Press Release: FINCA Impact Finance Secures $15 million Revolving Loan Facility from Calvert Impact Capital
FINCA Impact Finance (FIF), a network of 20 microfinance institutions and banks, announced today that it has secured a $15 million loan facility with a five-year tenor from Calvert Impact Capital. This facility provides FIF with an ideal mix of credit-line efficiency and long-term, stable liquidity for on-lending to FIF subsidiaries to support microentrepreneurs and small businesses across the world. A portion of the funds can be used for working capital or long-term investments, such as advancing its network-wide digital transformation.
“We appreciate the continued confidence and support of our many lenders, like Calvert Impact Capital, who recognize the strength of the FIF network and our track record of social and financial performance,” said Roman Hingorani, Chief Financial Officer at FIF. “With this facility, FIF will maintain significant funding capacity, putting us in a strong position during a challenging time. Calvert Impact Capital has supported the FIF network, through direct lending to FINCA affiliates or indirectly through their partnerships with other microfinance investment vehicles, for many years and we look forward to many more.”
Demand for FIF’s products has grown steadily; the network ended 2019 with a gross loan portfolio of $854 million USD and 2.6 million clients, a 13% increase in clients over 2018. FIF has transformed its business model by leveraging digitization while maintaining a robust physical branch network. Through investment in call centers, data collection, digital field automation and credit scoring, as well as launches of mobile, online and agency banking, FIF is advancing financial inclusion in some of the most challenging emerging markets in the world.
“Calvert Impact Capital has been a longtime investor in the microfinance sector and we’re proud to continue supporting financial inclusion by offering an innovative product to FIF,” said Songbae Lee, a Director of Investments at Calvert Impact Capital. “FIF’s dedication to serving vulnerable populations, extensive community-based network, and nearly 40 years of experience delivering solutions to financially-excluded populations make them an ideal partner. Their work is needed now more than ever.”
Photo courtesy of Peter Haden.