The International Finance Corporation (IFC), a member of the US-based World Bank Group, recently announced agreements to issue loans to two commercial banks in Paraguay, USD 100 million to Banco Continental and USD 25 million to Banco Familiar. Banco Continental has agreed to use its funding to
Category: Deals
MICROCAPITAL BRIEF: Producer of Dolima Dairy Products in Senegal, Laiterie de Berger, Borrows $260k from Grameen Credit Agricole Foundation
Laiterie de Berger, a dairy products producer in Senegal, has received a loan of EUR 229,000 (USD 260,000) in the form of a shareholder’s current account from the Grameen Credit Agricole (GCA) Foundation, whose head office is in Luxembourg. Laiterie de Berger purchases milk from herders
MICROCAPITAL BRIEF: EFSE Lends $10m to OTP Leasing for Rural MSEs in Ukraine
The European Fund for Southeast Europe (EFSE), a Luxembourg-domiciled microfinance investment vehicle, recently issued a loan of USD 10 million to OTP Leasing, which is a unit of OTP Bank JSC, a Ukraine-based member of the Hungary-based OTP Group. The loan is intended to
MICROCAPITAL BRIEF: Grameen Credit Agricole Foundation Lends $900k to ECLOF Kenya for Microfinance Lending
The Grameen Credit Agricole (GCA) Foundation, whose head office is in Luxembourg, has informed MicroCapital that it issued a loan in local currency approximately equivalent to USD 900,000 to ECLOF Kenya, a microfinance institution (MFI) providing “loans for micro enterprise and agriculture [as well as] health, water & sanitation, home improvement, green energy, education and
MICROCAPITAL BRIEF: Grameen Credit Agricole Foundation Lends $340k to Microfinance Institution COOPEC SIFA of Togo
The Luxembourg-based Grameen Credit Agricole (GCA) Foundation recently informed MicroCapital that it has disbursed a loan to Cooperative d’Epargne et de Credit (COOPEC) Soutien aux Initiatives de Femmes pour l’Autopromotion (SIFA) in local currency equivalent to USD 340,000. COOPEC SIFA is a microfinance institution (MFI) based in Dapaong, Togo, that offers savings and
MICROCAPITAL BRIEF: Oikocredit Places $4.7m in Equity in Caravela Coffee to Support “Responsible” Trade in Latin America
Netherlands-based cooperative investor Oikocredit recently closed an investment of USD 4.7 million in UK-based coffee trader Caravela Coffee. Caravela sources its product from approximately 4,000 coffee producers in eight countries in Latin America while seeking to “ensure the price [paid to] farmers is enough to secure their commitment and investment in quality for long-term production in the face of a changing climate and to demonstrate a successful business model for the next generation.” Based on this work, Caravela earned “Best-for-the-world” recognition from B-Corp, “a worldwide movement of more than 2000 companies that meet strict
MICROCAPITAL BRIEF: C-Quadrat Dual Return Vision Microfinance Fund Invests in Varthana, Funder of Educational Institutions in India
The Dual Return Vision Microfinance Fund, which is managed by C-Quadrat Asset Management (AM), recently invested an undisclosed amount of funds in Varthana, an India-based lender to “affordable” private schools, with the aim of improving educational access for children whose families have low incomes. C-Quadrat AM is a member of the Austria-based C-Quadrat Investment Group.
Varthana lends to primary and secondary schools for infrastructure, teacher training and working capital. It also offers management and educational consultancy to school owners. As of 2019, Varthana has secured and
MICROCAPITAL BRIEF: World Bank Lending $200m to Egypt in Effort to Create Jobs by Investing in SMEs
The World Bank recently agreed to lend USD 200 million to the nation of Egypt for a project called “Catalyzing Entrepreneurship for Job Creation.” David Malpass, the President of the World Bank Group, described the project as an effort to support “…the creation of new opportunities for young people and women, along with further progress toward sustainable and inclusive growth.” The project involves
MICROCAPITAL BRIEF: Invest in Visions’ IIV Mikrofinanzfonds Lends $2m to ACME for Microfinance in Haiti
Germany-based Invest in Visions (IIV) recently announced that it has disbursed a loan of USD 2 million to Association pour la Coopération avec la Micro Entreprise (ACME) from its microfinance investment vehicle, IIV Mikrofinanzfonds, which lends to financial institutions in developing countries. This is the second time since
MICROFINANCE BRIEF: UGAFODE of Uganda Borrows $1.1m in Local Currency from Grameen Credit Agricole Foundation for Microfinance
The Grameen Credit Agricole (GCA) Foundation, whose head office is in Luxembourg, recently granted a loan in local currency equivalent to USD 1.12 million to the Uganda Agency for Development Limited (UGAFODE) to support its provision of “affordable financial services” in Uganda. UGAFODE, which was established in 1994 as an NGO, became a
MICROCAPITAL BRIEF: DEG, Equator’s ShoreCap III, Triple Jump Buy Equity in Microfinance Institution BRAC Uganda Bank
Deutsche Investitions-und Entwicklungsgesellschaft (DEG), which is owned by the German federal and local governments as part of the KfW Group; ShoreCap III, a fund of US-based Equator Capital Partners; and Dutch investor Triple Jump recently collaborated to purchase minority equity stakes in BRAC Uganda Bank, a provider of microfinance and other services in Uganda. The sizes
MICROCAPITAL BRIEF: STEP of India Borrows $200k from BNP Paribas for Microfinance Lending
The Sampurna Training and Entrepreneurship Programme (STEP), a nonprofit provider of microfinance and social services in India, recently borrowed INR 14 million (USD 200,000) from BNP Paribas, the France-based bank recently told MicroCapital. STEP, which is based in the city of Kolkata, also borrowed INR 10 million (USD 142,000) from BNP Paribas in 2018.
