The Asian Development Bank (ADB), an international development organization based in Manila, Philippines, announced that it will be making an equity investment of up to USD 10 million in Shorecap II Fund (SCII), the successor to Shorecap International (SCI), a microfinance investment vehicle (MIV) established in 2003. Shorecap II will purchase minority stakes in microfinance institutions (MFIs) and small banks in Africa and Asia that focus on under-served populations. Each investment is expected to be between USD 2 million and USD 10 million. ADB’s contribution will be used only for ventures in its developing member countries including Bangladesh, the People’s Republic of China (PRC), India, Indonesia, Pakistan, the Philippines, Sri Lanka, Thailand and Vietnam. The Microfinance Information Exchange (MIX), the microfinance clearinghouse, reported total fund assets for Shorecap International of USD 28 million in 2007. No financial data is available on the MIX for Shorecap II [1].
By Julie Moksim, Research Associate
About the Asian Development Bank (ADB): Established in 1966 and headquartered in Manila, Philippines, ADB is a regional development bank that consists of sixty-seven members, of which forty-eight are based in the region. ADB has three strategic agendas: to foster inclusive growth, to facilitate regional integration and to ensure environmentally sustainable growth. To accomplish these objectives, ADB uses loans, technical assistance programs, grants and direct assistance in the form of equity investments, guarantees and credit to private companies in member countries. ADB reported a total capitalization of USD 56 billion as of December 31, 2009.
About Shorecap II Fund (SCII): Shorecap II is a private equity fund that was established to make investments in microfinance institutions (MFIs), small business banks (SBBs) and nonbank financial institutions (NBFIs) that provide financial services and offer financial products to micro- and small entrepreneurs in Africa and Asia. The fund’s mission is to contribute to the alleviation of poverty by increasing access to financial services and improving financial institutions. Shorecap II is a successor to Shorecap International (SCI), a microfinance investment vehicle (MIV) that was launched in 2003. Shorecap II does not report financial data to the Microfinance Information Exchange (MIX), the microfinance clearinghouse.
About Shorecap International (SCI): ShoreCap International was launched in 2003 by ShoreBank Corporation. It is an international private equity company that invests in small business banks and regulated microfinance institutions (MFIs) in developing and transitional countries. Shorecap International also coordinates with its affiliate, CapitalPlus Exchange (formerly ShoreCap Exchange), a not-for-profit unit specializing in technical assistance and capacity building, in support of its operations in Africa, Asia and Eastern Europe. The Microfinance Information Exchange (MIX), the microfinance clearinghouse, reported total fund assets for Shorecap International of USD 28 million in 2007.
[1] Asian Development Bank (ADB): “ADB Invests in Fund to Expand Microfinance, Small Business Lending.”,
http://www.adb.org/Media/Articles/2010/13430-asian-microfinance-lendings/
MicroCapital’s Microfinance Universe Profile: Asian Development Bank (ADB)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Asian+Development+Bank+(ADB)
MicroCapital’s Microfinance Universe Profile: Shorecap II Fund (SCII)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ShoreCap+II+Fund+(SCII)
MicroCapital’s Microfinance Universe Profile: Shorecap International (SCI)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ShoreCap+International+(SCI)
Microfinance.org Article, February 2, 2010: CDC Group Invests $10m in Shorecap’s SCII Microfinance Fund for Africa and Asia, https://www.microcapital.org/microcapital-brief-cdc-group-invests-10m-in-shorecap%E2%80%99s-scii-microfinance-fund-for-africa-and-asia/
Browse the MicroCapital Universe and add your entry to the wiki at:
https://www.microcapital.org/microfinanceuniverse/
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