BlueOrchard participates in the launch of new lending facility for microfinance in Cancun

Microfinance Focus , March 24, 2010 – BlueOrchard Finance S.A. (BlueOrchard Finance), the Inter-American Development Bank’s Multilateral Investment Fund (MIF), the Inter-American Investment Corporation (IIC), the Corporación Andina de Fomento (CAF), and other private investors signed documents launching theMicrofinance Growth Fund (MIGROF) recently, a new lending facility for microfinance institutions in Latin America and the Caribbean.

U.S. President Barack Obama announced MIGROF at the Fifth Summit of the Americas in Port of Spain, Trinidad, in April 2009, saying that the United States Overseas Private Investment Corporation (OPIC), MIF and the IIC would partner to launch a new source of funding for microfinance institutions in response to the reduction in their lending capacity due to the global credit crisis. In September 2009, the partners agreed to establish the Microfinance Growth Fund and BlueOrchard Finance were chosen to manage the facility. OPIC pledged a $125 million loan for its operation.

At the launching ceremony on 20^th march, almost one year after U.S. President Obama’s announcement, OPIC reiterated its pledge to lend $125 million to the new facility. MIF is providing $10 million in equity, the IIC will contribute up to $5 million, and CAF will invest up to $10 million. The private partners in MIGROF are the Norwegian Microfinance Initiative, Banamex, ACCION International and BlueOrchard Finance S.A.

“We are very proud to participate in the official launch of MIGROF today and look very much forward to beginning investment operations during the second quarter 2010.” said Jean-Pierre Klumpp, CEO of BlueOrchard Finance, who took part in the meeting in Cancun. “BlueOrchard maintains solid relationships with over 80 microfinance institutions throughout Latin America and the Caribbean based on mutual trust and a track-record of successful cooperation. The healthy growth of their activities will increase employment and socio-economic progress for people who lack access to basic financial services.”

BlueOrchard Finance presently has outstanding loans with 47 MFIs in 12 countries in Latin America for a total amount of nearly USD 326 million representing over 45% of its total current loans.

MIGROF will offer medium- and long-term financing both in local currency and in U.S. dollars, targeting 35 percent of the total financing to be provided in local currencies.

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