Posts Tagged ‘investment’

Posted on November 16, 2009 - by boris

IFC is planning investment in Shre Pathrakali Finance Company…

The International Finance Corporation (IFC) is planning investment in Shre Pathrakali Finance Company, a microfinance start-up that has launched operations in Uttar Pradesh (UP). The company plans to raise equity capital of about Rs 7.5 crore ($1.9 million) to start its operations in the state.

IFC, the multilateral lending arm of the World Bank, is considering an equity investment, along with other investors, to facilitate the company to start and expand its operations. Other shareholders will include Aavishkaar Goodwell, a microfinance- focused private equity firm.

IFC said its investment in a state like UP and in a microfinance company at an early stage would encourage other investors and entrepreneurs to expand operations in the state and nearby states.

Read more

Source: http://www.mydigitalfc.com/news/ifc-eyes-investment-micro-finance-start-varanasi-743

Posted on November 13, 2009 - by boris

ACCION International takes equity stake in Saija Finance…

ACCION International, a pioneer and leader in global microfinance, has announced that it has invested $500,000 for a 49.5 percent equity stake in Saija Finance Private Limited, a microfinance start-up that provides financial services to microentrepreneurs and low- and middle-income families in one of India’s most underserved regions.

The investment was made through ACCION’s equity investment arm, the ACCION Gateway Fund, and represents the fund’s fourth investment in India. Other Gateway investments in India include Swadhaar FinServe, Lok Capital and United Villages.

Saija aims to serve 400,000 customers by 2014 with group and individual loans, microinsurance and remittances, and will also roll out financial literacy training, as well as consumer protection assessment work through ACCION’s Center for Financial Inclusion.

Read more

Source: http://www.prnewswire.com/news-releases/accion-takes-equity-stake-in-saija-finance-a-microfinance-institution-serving-indias-poorest-69869657.html

Posted on November 9, 2009 - by boris

Consider It an Investment…

Instead of simply giving money away to a cause, groups and individuals are plowing their funds into financial vehicles—known as program-related investments—that let their money grow while it does good.

So, rather than make a one-time gift of $1,000, they might invest in a project that generates revenue, such as a loan to an entrepreneur in the developing world or real estate that rents to nonprofits. The returns can then go to other causes.

“Especially in light of this downturn, instead of investing in stocks and bonds [and using the returns to support nonprofit organizations], we’re making direct investments in the nonprofits we support,” says Tom Parker, former president of commercial real-estate developer Hutton Cos. and the president of the Hutton Foundation.

Read more

Source: http://online.wsj.com/article/SB10001424052748704500604574481541506618608.html?mod=googlenews_wsj

Posted on August 19, 2009 - by boris

IFC’s first microfinance investment in Latin America’s Southern Cone…

IFC, a member of the World Bank Group, has announced an investment of $1.2 million in Paraguay’s Financiera El Comercio to help reduce the impact of the financial crisis by supporting lending to microenterprises.This is IFC’s first microfinance investment in Latin America’s Southern Cone.

El Comercio, the largest finance company in Paraguay, provides financial services predominantly to micro, small, and medium enterprises, particularly in the agricultural sector. It also specializes in  consumer and home improvement loans. The company serves more than 73,000 customers through a network of 46 branches, 36 of which are located in rural areas. IFC’s investment will strengthen El Comercio’s capital base and help it expand its lending to underserved segments of the rural population.

Read more

Source: http://www.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/0B4CEC9673B7F03985257616005045BC?OpenDocument

Posted on August 14, 2009 - by boris

IFC to increase investment and advisory services in Togo and Cote d’Ivoire…

IFC, a member of the World Bank Group, today signaled its further commitment to increasing private sector investment and advisory services in Togo and Côte d’Ivoire with a visit by regional Vice President Thierry Tanoh and Director for West and Central Africa Yolande Duhem. In their second trip to these countries in less than a year, the IFC officials highlighted recent trade finance transactions and IFC’s growing regional relationship with Lome-based Ecobank.

