by the MicroCapital Team -

SPECIAL REPORT: Minimizing Setbacks for Women, Girls Under COVID-19; Taking Advantage of the Pandemic to Liberalize Regulation, Boost Access to Digital Financial Services

Mary European Microfinance PlatformEllen Iskenderian of the US-based NGO Women’s World Banking (WWB) spoke today, the closing day of European Microfinance Week, about the impact of the COVID-19 pandemic on women and girls. Of the challenges they face, she said “COVID didn’t create these gaps, but it shines a bright light on the fissures, and we don’t want to see these grow larger.” As an example, she cited the strides made in recent years in terms of enrolling girls in primary education. She called this the single most powerful tool for creating development impact. However, one of the first things she has seen families in developing countries doing in response to COVID-19 is taking their daughters out of school.

On the positive side, Ms Iskenderian noted “a silver lining, that

by Romil Pandey -

MICROCAPITAL BRIEF: Paraguay Borrows $15m from IDB, Seeking to Boost Productivity Among 8,500 MSMEs

The Inter-American Development Bank (IDB), whose membership comprises 48 nations, recently issued a 24-year loan of USD 15 million to the government of Paraguay with the goal of increasing the productivity of 8,500 micro-, small and medium-sized enterprises (MSMEs). Paraguay plans to use the funds for technology innovation and a national network of “productivity centers” providing

by Romil Pandey -

MICROCAPITAL BRIEF: Banco W Issuing $40m “Social Bond,” Funded by IDB Invest to Promote Gender Equity in Colombia via Microfinance

IDB Invest, a member of the US-based Inter-American Development Bank (IDB) Group, recently subscribed to a four-year bond of COP 150 billion (USD 39.6 million) to be issued by Banco W, a Colombian credit institution. The funds are slated to reach 25,000 female-led microenterprises and support the “development of the capital markets and thematic bonds in Colombia.” The bond is registered with the Colombian Stock Exchange, and IDB Invest describes it as

by Romil Pandey -

MICROCAPITAL BRIEF: BizCapital, Fintech Promoting SMEs in Brazil, Raises $15m in Equity

BizCapital, a Brazilian provider of digital loans to small and medium-sized enterprises (SMEs), recently raised USD 15 million during its Series B fundraising round. The investors include Brazil-based 42K Investimentos, Brazil’s Chromo Invest, Germany-based Deutsche Investitions- und Entwicklungsgesellschaft (DEG),

by Romil Pandey -

MICROCAPITAL BRIEF: KfW, BMZ Investing $47m in Farmers, Processors in Africa, Latin America via Debt Fund Managed by Incofin: Agri-Finance Liquidity Facility

The German Federal Ministry for Economic Cooperation and Development, which is also known by its German acronym BMZ, recently launched the Agri-Finance Liquidity Facility (ALF), a debt facility of EUR 40 million (USD 46.7 million), to support the “sustainable agri-food value chain” in

by the MicroCapital Team -

SPECIAL REPORT: Student Lending for Tertiary Education: Omtrix Offers Lessons Learned from 10 Years of HEFF

The OmtrixThe Higher Education Finance Fund (HEFF) was implemented in seven Latin American countries with the objective of improving access to tertiary education for motivated yet socially disadvantaged young people. It was promoted by Omtrix, Inc., a consulting and fund man­agement company based in Costa Rica. HEFF’s equity investors were the German development bank KfW, the Norwegian Investment Fund for Developing Countries (Norfund), the Swiss Investment Fund for Emerging Markets, the Luxembourg Finance and Development Fund, Corporación Andina de Fomento, Omtrix and the Calvert Social Investment Foundation.

HEFF was premised on the idea that student loans are an intrinsically viable product for financial institutions (FIs) with social objectives. The experience of HEFF confirmed the validity of this notion, provided that

by Romil Pandey -

MICROCAPITAL BRIEF: Canada’s Desjardins Group Launches Aequitas Fund with $38m to Advance UN Sustainable Development Goals Including Gender Equity, Climate Change Readiness

The Canadian cooperative Desjardins Group recently invested CAD 50 million (USD 37.9 million) to create the Aequitas fund, a private investment fund aimed at achieving gender equality, advancing climate change solutions and meeting other UN Sustainable Development Goals (SDGs). The fund will promote financial inclusion through provision of

by Romil Pandey -

MICROCAPITAL BRIEF: Edgar Martinez Named CEO of VisionFund International, Provider of Microfinance in 28 Countries

In January 2021, Edgar Martinez will take the positions of President and CEO at VisionFund International (VFI). The organization, which is owned by US-based NGO World Vision, provides microfinance services

by Nathan Kiplagat -

MICROCAPITAL BRIEF: Eco-Business Fund, IFC to Loan $40m to Banco Agromercantil (BAM) to Help MSMEs in Guatemala Manage COVID-19 Pandemic

