Morgan Stanley, a US-based global financial services firm that provides products and services to corporations, governments, financial institutions and individuals, has announced it will form a Microfinance Institutions Group (MFIG) to provide investment banking services to microfinance institutions (MFIs) as well as microfinance networks and other market participants. Services will include corporate advice, debt/equity capital, foreign exchange and derivative products and risk management services. The Morgan Stanley MFIG will structure and distribute microfinance investment funds as well. The MFIG will be based in London and New York with global operations.
The group will have 12 professional staff members representing nine nationalities and 11 languages. In addition to expertise in developed global capital markets, members of the group have development finance/microfinance experience in Africa, Asia, Europe and Latin America. The group will be led by Ian Callaghan who reports to Ellen Brunsberg, head of Morgan Stanley’s European Securitized Products Group.
The formation of the group comes as a natural progression stemming from Morgan Stanley’s recent work in the microfinance industry. In March 2006, Morgan Stanley and BlueOrchard Finance, a microfinance fund investment company issued a USD 106 million bond backed by loans to MFIs. In May 2007, Morgan Stanley and BlueOrchard issued another USD 108 million equivalent in bonds to finance 13 MFIs globally.
Morgan Stanley’s press release can be viewed on the Microfinance Gateway at http://www.microfinancegateway.org/files/43258_file_MFIGAnnouncement07Sep07.pdf.
Additional Resources:
Morgan Stanley: http://www.morganstanley.com/
MicroCapital.org article, March 7, 2006: Microfinance Makes Push for Funding Through Mainstream Capital Markets As BlueOrchard Announces $106 Million Bond
MicroCapital.org article, February 12, 2007: Who’s Who in Microfinance: BlueOrchard Microfinance Investment Managers
MicroCapital.org article, May 9, 2007: Morgan Stanley and BlueOrchard Finance Launche USD 108mm Bond Backed by Microfinance Loans
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