For more than 15 years, Ecobank and IFC have been working together to offer improved services to clients in West Africa. The relationship is improving access to finance and building strong financial markets in order to strengthen the private sector on the continent.

Read more

Source: http://www.ifc.org/ifcext/africa.nsf/Content/SelectedPR?OpenDocument&UNID=DA79A79015272194852576110056F04D

Posted on August 7, 2009 - by boris

International Finance Corporation (IFC) investment in Renshou Minfu Rural Bank to support financing for small businesses in China…

IFC, a member of the World Bank Group, has
agreed to invest 5 million Chinese renminbi (equivalent to $700,000) in Renshou
Minfu Rural Bank, a village and township bank in Sichuan Province, to support
financing for micro and small businesses in rural China.

IFC also will provide advisory services to enable Renshou Minfu Rural Bank to
increase operational efficiencies, adopt advanced risk management practices,
and provide high-quality products and services.

Read more
Source: http://ifcln001.worldbank.org/ifcext/mediahub.nsf/Content/SelectedPR?OpenDocument&UNID=016E1879DC2810758525760A0056B162

Posted on August 4, 2009 - by boris

The National Poverty Eradication Programme is planning to pay N72 million to eliminate poverty in Delta State…

THE National Poverty Eradication Programme (NAPEP) has commenced the disbursement of N72 million to eradicate poverty in 500 households in Delta State, as it flagged off  the implementation of its COPE  programme at Orerokpe, Okpe local government area of the state.

The State Coordinator and Chairman, Joint Implementation Committee of NAPEP, Mr. Austin Igbine, while empowering 100 households drawn from Okpe and Ethiope East local government area in Orerokpe with N5,000 each, said the programme would run for a period of one year.

Igbine said the programme was aimed at breaking the inter-generational transfer of poverty through investment in human capital development of children and wards of the extremely poor in the country.

Read more

Source: http://www.vanguardngr.com/2009/08/04/napep-begins-disbursement-of-n72m-to-500-households/

Posted on July 20, 2009 - by boris

Standard Chartered Bank advanced Ksh 450m loan to Faulu Kenya…

Kenya Broadcasting Corporation posted:

Standard Chartered Bank Monday advanced a loan facility worth Ksh 450 million to Faulu Kenya to facilitate expansion targeted to reach over 500,000 customers.

The deal signed between Standard Chartered, International Finance Corporation (IFC) and Faulu Kenya will see the funds availed to the unbanked population in Kenya.

IFC is bearing 80% of the loan’s risk.

Speaking during a media breakfast Monday at a Nairobi hotel, Standard Chartered CEO Richard Etemesi said the bank was committed to providing access to financial services for the microfinance sector.
(more…)

Posted on June 26, 2009 - by Gavin

Microinsurance is lucrative, so will it be the next ‘revolution’?…

Digital Journal

Microinsurance works like microfinance: It enables the poor who
live in developing nations to access life insurance, crop
insurance, and insurance for damage caused by natural events.

Commercial insurance firms have realized that they’ve been
overlooking a profitable market segment, but now that they are
aware of what they’ve been missing out on, they are now
capitalizing on the new opportunities.

One organization is leading the pack, having raised some $44
million for the world’s first microinsurance fund.

Before you think that this is strictly a cash grab, consider the
benefits for the poor, who have never been able to afford
insurance before. Farmers will take chances with new seed stocks;
or people who have been devastated by natural disasters such as
hurricanes, floods or other catastrophes will no longer have to
lose everything. And should people wish, they can purchase life
insurance, which would help pay for the rising costs of funerary
services.

(more…)

Posted on June 24, 2009 - by Gavin

Citibank India FY09 PAT rises 20% yoy…

India Infoline

Expatriates Citibank India on Wednesday reported its financial
results for the year ended March 31, 2009. Citibank India branch
announced that its net profit after tax was Rs21.73bn for the
year 2008-09, representing a 20% increase from Rs18.04bn in the
same period of last year. The bank has reported total revenues of
Rs104.23bn for the year ended March 31, 2009, representing a 24%
increase from Rs84.1bn for the same period last year.

