Azerbaijan, Baku, Nov. 21 / corr Trend N.Ismayilova /
FINCA International, along with Deutsche Bank, announced that they have secured total capital commitments of $21.2 million for the FINCA Microfinance Fund B.V., the first-ever single microfinance network sub-debt deal.
The FINCA Microfinance Fund is the first microfinance subordinated debt deal to be completed since 2007 and was structured, placed and managed by Deutsche Bank. The offering will provide FINCA affiliates in the Democratic Republic of Congo, Mexico, Armenia, Azerbaijan, Kyrgyzstan, Georgia and Tajikistan 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 its expanding microfinance lending and deposit-taking programs.
Through the facility, and based on its average network-wide loan size of $503, the seven FINCA affiliates will be positioned to provide an estimated 150,000 additional microloans each year to some of the world's lowest-income entrepreneurs.
"This new financial facility represents an important breakthrough for both FINCA and the microfinance industry," said Rupert Scofield, President & CEO of FINCA International. "
"FINCA International's long term performance and commitment to a sustainable and socially-responsible microfinance sector aligns closely with Deutsche Bank's own strategy and commitment to the sector," said Gary Hattem, Managing Director of Deutsche Bank's Community Development Finance Group.
FINCA Azerbaijan is a share of micro financial organizations of FINCA International performing in 22 countries. Organization has been operating in Azerbaijan since 1998 through support of the United States Agency on International Development (USAID). FINCA Azerbaijan has 55 branches in the regions of the country.
On Sep. 1, FINCA Azerbaijan's combined assets made up $80.12 million and total funds amounted to $14.85 million. The micro-credit portfolio made up $63.04 million. The organization's active clients numbered 81,381.