Paris Microfinance Network

IFC Equity Investments in Latin America

Today, the IFC (International Finance Corporation) reinforced it's microfinance investment strategy in Latin America/mexico with an 18% equity purchase (roughly $7.1 million) of Banco Amigo, a new player in
Mexico’s microfinance sector. IFC’s investment in Banco Amigo provides long term funding for Banco Amigo to scale-up its loan portfolio as it begins to grow its portfolio and intermediate savings; and equity allows IFC to be a long term partner and support Banco Amigo’s regional expansion, and introduction of new products.

For Banco Amigo this surge of funding is great news to help expand their reach. They began operations in late 2005 as a non-bank financial institution and received its banking license in November 2006. In May 2007, Banco Amigo opened for business after receiving approval from Mexico’s National Bank and Stock Market Commission. The bank aims to place an emphasis on providing credit to low-income women entrepreneurs, as part of its mission to promote microfinance for smaller businesses. They currently offer loans up to 10,000pesos after providing an address & ID card, and they promise the cash within 24hours. Furthermore they offer savings accounts incentively tied to the credit accounts.

The Banco Amigo investment follows a recent string of IFC investments in MiBanco Peru of a US$7 million subordinated loan, a long term loan up to $29 mill, and an acquisition of a 6.5% stake in Mibanco, valued over US$6Mln. This is the 2nd financing agreement between MiBanco & the IFC. MIBANCO is Peru’s largest specialized microfinance bank with more than 170,000 clients across the country. To date, MIBANCO has provided more than one million loans to low-income individuals and small businesses in Peru, many of whom had little or no prior access to formal credit institutions.

AMEX Members Vote Grameen Foundation Into Top 25

We previously posted about the interesting funding initiative American Express has launched. Today we are thrilled to hear that the Grameen Foundation has been selected as a Top25 project submission and moves closer to winning up to $5 Million in financial funding if selected on August 7. Among the various microfinance projects submitted, Grameen is the only one to make it through the quarter-final round of voting.

Grameen Foundation’s project, “262: Microcredit to businesses in developing countries,” builds on the organization’s ongoing efforts to empower the world’s poorest people, mostly women, to lift themselves out of poverty through microfinance.  The new round of voting to select the final five projects started July 17 and runs until July 22; the final round of voting will be held July 24 to August 5.  Cardholders must cast a new vote in each round.  American Express will donate $1 for every cardholder who registers, up to $5 million. 

Cardholders can vote for Grameen Foundation at http://www.membersproject.com/Business_Finance/262.

American Express 'Members Project'

American Express has launched an interesting new initiative called 'The Members Project', giving American Express Cardmembers the chance to present an idea for funding that will have a positive impact in the world. American Express will fund one winning idea up to $5 million. Project ideas were submitted by cardmembers between May 15th and June 17th and the Top50 (amongst 7,000 submitted) projects were announced July 3rd. There were a wide range of project ideas submitted ranging from clean-water development and blindness prevention to tree-planting and alzheimer's reseach, to name a few. But most interesting, is that there are about 4-5 microfinance related projects which were submitted and have accumulated a good amount of votes.

Check out the variety of projects, the eclectic voting panel and vote if you are a cardmember. The Top 25 projects will be announced July 17th and then a new round of voting begins to narrow down the submissions.

The Members Project is unique in that the project ideas are not generated by American Express; they are generated by cardmembers. The Members Project runs for 12 weeks from May 15, 2007 to August 7, 2007. American Express will contribute $1 for each Cardmember that registers, up to $5 million. The donated amount will be determined by the number of Cardmembers who registered with The Members Project.