Bamboo Finance Acquires Accion Investment Fund in a US$105 Million
Landmark Transaction
LUXEMBOURG and BOSTON, Nov. 15, 2012 /PRNewswire/
-- Bamboo Finance, a global private equity group specializing
in microfinance and financing social entrepreneurship, announced
today that is has acquired a controlling interest in Accion
Investments in Microfinance, SPC, a private, for-profit equity fund
that has provided capital to microfinance institutions (MFIs) since
2003.
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"This US$105 million transaction
is a landmark for the industry," said Jean-Philippe de Schrevel,
CEO of Bamboo Finance, "It demonstrates the maturity of the sector
and its readiness for private investors."
Accion International ('Accion'), a global non-profit, launched
Accion Investments in 2003 as a for-profit entity to provide
commercial capital to MFIs working in challenging markets where
such funding was typically unavailable. Over its 10-year life, the
Accion Investments fund has returned 15.62 percent Internal Rate of
Return to shareholders through its socially-responsible impact
investments.
"As the sponsor of this fund, we are thrilled by its great
results," said Michael Schlein,
President and CEO of Accion. "Our vision is to build a
financially inclusive world where everyone has access to financial
tools that can improve their lives. To achieve this vision,
we must harness the private capital markets and that is the
significance of AINV's success. We have much more work to do
and today's transaction demonstrates the power of
double-bottom-line impact investing, which is a cornerstone of our
strategy."
The institutions represented in the AINV fund collectively
served a total of 386,000 borrowers and 245,000 depositors.
Today they're reaching almost 1 million borrowers and 1.2 million
depositors who might otherwise have had no access to financial
services.
"This demonstrates the strength of the investments, while at the
same time helping people living in poverty to improve their lives
through microfinance," Mr de Schrevel said.
Bamboo's Financial Inclusion fund is the largest microfinance
private equity fund with $195M AUM.
The Fund acquires minority stakes in their capital while playing an
active governance role by sharing international experience,
information, networks, knowledge and by taking an active role at a
board level. It has played a key role in facilitating the
transformation of several microfinance organizations into
full-fledged banks providing for the lowest socio-economic
segments.
Accion Investments has holdings in Microfinance Institutions in
Latin America, including Banco
Popular of Honduras, Paraguay's Banco Vision and Mibanco of
Peru. These investments represent significant stakes in
mature MFIs in the region.
Accion Investments' less mature investments, primarily in
sub-Saharan Africa, have been purchased jointly by Bamboo and
Accion's Gateway fund, and include shareholdings in Nigeria's Accion Microfinance Bank; EB-Accion
Savings & Loans in Ghana; and
EB-Accion Microfinance in Cameroon. In addition, Gateway has
purchased the AINV shares in BancoSol in Bolivia, and Akiba Commercial Bank in
Tanzania.
"This transaction complements our portfolio of investments,"
added Xavier Pierluca, Chief Investment Officer of Bamboo
Finance. "We are excited to provide continuity to the project
alongside Accion, and to further the financial inclusion work of
MFIs that are positioned for solid growth well into the
future. Many of these MFIs, as well as our current portfolio
companies, have moved well beyond Microfinance 1.0, starting to
offer micro-insurance and remittance services while still growing
at a fast pace."
Accion will continue to invest in MFIs as part of its overall
strategy, which is centered on helping to build the next generation
of top-tier MFIs, using impact investing to help push the frontiers
of microfinance beyond MFIs, and on helping to build a stronger
industry with high standards.
"When we launched the fund, 90 percent of its capital was public
money," said Enrique Ferraro,
managing director of Accion Investments. "Today, 90 percent
of it is private. That's attributable to the fund's return,
which we believe is a significant achievement for
socially-responsible investing. By attracting private capital
to MFI funding, we furthered our vision of building a financially
inclusive world."
About Bamboo Finance
Bamboo Finance, based in Luxembourg, is a commercial investment firm
managing US$ 250m, and represents a
unique portfolio of direct investments around the world.
Bamboo has offices in Bogota,
Singapore, San Francisco, Luxembourg and Geneva, and specializes in the financing of
global entrepreneurship. It uses a market-oriented approach
to deliver social value, environmental value and financial returns
to investors. For further information, visit
www.bamboofinance.com.
About Accion Investments in Microfinance, SPC
Accion International, a global non-profit 501c3, created Accion
Investments in Microfinance, SPC, a for-profit entity, in 2003 to
provide equity capital to microfinance institutions (MFIs).
Accion Investments' investors include both multi- and bi-lateral
governmental entities, as well as private investors from
the United States and
Europe. A seven-member board of directors nominated by its
largest shareholders governs Accion Investments.
About Accion
Accion is a global nonprofit dedicated to building a financially
inclusive world, with access to economic opportunity for all, by
giving people the financial tools they need to improve their
lives. A world pioneer in microfinance, over the last 50
years Accion has helped build 63 microfinance institutions in 31
countries on four continents. Those institutions are currently
reaching millions of clients. The Accion U.S. Network is the
largest microfinance network in the country and, since inception,
has served hundreds of thousands of clients with loans and support.
Accion's Gateway Fund is an equity fund that enables the nonprofit
to invest in emerging partner institutions. The fund currently
holds shares in MFIs in Bolivia,
Colombia, El Salvador, Haiti, India,
Mexico, Panama, Paraguay, Peru and Venezuela. For further
information, visit www.accion.org.
SOURCE Accion International