Posts Tagged ‘capital’

Posted on March 24, 2010 - by James

Ex-Morgan Stanley, UBS Execs join Unitus Capital

Strategic additions to leadership team bring deep expertise in finance, emerging market investing and philanthropic services to expand financial service offerings to microfinance institutions and social enterprises.

BANGALORE, INDIA – March 23, 2010 – Unitus Capital, a financial services firm specializing in arranging capital for microfinance institutions and social enterprises, is very pleased to announce the addition of Narayan Ramachandran and Terry Alan Farris to its leadership team. Mr. Ramachandran will join the Unitus Capital Board of Directors and serve as Co-Chairman along with Geoffrey Woolley. Terry Alan Farris joins the senior management team as Chief Executive Officer.

Unitus Capital has already established itself as a market leader in delivering capital markets solutions to the Indian microfinance industry. In line with the Company’s growth strategy, Mr. Ramachandran and Mr. Farris will lead the Company’s expansion into new product and service areas to benefit the underprivileged in Asia-Pacific.

“The combined experience of Narayan and Terry will help Unitus Capital expand its service and product offerings to increase participation of social impact investors in businesses that are driving social change in the region.” said Kylie Charlton, Managing Director of Unitus Capital.

“We are very fortunate to have Narayan join Unitus Capital as Co-Chairman, given his incredible global emerging markets experience,” adds Eric Savage, President of Unitus Capital. “Not only has Narayan played a leading role in developing the capital markets for emerging economies around the world, but he has also been active in social impact investing for many years.  We have already benefited from his strategic advice in refining Unitus Capital’s strategy.”

Mr. Ramachandran has been actively involved as an investor in Emerging Markets for over 20 years. Mr. Ramachandran recently stepped down as Chief Executive Officer and Country Head of Morgan Stanley India.  Previously, Mr. Ramachandran held senior global positions with Morgan Stanley Investment Management, notably as Head of Morgan Stanley’s Global Emerging Markets and Asset Allocation businesses. Mr. Ramachandran has a keen interest in using market-based mechanisms to alleviate poverty, in areas such as micro-finance, social venture capital, micro-insurance and affordable housing. Mr. Ramachandran, a Chartered Financial Analyst, received a BTech from the Indian Institute of Technology, Bombay and an M.B.A. from the University of Michigan.

“We are very excited that Terry has joined Unitus Capital as our CEO,” remarks Savage. “Throughout his career Terry has demonstrated a strong commitment to making a large social impact. Importantly, he has an amazing network of relationships across Asia, experience building teams and a passion for Unitus Capital’s mission.”

Mr. Farris has over 20 years of diverse experience managing and advising privately held companies, multinationals, family offices and individual entrepreneurs globally on their philanthropic strategy, initiatives and governance. His core expertise lies in philanthropy and fundraising in Asia, totaling several billion dollars over the course of his career. Formerly, Mr. Farris was the Head of Philanthropy Services for the Asia Pacific region at UBS, based in Singapore, where he advised over 225 family-owned companies and 150 non-profit clients in 12 countries. Earlier, Mr. Farris was Head of Philanthropy Services for Asia Pacific at MeesPierson (presently Fortis MeesPierson). He has been instrumental in establishing associations, organizations, and resource programs that help build community capacity throughout the Asia Pacific region. Mr. Farris has a Bachelors degree in Business Administration from Pacific Union College in California.

About Unitus Capital

Unitus Capital is a financial services firm specializing in arranging capital for social enterprises benefiting those at the bottom of the economic pyramid. With operations in Bangalore, Hong Kong, London and Sydney, Unitus Capital delivers a range of financial advisory and capital market services principally to clients in Asia.

Posted on July 1, 2009 - by Gavin

MICROCAPITAL STORY: M.J. Murdoch Charitable Trust Awards Global Partnerships in the United States with a $180,000 Capacity-Building Grant to Expand Its Microfinance Investment Funds…

Microcapital

Global Partnerships (GP), a Seattle non-profit organization founded in 1994 that funds microfinance institutions (MFIs) in Latin America, has received a USD 180,000 grant to help manage its loan funds.

