The Dutch development bank, FMO, provided
a five year loan for USD 10 million from the MASSIF fund to global microfinance
organisation VisionFund International (VFI). This transaction will especially
benefit rural communities and female clients from VisionFund’s African
microfinance institutions (MFIs). In
addition, FMO has also provided a USD 275,000 Capacity Development (CD)
grant to support VFI with an innovative approach to disaster resilient
microfinance.
VFI funds and manages a large
network of MFIs in developing countries and is focused on providing access to
finance in mainly unserved (rural) areas. The MFIs in VFI’s Africa network are
mostly rural-based and high scoring on social performance but lack the
necessary size to be funded directly by FMO. As a leading impact investor FMO
can play an important role in supporting the growth of these MFIs by providing
debt capital to VFI.
Mr. Scott Brown, President and CEO
of VisionFund International said: ”The
financing provided by FMO is important as it allows us to increase our range of
basic financial services and offer them to more communities that would
otherwise remain financially excluded. A very small and affordable loan
provides the opportunity to buy equipment or stock needed to set up a small
business and increase a family’s income. A small investment upfront can help to
remove the obstacles to self-sufficiency, not just for that one family, but also
for future generations.”
Mr. Jeroen Harteveld, Investment
Officer of FMO commented: “VisionFund
has built an impressive network of microfinance institutions across the globe
focusing on high impact markets in rural areas and on providing funds to female
entrepreneurs. The FMO financing is focused on supporting longer-term financial
access to these underserved communities thereby supporting poverty alleviation and
job creation.”
Photo (L-R): Mr.
Jeroen Harteveld (Financial Institutions - Africa Investment Officer, FMO), Mr.
Scott Brown (President & CEO, VisionFund International) and Mr. Bas Rekvelt
(Financial Institutions – Africa Manager, FMO), at the signing.
About FMO
FMO is the
Dutch development bank. FMO has invested in the private sector in developing
countries and emerging markets for more than 45 years. Its mission is to
empower entrepreneurs to build a better world. FMO invests in sectors where it
believe its contribution can have the highest long-term impact: financial
institutions, energy and agribusiness. Alongside partners, FMO invests in the infrastructure,
manufacturing and services sectors. With an investment portfolio of EUR 8
billion spanning over 85 countries, FMO is one of the larger bilateral private
sector development banks globally. www.fmo.nl
Press Contact: Paul
Hartogsveld p.hartogsveld@fmo.nl +
31 (0) 70 314 99 28
About VisionFund International
For over 10
years, as World Vision’s microfinance partner, VisionFund has been improving
the lives of children in the developing world by offering small loans and other
financial services to families living in poverty. Our clients are able to
develop successful businesses, which enable them to ensure their children grow
up healthy and educated. With over 1.1 million clients, VisionFund’s
microfinance institutions impacted close to four million children in the last
12 months through a network of institutions located in more than 30 countries
in Africa, Latin America, Asia, and Eastern Europe. Client repayment rates for
VisionFund loans remain consistently high at over 97% and VisionFund is a
signatory of the SMART campaign to uphold the highest industry standards and
ensure client protection.
Press contact: Miranda
Barham miranda@mirandabarham.com +44
(0)7899030304