Asian Development Bank and BlueOrchard Sign a $50 Million Risk-Sharing Agreement to Bolster Microfinance
The Asian Development Bank (ADB) and leading impact investment management firm BlueOrchard Finance Ltd have signed a $50 million risk-sharing agreement to expand microfinance coverage in ADB’s developing member countries (DMCs).
BlueOrchard is the first impact investing asset manager to partner with ADB’s Microfinance Program. Under the program, the company’s flagship fund, the BlueOrchard Microfinance Fund, will invest in selected microfinance institutions (MFIs) and banks. ADB will share the default risk of these investee entities to help expand the fund’s risk appetite and deployed capital into DMCs, and encourage greater flow of private sector funds to deepen financial inclusion.
“Loans provided by microfinance institutions are a lifeline to underserved clients such as low-income households and small businesses, including those which are owned or led by women, to help them withstand and rebound from the hardships imposed by the COVID-19 pandemic,” said ADB Director General for Private Sector Operations Suzanne Gaboury.
“This partnership will strengthen microfinance as a tool to build economic resilience, reduce gender disparities, and support recovery across our region,” added ADB Microfinance Program Lead Anshukant Taneja.
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