The three-year grant comes from the M.J. Murdoch Charitable Trust, a private grantmaking foundation for the Pacific Northwest based in Vancouver, Washington and established in 1975. As of 2007, GP has fund assets worth USD 10.5 million whereas the Murdoch Trust had USD 892 million in assets.

As stated in GP’s press release, elements of the grant-supported project will include building GP’s staff capacity to manage the growth of its funds, broadening GP’s base of investors, and creating a knowledge management system to manage and analyze fund data.

This project is part of GP’s greater objective to augment management of its three investment funds and improve its management and tracking of fund data. Moreover, GP plans to expand into Mexico this summer, its eighth country.

As stated on the Murdoch Trust’s website, the grant will primarily be used to hire a new director of investment operations to manage GP’s microfinance investment programs. (more…)

Posted on June 24, 2009 - by Gavin

Microlender Kiva matches individuals with U.S. entrepreneurs who seek funding…

News Room Jersey

SAN FRANCISCO — Microfinance is a big focus in the international
development world. It’s the process of getting small loans and
financial services to the poor and underserved. And it’s not just
global institutions like the Grameen Bank that make those loans.
There are a number of Web sites that help individual Internet
users fund entrepreneurs from Kenya to Cambodia.

Now, one of the biggest, Kiva.org, is allowing users to make
microloans to small business owners, like Vika Sinipata, in the
United States.

An idea for a business is not enough

In January, the human resources professional fulfilled a longtime
dream. She opened her own business, assisting the elderly. She
got the idea for it after taking care of her own relatives. What
she couldn’t get was a line of credit.

(more…)

Posted on June 22, 2009 - by Gavin

Uganda: Equity Bank Cross-Lists On USE…

Daily Nation Kampala — EQUITY Bank has
cross-listed onto the Uganda Securities Exchange (USE), offering
3.7 billion ordinary shares to Ugandans. Peter Munga, the chairman
and founder of the bank, rang the ceremonial bell on Thursday to
commence trading on another significant milestone for the capital
markets sector. Some 19,800 shares were traded on the first day at
sh390, culminating into a turnover of sh7.5m and a market
capitalisation of sh1, 444b. Altogether, 364,444 shares were traded
in the Thursday’s session with a turnover of sh68.9m. Equity Bank’s
entry brings to 11 the number of equities on the bourse. The bank
also becomes the fifth cross-listed entity in the 11-year-old stock
exchange. James Mwangi, the Equity Group managing director,
explained that the development would enable Ugandans own a stake in
the bank. The 25-year-old bank began operations in Uganda on March
30, 2009, following a merger with the Uganda Microfinance Limited
the previous year. Simon Rutega, the head of USE, downplayed fears
that the cross-listing would be affected by next month’s upcoming
initial public offer of the National Insurance Corporation (NIC).
“This is a market that requires more products. I believe the NIC
issue will be absorbed. It is a small issue and the more options
for investors, the better,” argued Rutega. Source:
http://allafrica.com/stories/200906220067.html

Posted on June 18, 2009 - by Gavin

Nigeria: MFBs Cautioned Against Branch Expansion…

All Africa.com

The Chairman, Lagos State Association of Microfinance Banks, Chief. D. O. Adenekan, has warned microfinance bank operators against the risk of embarking on hasty branch expansion programme so as to avoid over-capitalizing and over-stretching their facilities.

In recent times, some microfinance bank operators have called on the Central Bank of Nigeria (CBN) to review the operational guidelines of the microfinance banks, especially the organic growth, saying the present guideline inhibits the growth of microfinance banks.

But in an interview with Vanguard, Adenekan noted that the present guidelines on the organic growth of microfinance banks is designed to ensure that they don’t over-stretch and over-expand themselves by over-capitalising.

“Our mission as microfinance banks is to grow the country from the bottom and to develop the ‘active poor’ to become ‘active rich’. Since that is the only way the country can gain from us as microfinance banks hence the the CBN stipulated that we should grow organically.” (more…)

Posted on June 17, 2009 - by Gavin

Standard Chartered India Completes Two Of The Largest Debt Capital Market Deals For Microfinance Institutions In India…

Standard Chartered

Hyderabad/Mumbai: Standard Chartered Bank India completed two landmark deals for Microfinance Institutions in the period April – June 2009 with two of the largest Microfinance institutions in the country – SKS Microfinance & Spandana Sphoorty Financial Ltd.

