OPIC Provides Groundbreaking Loan to FINCA Microfinance Holding Company
March 20, 2014
(OPIC)
WASHINGTON – In a ceremony held March 14, the
Overseas Private Investment Corporation, the
U.S. government’s development finance
institution, recognized the closing of a $45
million loan to the FINCA Microfinance Holding
Company, LLC (FMH). OPIC’s loan is a pioneering
one for the global microfinance company. Both
the $45 million amount and the loan’s
seven-year tenor are substantial expansions of
FINCA’s previous financing agreements. The OPIC
loan will broaden outreach and services
benefitting low-income clients of FINCA’s
microfinance subsidiaries in OPIC-eligible
countries on three continents.
The OPIC loan is one of the largest credit
facilities of its size committed to FINCA’s
innovative form of microfinance business model.
Typically, small, unrelated microfinance
companies are members of a network but are not
owned and operated homogenously as part of one
organization. FINCA International structured
FMH to hold and operate FINCA’s microfinance
subsidiaries in 22 countries, ensuring
consistency in services, client protection and
standards, and providing opportunities for
FINCA to deliver expanded products and services
to their one million clients.
“We are thrilled to have a new partner like
OPIC that understands the emerging markets
where FINCA works. This new facility has the
flexibility to allow FINCA Microfinance
Holdings to deploy liquidity where it is needed
most and in a timely manner, which will make
our global operation more efficient and
effective. We look forward to a long and
mutually beneficial relationship,” said Rupert
Scofield, FINCA’s President and CEO.
“FINCA’s global reputation in microfinance is
proven and outstanding, and I’m proud to
recognize OPIC’s support to furthering their
impressive work,” added Elizabeth Littlefield,
OPIC’s President and CEO. “FINCA’s focus
stretches from Haiti to Pakistan to the
Democratic Republic of Congo as well as
countless other places where development impact
through microfinance is most needed. And
FINCA’s emphasis on client protection
principles in its lending practices aligns with
OPIC’s own policies for supporting investment.
This OPIC loan will help FINCA to reach its
growth targets and send a positive message to
investors that FINCA is an institution with a
mission worth supporting.”
The loan agreement was officially executed by
both parties on February 24, 2014. The
recognition of the transaction was commemorated
at FINCA International’s headquarters in
Washington, D.C. OPIC’s President and CEO,
Elizabeth Littlefield and FINCA Microfinance
Holding Company’s President and CEO, Rupert
Scofield endorsed the ceremonial declaration to
recognize their important mutual commitment to
delivering access to funding to financially
underserved populations.
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