STEP clients are all women, mainly in urban areas. Established in 2010, STEP “firmly believe[s] that only providing access to finance is not enough for the holistic development of the disadvantaged families.” In addition to loans, it offers skills training, business counseling, health services and social support services. Its loans are designed for business, education, health needs and housing improvement. The business loans range in size from INR 1,000 (USD 14) to INR 50,000 (USD 710), with terms of
MICROCAPITAL BRIEF: Tugende Borrowing $6m for Boda-boda (Motorcycle Taxi) Leasing in Uganda
Tugende, a leasing company in Uganda that specializes in motorcycle taxis, recently agreed to borrow USD 6 million from undisclosed investors to expand its operations. Tugende, which translates as “Let’s Go,” has 10 branches in the country. Since its launch in 2010, it has served 20,000 clients, of whom 8,000 have paid off their “boda-bodas” completely.
The requirements to lease a boda-boda include one year of driving experience, two personal guarantors and
MICROCAPITAL BRIEF: ACEP Burkina Borrows $2.6m from Grameen Credit Agricole Foundation for Microlending
ACEP Burkina, one of the five members of ACEP International, has received a loan approximately equivalent to EUR 2.3 million (USD 2.57 million) from the Grameen Credit Agricole (GCA) Foundation, whose head office is in Luxembourg, to support microlending in Burkina Faso. ACEP Burkina specializes in providing loans to micro- and small enterprises in urban and suburban areas. It was founded in 2012 as a partnership between Investisseurs & Partenaires (I&P),
MICROCAPITAL BRIEF: FMO, Oikocredit Invest $27m in CNG Vehicle Financing Firm Acceso of Peru
The Dutch development bank, which is known by the acronym FMO, recently arranged a local-currency syndicated loan worth USD 27 million in favor of Edpyme Acceso Crediticio, a financier of personal and business vehicles in Peru. The funding, which includes the equivalent of USD 6 million from
MICROCAPITAL BRIEF: Incofin CVSO Loans $3m to Rent2Own, Motorbike Seller in Myanmar
Rent2Own, a company that rents and sells motorbikes in Myanmar, recently borrowed USD 3 million from Incofin CVSO, a cooperative fund managed by Belgium-based Incofin Investment Management. In return for a downpayment as small as 10 percent, a driver may rent a motorbike while she pays to buy it over time. Each contract includes asset and life insurance, and the rider may
MICROCAPITAL BRIEF: Grameen Credit Agricole Foundation Lends $2.2m to Mi-Bospo of Bosnia and Herzegovina for Microfinance Lending
The Grameen Credit Agricole (GCA) Foundation, whose head office is in Luxembourg, has informed MicroCapital that it issued a loan of EUR 2 million (USD 2.2 million) to Mi-Bospo, a microfinance institution (MFI) providing loans to micro- and small businesses in Bosnia and Herzegovina (BiH).
The precursor of Mi-Bospo was launched in 1996 as a program of the nonprofit Bosnian Council for Aid, which also is known as Bospo. Bospo had been formed in 1995 to support post-war reconstruction. Mi-Bospo became an independent entity in 2000.
As of 2019, Mi-Bospo operates in the agriculture, services, production and trade sectors with 32 offices, mainly in northeast BiH. Approximately 64 percent of
MICROCAPITAL BRIEF: Electronica Finance of India Sells $10m in “Masala Bonds” to responsAbility Climate Fund for Lending to Manufacturing SMEs to Cut Greenhouse Emissions
Electronica Finance Limited, a lender to micro-, small and medium-sized enterprises (MSMEs) in India, recently raised the local-currency equivalent of USD 10 million through a bond issue to a fund managed by Switzerland-based responsAbility Investments whose goal is to reduce the impact of people on climate. Electronica, which lends to firms involved in services and manufacturing, will use the funds to facilitate purchases of energy-efficient equipment for creating plastics, machine tools, packaging and