VisionFund International (VFI), which is owned by US-based NGO World Vision, recently issued a bond package in Australia, raising AUD 20 million (USD 13.8 million) to fund microloans, mainly for farmers and non-farming female entrepreneurs who live in poverty. This is the first-ever bond issue by VFI, and the bonds carry a term of 5 years and pay interest of 5 percent per year. FIIG Securities of Australia served as lead arranger of the issue, on a pro bono basis.
“This new channel of fundraising for VisionFund brings a unique social impact investment opportunity to Australians. Investors will help VisionFund to deliver enormous social benefit by assisting primarily poor women to sustainably lift their families out of poverty by growing small businesses and increasing their family’s incomes,” says Claire Rogers, the CEO of World Vision Australia.
FIIG Managing Director Jim Stening said that this “is the first time we have brought an impact investment product to market, with the VisionFund bond meeting the growing appetite amongst Australian investors for purpose-driven investment without sacrificing returns. We are honoured to be able to partner with VisionFund to arrange the fundraising, enabling Australian investors to directly support tens of thousands of vulnerable individuals around the world so that they can take care of their families and create better futures.”
VFI operates in 28 countries with total assets of USD 688 million and a gross loan portfolio of USD 494 million outstanding to 1.1 million borrowers. Most of these are women, and about a third are farmers. In addition to loans, the organization provides savings products, insurance services, financial education and business skills training.
World Vision is a US-based Christian relief and development organization that had 2018 revenue of USD 1.06 billion.
FIIG performs advisory services on investments valued at a total of AUD 8 billion (USD 5.5 billion).
Sources and Additional Resources
VFI press release
https://visionfund.org/newsroom/visionfund-international-raises-aud20m-through-its-first-bond-australia-help-fund-global
VFI homepage
https://visionfund.org
World Vision homepage
https://www.wvi.org
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