The International Finance Corporation (IFC), a member of the World Bank Group, recently agreed to lend Banco Agromercantil (BAM), a subsidiary of Colombia-based Grupo Bancolombia, USD 20 million, thus mobilizing an equal amount from the Eco-Business Fund, which is domiciled in Luxembourg. BAM is to use the liquidity to support

by Nathan Kiplagat -

MICROCAPITAL BRIEF: UNCDF, Women’s World Banking Partner on Digital Financial Inclusion for Women

The UN Capital Development Fund (UNCDF) and the US-based nonprofit Women’s World Banking (WWB) recently launched a strategic partnership to increase “access to digital financial services for women and girls, specifically in emerging markets and least developed countries.” The goals include to boost

by Kate Finster -

MICROCAPITAL BRIEF: Brazil Loosens Eligibility Requirements, Streamlines Online Microloan Application to Assist Small Businesses During COVID-19 Pandemic

Brazil’s Conselho Monetário Nacional (CMN), the country’s National Monetary Council, recently raised the revenue limit for firms to be eligible for microloans in an effort to assist more small businesses struggling as a result of the COVID-19 pandemic. The maximum income had been

by Madigan Ruch -

MICROCAPITAL BRIEF: IFC Lending Banco Agricola $330m for Women, MSMEs, “Climate-smart” Investments, COVID-19 Relief in El Salvador

The International Finance Corporation (IFC), a member of the World Bank Group, recently issued a financing package of USD 330 million to Banco Agricola of El Salvador to support micro-, small and medium-sized enterprises (MSMEs), including those owned by women; housing for people with lower incomes; and “climate-smart” investments, including in buildings with lower environmental impacts. About 10 percent of the funding is

by Nathan Kiplagat -

MICROCAPITAL BRIEF: IDB Loans $750m to BNDES to Support MSMEs in Brazil During COVID-19 Pandemic

The Inter-American Development Bank (IDB), whose membership comprises 48 nations, recently loaned USD 750 million to Banco Nacional de Desenvolvimento Econômico e Social (BNDES), the Brazilian government’s development bank, to support micro-, small and medium-sized enterprises (MSMEs) in Brazil that have seen significant drops in revenue during the COVID-19 pandemic. The loan is expected to enable

by the MicroCapital Team -

MICROCAPITAL BRIEF: Higher Education Finance Fund (HEFF) Closing After 10 Years of Lending for Students in Latin America, Caribbean

The Higher Education Finance Fund (HEFF), which was launched in 2011 by Costa Rica-based Omtrix, recently completed disbursing its volume of USD 30 million to microfinance institutions (MFIs) serving low-income households in Latin America and the Caribbean. The objective of the fund, which reached seven countries, was to support youth in accessing higher education as well as assisting in the diversification of

by Nathan Kiplagat -

MICROCAPITAL BRIEF: Fintech Supersim Raises $6m in Debt for Microfinance in Brazil

Supersim Análise de Dados e Correspondente Bancário, a Brazilian financial technology (fintech) startup, recently entered into a securitized debt agreement with a cap of BRL 30 million (USD 5.7 million), arranged by Navi, a Brazil-based asset manager. The source or sources of the funds remain confidential. This is the first time Supersim

by Nathan Kiplagat -

MICROCAPITAL BRIEF: Fundacion Kodea of Chile Wins $100k JK Visionaries Award from IDB for Training Women, Youth in Technology Skills

The Inter-American Development Bank (IDB), whose membership comprises 48 nations, recently announced that Fundacion Kodea of Chile is the first-place winner of the 2019-2020 JK Visionaries Award. The award is for organizations that are successful in

by Kate Finster -

MICROCAPITAL BRIEF: IIV Mikrofinanzfonds Lends $32m to Refinance Microfinance Institutions in El Salvador, Panama

Invest in Visions (IIV) Mikrofinanzfonds, a fund managed by Germany-based IIV, recently purchased non-securitized loan claims totaling USD 31.7 million from microlenders in Central America, allowing them to refinance a portion of their portfolios. The microfinance institutions (MFIs),

by Romil Pandey -

MICROCAPITAL BRIEF: Contrary to COVID-19 Predictions, Mexico, Nepal Report Increases in Remittances

Contrary to many observers’ predictions regarding the economic effects of the COVID-19 pandemic, residents of Nepal and Mexico have received increasing amounts of remittances from workers living abroad. During July 2020, USD 3.5 billion in remittances was sent to Mexico, a 7-percent increase from one year earlier. This July 2020 figure is the third-highest