Expatriates The growth in revenues was attributable both to
higher interest income as well as significant growth in fee and
trading income. As at March 31, 2009, the balance sheet grew by
26% from Rs838.51bn to Rs1052.64bn, reflecting continuing growth
in customer lending activities.

Expatriates Despite industry-wide challenges in unsecured
consumer credit impacting profitability of the Retail Banking
segment, the increase in net income reflected strong growth in
Corporate/Commercial Banking and Treasury.

(more…)

Posted on June 22, 2009 - by Gavin

MFIs in Africa face collapse as financial crisis bites…

Microfinance institutions in Africa have very little chance of
surviving the current financial crisis as loan repayment default
soars. Most of their low-income debtors will be too busy
concentrating on personal survival to think of repaying their
loans. This is despite a show of resilience by the global
microfinance sector in a new survey conducted by CGAP, an
independent policy and research centre dedicated to advancing
financial access for the world’s poor. “There have been few
failures among microfinance institutions since the onset of the
current financial crisis. However, the more than 400 respondents to
the March survey reported significantly tougher market conditions,”
reads the report, released recently. In East Africa, microfinance
institutions have been pivotal in spurring growth and development
for the majority of rural dwellers. They also support a thriving
small and medium scale enterprise sector that today account for
about 30 per cent of the gross domestic product of countries like
Kenya. However, the full impact of the financial crisis is likely
to be felt in the second half of this year. Accordingly, many MFIs
are taking steps to cope, such as taking a more conservative
lending approach and in some cases, even cutting staff. “Many poor
households are struggling with the many consequences of the global
food, financial and employment crises,” said Elizabeth Littlefield,
CGAP’s chief executive. She added, “Their income sources like
revenue from small businesses or from money sent from families
working abroad, have become more erratic. At the same time, many
expenses like food, are still far higher than before. Savings are
thus being withdrawn and loan repayment rates to MFIs are
worsening.” According to the survey, as opposed to their
counterparts in emerging economies, leading MFIs in the West are
well positioned to adjust their operations to weather the financial
storm. Many are investing more in client communications and
tightening credit and collection policies. Source:
http://www.theeastafrican.co.ke/business/-/2560/613414/-/5jyrrxz/-/

Posted on June 17, 2009 - by Gavin

Loans To SMIs Total RM120 Billion Todate…

Bernama.com

KUALA LUMPUR, June 17 (Bernama) — A total of RM120 billion todate has been given out in loans by the country’s banking system to entrepreneurs and small traders especially in the small and medium sized industries (SMIs), the Dewan Rakyat was informed Wednesday.

Deputy Finance Minister Senator Datuk Dr Awang Adik Hussein said the loans involved 500,000 accounts which accounted for 40 percent of the RM300 billion loans allocated.

“The rate (approvals) for SMIs loans currently stands at 80 percent, which means for every 10 applications, eight are approved,” he said in reply to a question from Ahmad Kasim (PKR-Kuala Kedah) who wanted to know if the ministry kept a detailed view of the banks in keeping it easy for entrepreneurs and small traders to have access to loans.

Ahmad also wanted to know the measures taken by the ministry to ban moneylenders who took aggressive measures when recovering their money.

Awang Adek said the rise in the level of approvals for loans was largely due to the SMI Loan Guarantee Scheme introduced by the government under the economic stimulus package. (more…)

Posted on June 17, 2009 - by Gavin

LeapFrog Raises $44 Million for World’s First Microinsurance Fund…

PR Newswire

LUXEMBOURG, – In a breakthrough for microfinance and alternative investment, the LeapFrog Financial Inclusion Fund announced today that it has raised US$44 million. It is the world’s first investment fund focused on microinsurance. The fund aims to invest in businesses that will bring insurance and financial services to 25 million low-income people in Africa and Asia.

