Archive for the ‘Investments’ Category

Microfinance Focus, July 30, 2009: CRISIL Ratings has assigned  ‘BBB-/Stable’ rating to the term loans of Ujjivan Financial Services Pvt. Ltd, a Bangalore based Microfinance institution, saying the outlook is stable. CRISIL expects Ujjivan to improve its competitive position in the microfinance industry over the medium term, given its comfortable capital position, and benefits derived from its management’s experience in the financial services sector, said a press release. Ujjivan Financial Services Pvt Limited is an NBFC since 2005 engaged in microfinance. It has 127 branches, with more than 295,000 customers and a portfolio outstanding  of Rs.1.7 billion, as of March 2009. In FYE2008-09, the company reported a loss after tax of Rs.6.7 million and a total income Rs.280.35 million. Full story

Microfinance Focus, July 24, 2009: India Financial Inclusion Fund (IFIF) has decided to invest in Sonata Finance Private Limited, a microfinance institution in Uttar Pradesh, in the near future though it did not specify the amount.  Set up in August 2008, the fund is advised by Hyderabad-based Caspian Advisors Private Limited. The fund focuses on making equity investments in microfinance institutions in India, said a press ... Full story

MicrofinanceFocus, July 22, 2009: The State Bank of Pakistan (SBP) has agreed to provide Rs 215 million under the Institutional Strengthening Fund (ISF) and signed on Tuesday Memorandums of Understanding (MoUs) with Pakistan Microfinance Network (PMN) and NRSP Microfinance Bank, stated a press release. The country's central bank will provide Rs 133 million to PMN over the next five years and Rs 82 million to NRSP Microfinance Bank over one year for promotion of microfinance services in the country. In addition, Rs 82 million have also been approved for Tameer Microfinance Bank over the next one year. Full story

MicrofinanceFocus, July 22, 2009: Banco Compartamos, the Mexican microfinance bank, on Tuesday announced its second quarter results which show net profit rose 31.3% totaling 327 million pesos ($24.7 million), up from 249 million pesos recorded in the corresponding quarter of 2008, in a statement filed with the Mexican Stock Exchange. The bank's active clients reached 1,317,472 or a 40.1% increase compared to 2008 and its total loan portfolio reached 6,729 million pesos or a 40.4% increase compared to second quarter in 2008. Earnings per share or EPS, excluding shares repurchased, reached 0.79 peso versus 0.58 peso in second quarter of 2008, representing 35.2% growth. Equity to assets was at 40.1%, while ROAE reached 41.3%. Full story

MicrofinanceFocus, July 21, 2009: The Reserve Bank of India has urged big IT firms to involve more in the cause of financial inclusion, which is a major challenge before the nation. Speaking to ET at a seminar on financial inclusion organised by consultancy firm Skoch in Mumbai last week, K. C. Chakrabarty, Deputy governor of RBI, said: “The scale of business in financial inclusion is so big that we need participation from big IT companies.” Mr Chakrabarty also said that the RBI will come out with more guidelines for the sector in a month's time. Full story

MicrofinanceFocus, July 21, 2009: The Asian Development Bank’s (ADB) Board of Directors has approved a Safeguard Policy Statement that will strengthen protections already in place to avoid or minimize the adverse impacts of ADB-supported projects which among others, include focus on capacity development of borrowers. With the approval of the new Safeguard Policy Statement on Monday, the bank has concluded a very extensive and highly consultative ... Full story

MicrofinanceFocus, July 21, 2009: IFC, a member of the World Bank Group, will provide a partial credit guarantee for 80% of a 450 million Kenyan shilling loan from Standard Chartered Bank to Faulu. Standard Chartered Bank on 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. Full story

MicrofinanceFocus, July 20, 2009: Aavishkaar Goodwell, a specialized equity fund dedicated to Indian MFIs, has recently made an equity investment commitment of Rs 45 million to Suryoday Micro Finance Pvt Ltd (SMF), the company said in a statement on Monday. Suryoday, a Pune-based MFI which began its micro‐credit operations in May this year, was the first MFI in India to secure equity funding from an institutional investor prior to commencement of operations. The funding will be used towards early stage operational investments and capital adequacy requirements. Full story

MicrofinanceFocus, July 17, 2009: Dutch pension fund PGGM will invest 43 million euros ($60m) over the next two years in a global microfinance equity fund run by Grassroots Capital, mainly meant for Indian microfinance sector, says a report by London-based Responsible-investor. PGGM has made one of the world’s largest institutional commitments to microfinance in developing countries, with 200 million euros over the next two to three years. This is second allocation of the fund by PGGM. In March 2008, it had allocated 27 million euros to the Dexia Microcredit Fund operated by Swiss fund manager BlueOrchard Finance. With this, the fund will have 130 million euros meant for the microfinance sector. Full story

MF Focus, July 13, 2009: SME Rating Agency of India Limited (SMERA), a joint initiative of Small Industries Development Bank of India (SIDBI), Dun & Bradstreet and leading public and private sector banks, has launched rating services for Microfinance Institutions (MFIs), said a statement by the company. SMERA, which is presently offering enterprise ratings to Micro, Small & Medium Enterprises, has decided to launch MFI Rating services from this year. SMERA-MFI Rating will be an independent, third party comprehensive assessment of various risks involved in financial as well as social performance of an MFI. Full story

MF Focus, July 13, 2009: A new AccessBank Tajikistan has been set up with Access Microfinance Holding AG (AccessHolding) holding a majority stake at 50.5% and the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD), and Kreditanstalt fuer Wiederaufbau (KfW) holding the rest of the total US$ 11 million, says a report by Microcapital. Located in the Tajik capital, Dushanbe, the bank plans to open 17 branches outside Dushanbe. Full story

MF Focus, July 13, 2009: Habitat for Humanity, a non-profit housing organisation patronised by former US President Jimmy Carter, has decided to look for partners to set up a microfinance-based housing venture in India, reports The Economic Times citing confirmation by Habitat India managing director Felix Fernandes. Though the details of the new venture are not clear, Habitat India apparently plans to build 50,000 homes in the country over the next couple of years, since it would entail a huge opportunity of financing the basic requirements of the rural poor in India. Full story

MF Focus, July 8, 2009: MFX Solutions Inc., a new company dedicated to managing global currency risk in the microfinance industry, has announced the launch of its services in making modern hedging instruments accessible to microfinance lenders in developing markets. MFX has secured $13 million from 17 investors in its first round of financing, with Omidyar Network providing a commitment of $9.3 million. Full story

MF Focus, July 7, 2009: Close on the heels of India's largest microfinance institution SKS International, Hyderabad-based Share Microfin Ltd (SML), the second largest MFI in the country, is eyeing the IPO route in two years to raise funds for its expansion plans. Sector leader SKS has already made public its plan to go public next year. Full story