FINCA International and Deutsche Bank Announce First-Ever Single Microfinance Network Sub-Debt Deal

* Reuters is not responsible for the content in this press release.

Thu Nov 12, 2009 9:00am EST

Fund Enjoys Strong Interest from both Mainstream and Socially-Responsible
Investors 
WASHINGTON--(Business Wire)--
FINCA International, along with Deutsche Bank, today 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 fund,
which has only private sector investors was about 100 percent oversubscribed and
brings a new pool of investors to the microfinance industry. 

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. "As we approach the year of our 25th anniversary, it opens an
exciting new chapter for FINCA, allowing us to further expand our outreach to
lower-income entrepreneurs, while at the same time broadening the universe of
investors for the microfinance community as a whole. As a double bottom line
event, it`s definitely a win-win situation all round." 

"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. "This fund demonstrates the
attractiveness of that model to investors who have confidence in providing
capital to the poor for self employment where strong management models have
delivered continuing social impact and sound financial performance." 

Investors in the fund include mainstream pension funds and socially-responsible
private investors. "MetLife has a long history of investing in local
communities, and we are excited by the potential to reach the very poorest
through our investment in FINCA. By investing in microfinance, we are supporting
a sector that we believe has both commercial sustainability as well as the
potential to make a significant social impact," said Dennis White, Vice
President of MetLife's Social Investment Program. 

"I view FINCA and Deutsche Bank as two of the strongest and most socially
committed actors in the microfinance sector. The FINCA Fund puts our
foundation's capital to work in a highly leveraged manner that will truly
benefit the poor with new opportunities for economic empowerment," said Matt
McConnell, President of the Left Hand Foundation. 

About FINCA International

FINCA is a leading international microfinance organization that provides
financial services to the world's lowest-income entrepreneurs so they can create
jobs, build assets and improve their standard of living. For nearly 25 years,
FINCA has been committed to breaking the cycle of poverty by providing
community-based credit and savings opportunities. Currently, FINCA operates with
a distinctive, integrated business model that accepts donations and investment
dollars, an approach that leverages available capital and promotes greater
transparency, sustainability and higher standards of business practice. This
approach has allowed FINCA to achieve balanced financial and social performance
unmatched in the Microfinance Industry, while opening the path to socio-economic
development for some of the lowest-income citizens of the world. Based in
Washington, DC and with local operations across 21 countries, serving more than
730,000 clients, FINCA's outreach is among the broadest and most comprehensive
of today's microfinance networks. 

www.villagebanking.org. 

About Deutsche Bank

Deutsche Bank  is a leading global investment bank with a strong and
profitable private clients franchise. A leader in Germany and Europe, the bank
is continuously growing in North America, Asia and key emerging markets. With
78,530 employees in 72 countries, Deutsche Bank competes to be the leading
global provider of financial solutions for demanding clients creating
exceptional value for its shareholders and people. 

www.db.com

For FINCA International:
Diane Jones, 202-352-6475
Public Relations Manager
djones@villagebbanking.org
or
For Deutsche Bank:
Scott Helfman, 212-250-5602
Media Relations
scott.helfman@db.com

Copyright Business Wire 2009

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.