In April 2009, Standard Chartered and SKS Microfinance, India’s largest and the world’s fastest growing microfinance company completed a unique transaction in the debt capital markets by enabling the country’s first listed Non Convertible Debenture (NCD) Issue by a microfinance institution. SKS Microfinance raised INR. 750 mn (USD15mn) through an issue of 1-year NCD at a coupon rate of 10 percent. The NCDs have been listed on Bombay Stock Exchange Limited (BSE).

This was followed by another significant transaction in the debt capital market space – Spandana Sphoorty Financial Ltd., India’s second largest microfinance company with more than 2.5 million clients spread over nine states raised INR 800mn (USD17mn) through an issue of 1-year listed NCD with an yield to maturity of 10 percent. Again these NCDs have been listed on Bombay Stock Exchange Limited (BSE).

Standard Chartered India is the sole book runner and lead arranger for both the Issues

Commenting on the impact of the transaction on SKS and the sector, Suresh Gurumani, MD & CEO of SKS Microfinance, said “This transaction enables us to diversify the sources base and access capital market funding. By listing the NCDs on the stock exchange, SKS raises the bar on transparency and governance standards for the sector as a whole “. (more…)

Posted on June 15, 2009 - by Gavin

Belgian stake in Assam firm…

The Telegraph

Assam’s fledgling microfinance sector has receive a boost, with a foreign company picking up a stake in Asomi Finance Private Ltd — an institution which undertakes microfinance, income generation and development activities in the state.

Incofin, a Belgium microfinance company, which operates in 23 countries across the globe, has picked up a 34 per cent stake (Rs 8 crore) recently in Asomi Finance Private Ltd.

The Assam company got its non-banking financial company (NBFC) licence from the Reserve Bank of India on October 30 last year.

This is the first time that the Belgium-based company has invested in the country.

Microfinance is required, as many small entrepreneurs, farmers or artisans in Assam often do not have sufficient collateral or a regular income to qualify for conventional bank loans.

With a small loan, these individuals can start or develop their own business and secure their livelihood.

They thus become more independent and contribute to building a local economy, which, in turn, creates jobs and brings stability.

(more…)

Posted on June 11, 2009 - by Gavin

World Bank approves $250m for PPAF project…

Daily Times

ISLAMABAD: In recognition of the performance of the Pakistan Poverty Alleviation Fund (PPAF), the World Bank has approved $250 million for a poverty reduction project, PPAF-III, for the next five years, Chief Executive Officer Kamal Hayat said on Wednesday.

He told journalists the proposed PPAF-III project aims to alleviate poverty through consolidation and saturation approach in targeted areas. The project would focus on marginalised groups of the most vulnerable and poorest households, including women, he said, adding it would adopt an integrated approach to livelihood enhancement that learns from other programmes in Pakistan and South Asia.

Five divisions: Elaborating on the $250 million, he said it would be divided into five major components: Social Mobilisation and Institution Building ($38.5 million); Livelihood Enhancement and Protection ($85.5 million); Micro-credit Access ($40 million); Basic Services and Infrastructure ($80 million); and Project Implementation Support ($6 million). (more…)

Posted on June 3, 2009 - by Gavin

Nigeria: N200 Billion Agricuture Loan – ‘MFBs Should Participate As Managers’…

All Africa.com

Micro Finance Banks have joined the agitation calling for more banks to be allowed to participate in the disbursement of the N200 billion earmarked for the Commercial Agric Credit Scheme.

Presently, only First Bank of Nigeria (FBN) and United Bank for Africa (UBA) have been approved as managers in the disbursement of the loan by the Central Bank of Nigeria (CBN).

Managing Director of Peace MFB Mr. Innocent Ukasoanya said that the disbursement of the loan to subsistence farmers will be facilitated through the network of more than 800 Micro finance banks spread across Nigeria “rather than the present 2 participating banks alone”.

He said that MFBs have better connections with farmers than conventional banks due to their personalised service.