The capital was raised from a diverse set of public and private investors around the world, including the European Investment Bank (EIB), FMO, Omidyar Network, Triodos-Doen, Hivos-Triodos Fund, ACCION International, Calvert Large Cap Growth Fund, wealth manager Felipe Medina, and the LeapFrog team. The team consists of former CEOs and pioneers in insurance and investment in emerging markets.

“The world desperately needs market-based solutions to poverty that draw in major financial investors by offering fair but competitive returns,” said Dr. Andrew Kuper, President and Founder of LeapFrog. “The best part about microinsurance is that we can reach millions of people, swiftly. Microinsurance is both profitable and scalable. We can think big. We don’t have to choose between money and meaning.” (more…)

Posted on June 11, 2009 - by Gavin

Launch of a New Employment Strategy…

Independent Online

A new strategy of benefit to small and medium enterprises around Europe was launched last week by the European Commission in a bid to tackle unemployment resulting from the global recession. The growing rate of unemployment across Europe, which is estimated to hover around 25 million people in Europe by 2010, pressed the European Union to seek the optimal solutions to combat this mass unemployment.

The fund support of this new plan, entitled Shared Commitment for Employment, is making available e19 billion of expenditure. This scheme seeks to assist people hit by the economic crisis in 2009-2010 alone. Furthermore, the European Commission is also willing to back both EU Member States and social partners for the creation of rapid reaction packages that are focused more on job creation. In other words, the EU needs a new strengthened cooperation between all the key actors, including the EU institutions, Member States, trade unions and employers.

The key principles of such packages will help to preserve jobs and to pave the way to recovery for those facing difficulties. Furthermore, the European Commission is expected to relieve Member States’ commitment to co-finance projects for the coming months. (more…)

Posted on June 8, 2009 - by Gavin

How realistic is agricultural fund for MFBs?…

Business Day Online

Going by the much toutedFederal Government’s assertion that it is committed to poverty alleviation in the nation, it is expected that it would lose no time in approving the much-hyped N200 billion subsidy to small-scale-farmers, through microfinance banks. Evidently, such a move becomes necessary because the majority of basic foodstuff in the country is produced by small-scale-farmers. Besides, microfinance banks are primarily set up to provide financial services to the active poor, who are traditionally not served by the conventional financial institutions.

According to Olutayo Adenekan, chairman, National Association of Micro Finance Banks (MFBs) Lagos, small-scale farmers in the rural areas are closer to microfinance banks, whose supervisory act of ensuring loan recovery will result in high agricultural output.

However, that dream may not see the light of day so soon since government, two months ago, approved that the Central Bank of Nigeria (CBN) disburse a N200 billion agricultural fund to commercial farmers at 9 percent interest rate through commercial banks. This begs the question: If the fund is to be disbursed by commercial banks, where then is the agricultural fund for MFBs? (more…)

Posted on June 5, 2009 - by Gavin

Microfinance funds await better cash flow…

Financial Chronicle

India-focused microfinance funds, which had seen investment cycles turn longer due to the global credit crisis last year, are hoping for robust fund flows this year, following improvement in global equity markets coupled with positive domestic sentiments after a strong election mandate.
Most of the microfinance funds are dependent on foreign investors for fund flows. As a result, these funds saw their investment cycles getting prolonged as the global financial crisis had made some new mainstream investors in the microfinance space a bit wary.

Microfinance institutions are those, which provide financial services to poor or low-income clients, including consumers and the self-employed. The microfinance sector accounts for close to Rs 1,00,000 crore disbursements.

