITAL BRIEF: Indian Microfinance Institution Spandana Sphoorty’s Board Actively Evaluating an Initial Public Offering (IPO)
Spandana Sphoorty Financial Limited, an Indian microfinance institution, is evaluating an initial public share offering (IPO) following the recent launch of SKS Microfinance’s IPO, the first IPO by an Indian microfinance institution.
MICROCAPITAL EVENT: C5’s Second Annual Microinsurance Summit, London, UK, September 29-30, 2010
Event Name: Microinsurance Summit, London, UK, September 29-30, 2010
MICROCAPITAL BRIEF: State Bank of India Teams Up with Oxigen Pvt Ltd and Sahyog Microfinance Foundation to Offer Kiosk-based Banking Model
The State Bank of India (SBI) has recently announced that it has entered a partnership with payment service provider, Oxigen Services Private Limited, to offer kiosk-based banking services opening connections directly to SBI’s Core Banking System from existing, internet-ready Oxigen retail locations. The partnership, in conjunction with the SBI business correspondent Sahyog Microfinance Foundation, will use existing Oxigen retailers as customer service points (CSPs) of Sahyog to carry out banking transactions on behalf of the national bank. Sahyog branches, in turn, already function as CPSs of SBI.
MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Provides $1.5m Loan to Bai-Tushum to Support Micro- and Small Enterprises in Kyrgyz Republic
European Bank for Reconstruction and Development (EBRD), an international finance institution headquartered in London, is providing a loan of KGS 67.5 million (USD 1.5 million) to Bai Tushum and Partners, a microfinance institution (MFI) in the Kyrgyz Republic, for on-lending to micro- and small enterprises (MSEs). This constitutes the first of two equal tranches under a KGS 135 million (USD 3 million) loan agreement signed in March 2010. According to EBRD, the transaction is part of a USD 60 million non-bank MFI framework for “Early Transition Countries,” which was approved by EBRD in September 2008.
MICROCAPITAL BRIEF: Belgian Investment Company for Developing Countries (BIO) Loans $4m Each to Prasac and Sathapana, Microfinance Institutions (MFIs) in Cambodia
The Belgian Investment Company for Developing Countries (BIO), established in 2001, recently loaned USD 4 million each to two microfinance institutions (MFIs) in Cambodia: Prasac and Sathapana.
MICROCAPITAL BRIEF: International Finance Corporation (IFC) to Provide $25m to Federal Bank, a Private Commercial Bank in India, to Support Small and Medium-sized Enterprises (SMEs)
The International Finance Corporation (IFC), a member of the World Bank Group, will provide financing of USD 25 million to Federal Bank, a private commercial bank in India, to improve support for small and medium-sized enterprises (SMEs) and to boost international trade opportunities. The deal will “facilitate transactions in challenging markets, promote competitive financing and build bank relationships with new institutions, thereby reducing risk and enabling more smaller businesses to engage in trade.”
MICROCAPITAL BRIEF: Microfinance Consultant, Adam Sorensen, Questions Unitus’ Decision to Cease Microfinance-Related Activities
Microfinance consultant and Seattle native, Adam Sorensen, recently commented on the closure of the nonprofit organization Unitus, which is based in the US city of Seattle. As MicroCapital reported on July 8, 2010, Unitus has recently announced that it will discontinue its microfinance-related activities and will direct its remaining assets to ‘new early-stage, poverty-focused philanthropic activities.’ Mr Sorensen recently commented in the Seattle Times Newspaper about the closure of Unitus’ offices. He argues that Unitus represented a different kind of nonprofit in the microfinance industry, one that advocated for commercial capital. He notes that in 2009 roughly 50 percent of total funding for the microfinance industry came from donors and investors. Given Unitus’ preference for commercial capital, Mr Sorensen asserts that it “promised better results by bringing commercial discipline and business practices cultivated by the leading companies that it often recruited [staff] from.”
MICROCAPITAL EVENT: Microfinance Impact and Innovation Conference, New York, New York, USA, October 21-23, 2010
Event Name: Microfinance Impact and Innovation Conference
Event Date: October 21-October 23, 2010
Event Location: New York, New York.
MICROCAPITAL BRIEF: Andean Development Corporation (CAF) Approves $5m Line of Credit for Caja Rural de Ahorro y Credito (CRAC) Nuestra Gente to Support Micro and Small Enterprises in Peru
The Andean Development Corporation (CAF), a multilateral financial institution working across Latin America, has approved a USD 5 million line of credit for Caja Rural de Ahorro y Credito (CRAC) Nuestra Gente, a microfinance institution in Peru, to finance micro- and small enterprises in Peru. According to Eleonora Silva Pardo, the director of CAF in Peru, the granting of this line of credit is part of CAF’s goal of improving support for the micro- and small enterprise sector in all of Latin America.
MICROCAPITAL BRIEF: Pension Fund Regulatory and Development Authority (PFRDA) Launches NPS-Lite, Program of The National Pension System, to Reach Economically Disadvantaged in India
Pension Fund Regulatory and Development Authority (PFRDA), the apex body established by the government of India to regulate and develop the pension sector, has launched a new offering under the National Pension System (NPS), entitled NPS-Lite, to promote saving among the economically disadvantaged population. The NPS-Lite model is designed to facilitate small investments from the poor via low administrative and transactional costs.
MICROCAPITAL BRIEF: “Ethical Investment: Can it outperform other funds?”: Rob Robbins Examines Performance of Ethical Investments
Rob Robbins, founder of ‘Investing for the Soul,’ a US-based online “ethical investment” magazine, insists ethical investments can outperform their mainstream rivals. Ethical or socially responsible investment is an investment strategy that seeks to maximize both financial return an social good. According to Mr Robbins, “Most studies of ethical or socially responsible investment funds find that their performance is roughly similar or sometimes higher than returns from conventional investments.”
MICROCAPITAL BRIEF: The International Finance Corporation (IFC) Arranges $135m Syndication for Banco Fibra of Brazil in Cooperation with Banco Itau Europa and Banco Santander
The International Finance Corporation (IFC), the private sector arm of the World Bank Group, recently arranged USD 135 million in syndicated lending for Banco Fibra, a Brazilian bank that reported 2009 total assets of BRL 11.8 billion (USD 6.7 billion). The IFC, a 7.9 percent stakeholder in Banco Fibra, raised much of the funds through Banco Itau Europa of Portugal and Banco Santander of Spain. Through this deal, Banco Fibra aims to expand its services for small and medium-sized enterprises (SMEs) in Brazil.
MICROCAPITAL BRIEF: Mexican Microfinance Institution (MFI) Banco Compartamos Releases Non-Audited Financial Results for Second Quarter 2010 Reporting Significant Growth
Mexican microfinance institution (MFI), Banco Compartamos, has announced its non-audited financial results for the quarter ended June 30, 2010 (2Q10). All figures were reportedly prepared in accordance with the requirements of the Comision Nacional Bancaria y de Valores (CNBV) and are expressed in nominal pesos.
MICROCAPITAL BRIEF: South Korea to Investigate Interest Rates Charged by Microfinance Institutions
The South Korean Financial Services Commission, South Korea’s financial industry regulator, announced that it will begin an investigation into the interest rates charged by microfinance institutions on loans and that it will implement corrective action as necessary.
MICROCAPITAL BRIEF: European Investment Fund Implements $32m Guarantee Under the European Progress Microfinance Facility for Employment and Social Inclusion
The European Union (EU) has mandated the European Investment Fund to implement a EUR 25 million (USD 32 million) guarantee under the European Progress Microfinance Facility by issuing guarantees backed by the EU and covering microloans or guarantees supporting microloans.