“If really the motive for government is to resuscitate the agricultural sector, MFBs should be fully involved at all stages of the disbursement process”, he said. (more…)

Posted on June 3, 2009 - by Gavin

MICROCAPITAL STORY: PlaNet Finance to Expand Microinsurance Program Across Middle East and North Africa…

Microcapital

PlaNet Finance Group plans to expand its microinsurance schemes throughout the Middle East and North Africa (MENA), following the implementation of a microinsurance program in Egypt with First Microfinance Foundation (FMF) and global insurance company Allianz.

Sawsen Ayari, Microfinance Expert and Programme Manager at PlaNet Finance United Arab Emirates (UAE), said the agency is planning to expand its micro-insurance facilities in several MENA countries through PlaNet Guarantee, PlaNet Finance’s microinsurance subsidiary.  PlaNet Guarantee, which was established in 2007, aims to provide technical assistance to MFIs, banks, insurance, and reinsurance companies in order to develop microinsurance and microguarantee products. As of first quarter 2009, PlaNet Guarantee was working with 10 partner MFIs in 6 countries to provide microinsurance products to over 70,000 microentrepreneurs and conducting R&D projects in 11 countries.

PlaNet Guarantee’s first micro-insurance scheme in the Middle East was initiated in January 2008 through a partnership with Allianz.  Allianz Group provides insurance, asset management and banking services to approximately 75 million customers in 70 countries. (more…)

Posted on June 2, 2009 - by Gavin

Agenda of global financial reform needs broadening…

Daily Monitor

Our world is at a tipping point. If we do not act together, if we do not act responsibly, if we do not act now, we risk slipping into a cycle of poverty, degradation, and despair.

Twenty-two years ago, the United Nations advanced the idea of sustainable development as a way of escaping from this cycle. This idea of an integrated and comprehensive approach to development remains as valid today as ever. It shows how to address the climate crisis, the food crisis and the energy crisis. It contains durable solutions to the financial crisis and global recession.
We must follow the wisdom of the Brundtland Report. We must pursue “development that meets the needs of the present generation without compromising the ability of future generations to meet their needs.” To do that, we must deal with climate change. As you know, this is the year of climate change.

We look to the December climate negotiations in Copenhagen to seal a deal that will enable us to pursue climate action on all fronts. A deal that covers adapta-tion, mitigation and the deployment of clean technologies. A deal that will reverse deforestation. A deal that will build capacity, and mobilize financial resources for developing countries. (more…)

Posted on June 2, 2009 - by Gavin

MICROCAPITAL STORY: Hyderbad-based Spandana Microfinance Seeks to Raise Rs 300 Crore (USD 63.7 million) by June…

Microcapital

According to a press release in The Economic Times of India, Spandana Sphoorty Financial Ltd. is set to raise Rs. 300 Crore (USD 63.7 million) in equity funding and is currently in talks with over two dozen investors.  The deal would raise the company’s valuation to Rs. 1,800 Crore (USD 382.2 million).  Spandana intends to use the funds to expand and strengthen its capital adequacy ratio.  The Reserve Bank of India (RBI) raised its capital adequacy requirements (CRAR) for non-bank financial institutions last August, requiring institutions to meet a 12 percent CRAR by April 2009 and a 15 percent CRAR by April 2010.

Spandana’s CRAR stood at 19.5 percent last fiscal year. To read a MicroCapital story on the RBI’s new regulations, click here.  Currently Mumbai-based JM Financial holds an 18 percent stake in the microfinance institution, private equity fund Valiant holds 11 percent, Lok Capital has a 5 percent stake and another 15 percent is held by senior employees, with this round of funding their stakes will be diluted.

Other Indian MFIs are also looking to raise equity funding, despite the ongoing credit crisis.  As reported by MicroCapital, SHARE Microfin also has plans to raise USD 50 million in equity.  Either transaction would be the largest microfinance institution (MFI) transaction since SKS Microfinance raised USD 75.4 million last fall.  To read a MicroCapital story about that deal, click here.  According to an article on the website VCCircle, investors like Lightspeed Venture Partners, Battery Ventures, and India Value Fund are now looking at investments in the microfinance sector. (more…)

Posted on May 28, 2009 - by Gavin

Kenyan eco-town: From the slums to a shining town on the hill…

The Independant World

In Kenya a little bit of money and a can-do attitude go a long way. Daniel Howden sees how Kaputei has transformed the lives of the country’s poor.

