US-based financial service provider Citigroup recently informed MicroCapital that it has issued a local-currency loan equivalent to USD 2 million to Tamweelcom, a Jordanian nonprofit microfinance institution (MFI), to support the growth of its loan portfolio. “Through this partnership, Tamweelcom hopes to support its growing number of clients and develop its outreach,” said the executive director of Tamweelcom, Mr Ziad Al Refai.
The loan is part of a USD 350 million partnership between Citigroup and the US government-backed Overseas Private Investment Corporation (OPIC) that is aimed at promoting the growth of microfinance in emerging markets. “We are pleased to support Tamweelcom in its social mission to provide client focused financial and non-financial services, mainly to women, to expand financial inclusion in Jordan,” said Bob Annibale, Citigroup’s global director of microfinance.
As of December 31, 2011, Tamweelcom reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 27 million, a gross loan portfolio of USD 25.4 million, approximately 46,500 active borrowers, return on assets (ROA) of 6.0 percent and return on equity (ROE) of 16.0 percent. The institution does not accept deposits.
By Nicole Boyd, Research Associate
About Jordan Micro Credit Company (Tamweelcom)
Established in 1999, Tamweelcom is a nonprofit microfinance institution (MFI) based in Jordan. As of December 31, 2011, Tamweelcom reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 27 million, a gross loan portfolio of USD 25.4 million, approximately 46,500 active borrowers, return on assets (ROA) of 6.0 percent and return on equity (ROE) of 16.0 percent. The institution does not accept deposits.
About Citi
Citigroup is a financial services conglomerate with headquarters in New York. Citigroup offers a range of products and services in approximately 140 countries including consumer and commercial banking, brokerage, asset management and institutional securities and transactions services. Citigroup’s philanthropic activities are carried out by the Citi Foundation. As of December 2012, Citigroup reported total assets of USD 1.9 trillion and total deposits of USD 931 billion.
About Overseas Private Investment Corporation (OPIC)
The Overseas Private Investment Corporation (OPIC) is an agency of the US government that was established in 1971 as a development finance institution. OPIC works with private-sector firms in the US to identify opportunities in emerging markets and create an enabling environment for private enterprise in developing countries. OPIC provides financing through direct loans as well as guarantees, political risk insurance and investment funds. As of September 2011, OPIC is active in 107 countries and reports total assets of USD 7.8 billion and a total portfolio of USD 14.5 billion.
Sources and Additional Resources:
Information sent by Citigroup to MicroCapital.
MicroCapital. July 10, 2012, “MICROCAPITAL BRIEF: Citigroup Wins 2012 Business in the Community International Award for Excellence, for Microfinance Partnership with Overseas Private Investment Corporation,” https://www.microcapital.org/microcapital-brief-citigroup-wins-2012-business-in-the-community-international-award-for-excellence-for-microfinance-partnership-with-overseas-private-investment-corporation/
MicroCapital. April 25, 2012, “MICROCAPITAL BRIEF: Grameen-Jameel Loans $1.5m to Jordan Micro Credit Company (Tamweelcom),” https://www.microcapital.org/microcapital-brief-grameen-jameel-loans-1-5m-to-jordan-micro-credit-company-tamweelcom/
MicroCapital Universe Profile: Jordan Microcredit Company (Tamweelcom) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Jordan+Micro+Credit+Company+%28Tamweelcom%29
MicroCapital Universe Profile: Citi https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Citigroup
MicroCapital Universe Profile: Overseas Private Investment Corporation (OPIC) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Overseas+Private+Investment+Corporation+%28OPIC%29
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