MICROCAPITAL BRIEF: International Finance Corporation (IFC), KfW Bankengruppe, German Federal Ministry of Economic Cooperation and Development (BMZ) to Invest $100m in Micro Finance Initiative for Asia (MIFA)

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, reportedly plans to set up the Micro Finance Initiative for Asia (MIFA), a Luxembourg-based USD 100 million microfinance debt fund. IFC will invest up to USD 20 million in the investment vehicle. Two German development institutions, KfW Bankengruppe and the German Federal Ministry of Economic Cooperation and Development (BMZ), will also invest undisclosed sums in MIFA. MIFA will make debt investments throughout Asia [1]. No date has been released for the first disbursement from the fund.

As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and total investment mobilization of USD 12.2 billion to 518 projects. In 2010, KfW Bankengruppe invested approximately USD 7.4 billion in developing and transition countries. BMZ’s budget for 2012 is EUR 6.38 billion (USD 8.40 billion).

By Brendan Millan, Research Associate

About International Finance Corporation (IFC): A member of the World Bank Group, 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 2011, IFC has 182 member countries, total assets of USD 68.5 billion and total investment mobilization of USD 12.2 billion to 518 projects.

About KfW Bankengruppe: Formed in 1948 as part of the US-funded Marshall Plan, KfW Bankengruppe is a German-owned development bank. KfW Bankengruppe offers financial products and services in housing, small and medium-sized businesses, export and import industries, foreign investment and development aid.  In 2010, KfW Bankengruppe invested approximately USD 7.4 billion in developing and transition countries.

About German Federal Ministry of Economic Cooperation and Development (BMZ): Founded in 1961, BMZ focuses on economic development in Germany and in approximately 60 other countries. BMZ’s budget for 2012 is EUR 6.38 billion (USD 8.40 billion).

Sources and Resources:

[1] VC Circle: “IFC to Start $100 M Microfinance Debt Fund”,  http://www.vccircle.com/500/news/ifc-to-start-100m-microfinance-debt-fund

MicroCapital.org Article, March 2, 2012, “Microfinance Institution AccessBank of Azerbaijan Offers Vehicle Insurance”, https://www.microcapital.org/microcapital-brief-microfinance-institution-accessbank-of-azerbaijan-offers-vehicle-insurance/

MicroCapital.org Article, February 29, 2012, “UK’s CDC Group Invests $10m in Progression Eastern African Microfinance Equity Fund (PEAMEF), https://www.microcapital.org/microcapital-brief-uks-cdc-group-invests-10m-in-progression-eastern-african-microfinance-equity-fund-peamef/

MicroCapital.org Article, February 4, 2012, “Advans, International Finance Corporation (IFC), KfW Bankengruppe, (FMO) to Start La Fayette Microfinance Bank in Nigeria with $6.2 m in Equity Investments”, https://www.microcapital.org/microcapital-brief-advans-international-finance-corporation-ifc-kfw-bankengruppe-fmo-to-start-la-fayette-microfinance-bank-in-nigeria-with-6-2m-in-equity-investments/

MicroCapital Universe Profile: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

MicroCapital Universe Profile: KfW Bankengruppe, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=KfWBankengruppe+%28KfW+Bank+Group%29

MicroCapital Universe Profile: German Federal Ministry of Economic Cooperation and Development, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Federal+Ministry+for+Economic+Cooperation+and+Development

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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