To provide subordinated loans to seven microfinance institutions that are affiliated with FINCA International, which will supply them with a stable source of capital, attract additional senior funding and expand their lending. FINCA Microfinance Fund B.V. is a $21.2 million fund that has raised subordinated debt for seven affiliates of FINCA International, a leading international microfinance network with operations in more than 20 countries globally.
Through this fund, the seven FINCA affiliates (in the Democratic Republic of Congo, Mexico, Armenia, Azerbaijan, Kyrgyzstan, Georgia and Tajikistan) have received the financial flexibility to on-lend an estimated $100 million in additional loan capital, as well as make the investments in staff, branches and other infrastructure to support their expanding microfinance lending and deposit-taking programs. The fund, which was the first microfinance debt fund to close after the Lehman crisis and the first microfinance fund to be entirely composed of private sector investments, includes institutional investors and venture philanthropists, some of whom are investing in microfinance for the first time.
Fixed rate subordinated debt (Tier II capital qualifying)
Single draws up to $7,000,000
7 years, but no later than November 10, 2016
The fund is currently closed to new loans.
This fund is currently closed to new investment.