Clarice Adhiambo was looking for the usual things when she moved. Safe streets, more space, a guest room, maybe even a view of something green. More than anything she wanted a place to call her own. Her wish-list would be familiar to first-time buyers anywhere in the world. What would be less recognisable is the place from which she was moving.

Clarice left behind a 10ft by 10ft tin shack that she shared with eight others in the Nairobi slum of Soweto. Unlike the iconic South African shanty town of the same name, there is no electricity, running water or flushing toilets and no prospect of getting them. Kenya’s capital offers some of the most appalling urban poverty to be found anywhere in the world. It was in places like Kibera, Mathare and Soweto that the term “flying toilet” was invented. It describes the desperate people who cannot afford to use pit latrines and have to defecate into plastic bags and hurl them on to a nearby roof.

In her new home in Kaputei, an eco-town rising from the plains south of Nairobi, she has a flushing loo for the first time in her life and understandably she’s delighted. “This place has fresh air,” the 53-year-old says, almost unbelievingly. (more…)

Posted on May 28, 2009 - by Gavin

Share Microfin To Raise $50 Million From IFC, Others…

VC Circle

(more…)

Posted on May 28, 2009 - by Gavin

Women’s World Banking, Ghana wins award…

My Joy Online

Women’s World Banking, Ghana, (IWWBG) arguably the most innovative microfinance institution in Ghana has won an award at the recent Women’s World Banking Global Network and Capital Markets meeting held in New York from April 27 to May 5.

The meetings are held every two years to promote interaction and learning among network members. This year’s meeting marked the 30th anniversary of the network, which now consists of 29 members from Asia, Africa and America. It also marked the return of WWB Ghana to the global network after being disaffiliated in 2005.

The competition, held on the last day of the conference, was open to all 29 members of the network. However, only the work of nine microfinance institutions (MFls) including WWB Ghana and ASA Bank (the largest MFI in the world with about 16 million c1ients were admitted by JP Morgan to the competition stage. . .
At the competition stage, made up of three groups, WWB Ghana emerged top in Group B to become one of the last three finalists, which included FIE Microfinance Bank in Bolivia (the third largest MFI in latin America. (more…)

Posted on May 25, 2009 - by Gavin

Lebanon’s microfinance market undersaturated…

The Daily Star

BEIRUT: The microfinance industry in Lebanon is considered to be relatively small and is estimated to have a potential of 190,000 active borrowers,  Ziad Halabi, general manager of Ameen s.a.l said on Friday. “As of end 2008 the market consisted of 54,000 active clients, which means that only 28.4 percent of the market has been served, so we still have a gap of 71.6 percent in the market,” said Halabi during a conference held at Haigazian Univerisity in Beirut. The conference aims to discuss the importance of the microfinance industry in Lebanon and the challenges facing it in addition to the potential of its future growth.

Halabi based these figures on a study prepared by Grameen Jamee Foundation in 2008.

Ameen is a  non-profit organization which provides small loans to very small merchants, farmers and industrialists.

He admitted that reaching the 140,000 potential clients target is not easy given the amount of work needed for this type of business. “It is very difficult to grow that much in a short period of time. So we are trying to build our internal capacity to be able to hire more people, manage them and outreach more clients,” he said. “Our business grew over 40 percent in 2008 so we needed to hire 35 more people and train them. Outreaching to the 140,000 clients might need an additional 1,000 staff members, that’s why we need to work on our internal capacity and this is one of the main challenges we are facing,” he added.

(more…)

Posted on May 25, 2009 - by Gavin

Poverty level still high despite the over 800 MFBs…

Business Day

There are strong indications that poverty level in the country is still very high despite the establishment of over 800 microfinance institutions. This stark reality of the economic indices of Nigeria was released by the World Bank’s September 2008 report. It stated that Nigeria had nearly 70 percent of its population living in poverty, with more than 54 percent living below the poverty line (less than one US dollar a day). Also, the 2008 Human Development survey of the United Nations ranked Nigeria among the 25 poorest countries, measured on the basis of standard of living, life expectancy, and literacy.

There is no doubt, however, that the persistent global financial crisis, which has not only affected Nigeria but also individuals, has aggravated the nation’s poverty rate. The end result of the crisis is even further evident in global job losses, companies declaring bankruptcy, while others completely close down and employers cut down salaries, etc., all of which conspire to contribute to the high rate of poverty.