“Definitely the sentiments have improved from September last year, due to the improvement in the global economy. Main-stream investors are also turning positive on the Indian microfinance sector following the improvement in the global equity markets and political stability,” Mona Kchawa, director investments at Caspian Advisors said. (more…)

Posted on June 5, 2009 - by Gavin

MICROCAPITAL STORY: International Finance Corporation (IFC) Invests over $514m in Micro Small and Medium Enterprise (MSME) Initiatives During 2008…

Microcapital

The International Finance Corporation (IFC), a member of the World Bank Group, provides investment and advisory services to developing countries. Created in 1956, the IFC seeks to foster sustainable economic growth by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Within its Global Financial Markets sector, the IFC supports microfinance in order to promote successful and sustainable economies in low and middle income countries.

The IFC provides direct and indirect investment and advisory services to the microfinance sector. Its focus is on creating and supporting commercially viable microfinance institutions (MFIs) that can attract private capital thereby responding to unmet demand for micro loans. Furthermore it seeks to demonstrate the business case for commercial microfinance and also promote it as an asset class to private institutional investors. During 2008 the IFC invested USD 513.8 million in micro small and medium enterprise (MSME) initiatives and provided USD 840,000 worth of advisory services. Following is detailed information about IFCs activities in the microfinance arena.

The IFC together with Citi, a global financial institution, supported the Bangladesh Rural Advancement Committee (BRAC) with a local currency facility to expand lending to micro, small and medium enterprise (SME) customers in February 2008. The IFC USD 18 million facility was made available in Bangladeshi taka, its first investment in BRAC. Through this loan BRAC will reduce its dependence on grants and expand further to women borrowers. (more…)

Posted on May 29, 2009 - by Gavin

Equity Bank expects 40% profit growth this year…

The New Vision

One of Kenya’s most successful banks, Equity, expects pre-tax profit to rise 30%-40% this year, slower than last year’s 111% growth due to investments in expansion, its chief executive said.

James Mwangi, whose bank specialises in rural customers and holds more than half of the accounts in east Africa’s largest economy, told Reuters that because of the tough global conditions and drought at home, he did not expect the market to be disappointed by the forecast.

“It is not that the bank is not generating … The top line is growing beyond 100%, but we decided to create future business whereby we have focused on investing and creating a new earning platform.”

Mwangi said in the last year, Equity had expanded operations in Kenya with another 62 branches, an investment bank, a shares custodial service at the bourse and an insurance agency.

“This is a period of investing.”

Mwangi said the bank’s shareholders had resolved to buy into National Bank of Kenya, a rival that is being put up for sale by the government in an 8 billion shilling privatisation programme. (more…)

Posted on May 28, 2009 - by Gavin

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

VC Circle

(more…)

Posted on May 26, 2009 - by Gavin

PAPER WRAP-UP: Microfinance Funds Continue to Grow Despite the Crisis, by the Consultative Group to Assist the Poor (CGAP)…

Microcapital

According to recent CGAP research report, microfinance funds have not been severely impacted by the global financial crisis.The report acknowledges that while emerging market funds have experienced a 20 percent sell-off, microfinance investment funds (MIVs) experienced positive returns in 2008.In fact, assets in the top 10 microfinance investment funds grew by 32 percent in 2008.The report is based on UBS Investment Research regarding economic comment on the state of the emerging markets, CGAP and Symbiotic’s (a microfinance investment advisor) research on the top 10 microfinance investment vehicles (MIVs), and the historical performance of euro-denominated funds as obtained from the Symbiotics Microfinance Index EUR.

As of December 2008, there were 104 active microfinance funds with total assets under management of USD 6.5 billion.CGAP notes that the industry is very concentrated (private equity funds, holding of microfinance banks, fixed income funds, structure finance vehicles and a broad range of institutions) with the top 10 funds holding about 60 percent of the asset base.

The International Finance Corporation (IFC), a member of the World Bank Group, as well as other Development investors are presently active in the microfinance community and have been strengthening their portfolios in response to the credit crisis.Retail investors have also contributed to the growth of microfinance funds in 2008.For example, a retail-oriented fund, the responsAbility Global Microfinance Fund has increased by 17 percent since September 2008 and 96 percent for the year.

(more…)