FINCA Int?l Announces Launch of FINCA Microfinance Holdings
Wednesday, June 22, 2011
Microfinance organization FINCA International (FINCA), recently announced the launch of a subsidiary called FINCA Microfinance Holdings, LLC (FMH).
FMH, will strike a balance between attracting capital needed for expansion and protecting the integrity of FINCA’s charitable mission. It is also expected to help FINCA nearly double its client base to 1.5 million people across its network of 21 programs in Africa, Latin America, Eurasia and the Greater Middle East, while maintaining its focus on financial services for the poor.
In addition, the creation of FMH will allow FINCA to provide savings accounts and insurance products, that clients can use to build safer, more secure livelihoods; and create efficiencies in the FINCA network that will help drive down its costs of doing business.
FMH was created to enable a three-year, $74 million capital investment from socially-responsible investment institutions that are committed to the microfinance sector and have long-term relationships with FINCA.
The International Finance Corporation (IFC), a member of the World Bank Group, will make its largest single equity investment in the microfinance sector through FMH at a total of $35 million. Other partners include KfWBankengruppe, the German development bank, which is investing $15 million, FMO, the Netherlands development bank, which is also investing Euros approximating $14 million, responsAbility Global Microfinance Fund, an investment fund advised by the Zurich-based asset manager responsAbility Social Investments AG, which is investing $5 million, and Triple Jump, a Netherlands-based microfinance investment manager, which is investing $5 million through the ASN-Novib Fund.