MICROCAPITAL BRIEF: Nordic Microfinance Initiative Secures $105m in Commitments for NMI Fund IV from Norfund, IFU, Den Norske Bank, Ferd, KLP

The Nordic Microfinance Initiative (NMI), a Norway-based public-private partnership that supports microfinance institutions (MFIs) in developing countries, recently announced plans to launch its fourth fund, NMI Fund IV. The fund will finance MFIs and other financial service providers that supply “social loans (e.g. for education or housing), savings, micro-leasing, micro-insurance or payment services” in Africa and Asia.

A group of previous investors in NMI pledged a total of USD 105 million to the fund. The state-owned investment funds Norfund of Norway and Investeringsfonden for Udviklingslande of Denmark each committed the equivalent of USD 30 million. The following Norwegian companies each pledged USD 15 million: Ferd, a private investment company; Den Norske Bank; and mutual insurer Kommunal Landspensjonskasse.

NMI was founded in 2008 with the goal of creating jobs and wealth on a sustainable basis in Asia, Latin America and sub-Saharan Africa. That same year, NMI launched the NMI Global Fund, which invests in MFIs deemed “large and sustainable,” and the NMI Frontier Fund, which focuses on sub-Saharan Africa and South Asia. As of 2018, the NMI Global Fund has assets of USD 60 million, and the NMI Frontier Fund has assets of USD 40 million. Launched in 2013, NMI Fund III has investor commitments of USD 95 million that it invests in MFIs considered to be financially sustainable or likely to become so in the near future.

By Tiannah Steele, Research Associate

Sources and Additional Resources

NMI press release
https://nmimicro.no/media/nmi-record-sized-fund-105-musd-3.pdf

Arise news item: A new micro finance fund for improving financial inclusion
http://ariseinvest.com/a-new-micro-finance-fund-for-improving-financial-inclusion/

IFU Expands Commitment in Nordic Microfinance Initiative
https://www.ifu.dk/news/ifu-udvider-engagement-i-nordisk-mikrofinans-initiativ/

Ferd press release
https://www.ferd.no/en/about_ferd/nyheter/successful-nordic-public-private-microfinance-partnership

NMI homepage
https://nmimicro.no

Norfund homepage
https://www.norfund.no

IFU homepage
https://www.ifu.dk

DNB homepage
https://www.dnb.no

Ferd background
https://www.ferd.no/en/about_ferd/

KLP background
http://english.klp.no/about-klp