Meanwhile, in order to assist majority of the populace and encourage private businesses to thrive, the Central Bank of Nigeria (CBN) set up the microfinance scheme as an instrument to access financial services when succour was not coming from the conventional financial institutions in the country. (more…)

Posted on May 14, 2009 - by Gavin

Finance Unlimited Establishes New Micro-Lending Company…

Zawya

Citadel CapitalCitadel Capital, the leading private equity firm in the Middle East and North Africa controlling investments of more than US$ 8.3 billion, is pleased to announce its entry into the microfinance sector with the establishment of a new Portfolio Company, Tanmeyah.

The investment in Tanmeyah will be made through Finance Unlimited, the firm’s Platform Company for investments in the regional financial services sector. Tanmeyah will help thousands of small business owners and low-to-middle income entrepreneurs gain access to loans and financial services that would otherwise be unavailable to them through conventional banking offerings.

“There is a large unmet demand for microfinance services in Egypt. Traditionally, commercial banks have been reluctant to venture into the area of micro-lending because it was an operationally challenging endeavor that required specialized credit assessment skills that were not available in the local market. We see a clear opportunity for Tanmeyah to come in and fill the void,” said Citadel CapitalCitadel Capital Managing Director Ahmed El Houssieny. “We believe it will be a profitable venture that fills a market niche, and at the same time, it will catalyze Egypt’s economic development as it avails financing to individuals and sectors to which financing was previously non-existent.” (more…)

Posted on May 13, 2009 - by Gavin

Microfinance remains ‘resilient’ to global market trends…

The Daily Star

BEIRUT: Microfinance has proven itself so far to be very resilient to what is happening globally, and its clients are not necessarily experiencing anything that is correlated to the events in the US, Bob Annibale, Global Head of Microfinance at Citigroup said on Tuesday. “We shouldn’t be complacent as we look ahead because in spite the fact that many of our markets are much more resilient than they were in the past in terms of stronger reserves and much stronger domestic banks, they are going to feel some of the impact that come out of the global market trends,” he said.

His remarks came during the 6th annual Microfinance conference held at Le Royal Hotel in Beirut, organized by Sanabel, the Microfinance network of Arab countries. The conference aims at discussing the challenges facing the Microfinance sector in the Arab world and the impact of the financial crisis on this sector.

Annibale says that one of those effects is what is happening in terms of global bank lending to emerging markets and the impact that this will have on the domestic markets if not felt yet. “Capital flows to the emerging markets had dropped very sharply in 2008, and according to the Institute of International Finance it will unprecedentedly decline in 2009. We haven’t seen this much in the MENA region but let’s look ahead,” he said.

(more…)

Posted on May 11, 2009 - by Gavin

MICROCAPITAL STORY: K-Rep Bank of Kenya Receives $2.2m Microfinance Investment from the African Development Bank (AfDB)…

Microcapital

K-Rep Bank, a commercial bank that directly targets low income clients in Kenya, received a Kshs 174.8 million (USD 2.2 million) investment from the African Development Bank (AfDB) during May 2009. This financial support will also include technical assistance related to capacity building. K-Rep Bank provides various banking services and specializes in loans to low income, small and micro entrepreneurs. K-rep plans to create 10,000 new jobs by 2011 of which 55 percent would involve women entrepreneurs.

As at the end of 2007 K-Rep had over 153,000 active borrowers of which 64 percent were women. The average loan balance was USD 529. The gross Loan Portfolio was USD 81.5 million with Total Assets of USD 110.5 million, as reported to the MIX Market, the microfinance information clearing house. K-Rep had a Return on Assets of 2.2 percent and a Debt to Equity Ratio of 592 percent.

In November 2008 a MicroCapital story reported that K-Rep announced a USD 2.6 million loss for the nine months to September 2008 and received an injection of capital of USD 12.7 million from shareholders. By the end of 2008 the loss for the year was USD 4.4 million and MicroCapital reported that a new Chief Operations Advisor, Gerard Monteiro, had been appointed. Gerard Monteiro, a 33-year veteran of the banking and microfinance sector in Africa and the Middle East, is looking to cut costs and examine the current structure of the organization. (more…)