MICROCAPITAL BRIEF: CARD MRI to Borrow Up to $15m from IFC, Mainly to Support Women’s MSMEs During COVID-19 Pandemic

The International Finance Corporation, the private-investment arm of the World Bank Group, recently agreed to provide up to PHP 750 million (USD 15 million) of debt financing to the Center for Agriculture and Rural Development – Mutually Reinforcing Institutions Group (CARD MRI) to support micro-, small and medium-sized enterprises (MSMEs) during the COVID-19 pandemic. The investment will go through the banking entities of CARD MRI, CARD Bank and CARD Bank SME, which together have approximately 4 million customers and 120 branches. Ultimately, the goal is to reach 60,000 businesses with the investment, primarily women-owned and women-led MSMEs.

The 22 units of CARD MRI provide access for low-income individuals to educational, healthcare, microinsurance and other financial assistance. CARD Incorporated, the first CARD member, was established in 1986 as a social development foundation. As of 2018, CARD MRI has 3,380 locations in the Philippines plus liaison offices in four nearby countries. During the same year, the accomplishments of its 17,000 employees included insuring 25 million individuals and servicing 3.3 million active loans.

IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2019, IFC reports total assets of USD 94.3 billion.

The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2021, it has 189 member nations. The group encompasses: (1) IFC; (2) the International Bank for Reconstruction and Development and the International Development Association, which make up the World Bank; (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes. During 2018, the World Bank Group committed USD 66.9 billion of funding to partner countries.

By Sai Bommineni, Research Associate

Sources and Additional Resources

IFC press release
https://pressroom.ifc.org/all/pages/PressDetail.aspx?ID=26138

CARD MRI homepage
https://www.cardmri.com

IFC homepage
https://www.ifc.org

World Bank Group homepage
https://www.worldbank.org

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