Posted on May 20, 2009 - by Gavin

Standard Chartered’s Microfinance Deal Awarded Best Structured Finance Deal – Africa by The Banker…

Standard Chartered

Standard Chartered’s Microfinance Institutional Loans for Africa and Asia’s $93m (MILAA) risk participation deal was awarded by The Banker as one of their Deals of the Year 2009. The deal was awarded by the highly influential publication as the best Structured Finance Deal in Africa and is a clear indication of the Bank’s leading role in the Microfinance Sector.

Standard Chartered acted as the sole arranger on a deal that allowed international investors to get valuable exposure to a growing, but still inaccessible, asset class. MILAA was the first ever issuance of notes backed by loans to micro¬finance institutions in Africa and Asia.

The structure of the deal is novel. While the underlying loans will be provided to microfinance institutions in local currency, investors’ exposure is limited to their original investment in dollars. The deal structure also incorporates a three-year re-investment period which provides investors with a longer-term exposure to the asset class. Participating investors took a pari-pasu interest in the reference portfolio, which ensures alignment of interest between investors and Standard Chartered.

The deal was marketed to development organisations and socially conscious investors, which included the International Finance Corporation as the anchor investor. This complex securitisation is a landmark deal in that it was completed at a time of unprecedented market turbulence. It will unlock more funding for microfinance in emerging markets, which in turn will help millions in less developed economies work their way out of poverty. The deal is part of Standard Chartered’s commitment to establish $500m of microfinance lending over the next five years made at the Clinton Global Initiative in September 2006.

Standard Chartered’s Microfinance Institutional Loans for Africa and Asia’s $93m (MILAA) risk participation deal was awarded by The Banker as one of their Deals of the Year 2009. The deal was awarded by the highly influential publication as the best Structured Finance Deal in Africa and is a clear indication of the Bank’s leading role in the Microfinance Sector.

Standard Chartered acted as the sole arranger on a deal that allowed international investors to get valuable exposure to a growing, but still inaccessible, asset class. MILAA was the first ever issuance of notes backed by loans to micro¬finance institutions in Africa and Asia. The structure of the deal is novel. While the underlying loans will be provided to microfinance institutions in local currency, investors’ exposure is limited to their original investment in dollars. The deal structure also incorporates a three-year re-investment period which provides investors with a longer-term exposure to the asset class. Participating investors took a pari-pasu interest in the reference portfolio, which ensures alignment of interest between investors and Standard Chartered.

The deal was marketed to development organisations and socially conscious investors, which included the International Finance Corporation as the anchor investor. This complex securitisation is a landmark deal in that it was completed at a time of unprecedented market turbulence. It will unlock more funding for microfinance in emerging markets, which in turn will help millions in less developed economies work their way out of poverty. The deal is part of Standard Chartered’s commitment to establish $500m of microfinance lending over the next five years made at the Clinton Global Initiative in September 2006.

Standard Chartered’s Microfinance Institutional Loans for Africa and Asia’s $93m (MILAA) risk participation deal was awarded by The Banker as one of their Deals of the Year 2009. The deal was awarded by the highly influential publication as the best Structured Finance Deal in Africa and is a clear indication of the Bank’s leading role in the Microfinance Sector.

Standard Chartered acted as the sole arranger on a deal that allowed international investors to get valuable exposure to a growing, but still inaccessible, asset class. MILAA was the first ever issuance of notes backed by loans to micro¬finance institutions in Africa and Asia. The structure of the deal is novel. While the underlying loans will be provided to microfinance institutions in local currency, investors’ exposure is limited to their original investment in dollars. The deal structure also incorporates a three-year re-investment period which provides investors with a longer-term exposure to the asset class. Participating investors took a pari-pasu interest in the reference portfolio, which ensures alignment of interest between investors and Standard Chartered.

The deal was marketed to development organisations and socially conscious investors, which included the International Finance Corporation as the anchor investor. This complex securitisation is a landmark deal in that it was completed at a time of unprecedented market turbulence. It will unlock more funding for microfinance in emerging markets, which in turn will help millions in less developed economies work their way out of poverty. The deal is part of Standard Chartered’s commitment to establish $500m of microfinance lending over the next five years made at the Clinton Global Initiative in September 2006.

Standard Chartered’s Microfinance Institutional Loans for Africa and Asia’s $93m (MILAA) risk participation deal was awarded by The Banker as one of their Deals of the Year 2009. The deal was awarded by the highly influential publication as the best Structured Finance Deal in Africa and is a clear indication of the Bank’s leading role in the Microfinance Sector.

Standard Chartered acted as the sole arranger on a deal that allowed international investors to get valuable exposure to a growing, but still inaccessible, asset class. MILAA was the first ever issuance of notes backed by loans to micro¬finance institutions in Africa and Asia. The structure of the deal is novel. While the underlying loans will be provided to microfinance institutions in local currency, investors’ exposure is limited to their original investment in dollars. The deal structure also incorporates a three-year re-investment period which provides investors with a longer-term exposure to the asset class. Participating investors took a pari-pasu interest in the reference portfolio, which ensures alignment of interest between investors and Standard Chartered.

The deal was marketed to development organisations and socially conscious investors, which included the International Finance Corporation as the anchor investor. This complex securitisation is a landmark deal in that it was completed at a time of unprecedented market turbulence. It will unlock more funding for microfinance in emerging markets, which in turn will help millions in less developed economies work their way out of poverty. The deal is part of Standard Chartered’s commitment to establish $500m of microfinance lending over the next five years made at the Clinton Global Initiative in September 2006.