ADB Invests $32 M in Microfinance Firm for Asian Women
Asia, March, 23 2017 -
Manila-based Asian Development Bank (ADB) signed yesterday a $32-million equity investment agreement with CreditAccess Asia (CAA), an Amsterdam-based microfinance holding company which has operations all over Asia.
ADB said the investment would provide CAA with growth capital for its Asian microfinance operations. The company, in turn, can support ADB’s objective of widening financial inclusion across the region. The bank is also providing CAA a $500,000 technical assistance grant to help it expand its operations where it is most needed.
CAA has 1.8 million customers across Asia, 99.8 percent of whom are women.
“Through this investment, ADB and CAA will help to deepen access to credit and finance for some of Asia’s most underserved markets,” said Christine Engstrom, ADB’s director for the Private Sector Financial Institutions Division. “CAA provides significant support in the communities in which it operates and we are happy to support them and their Asian microfinance subsidiaries through their next stage of growth.”
CAA, as the holding company, will use ADB’s assistance to capitalize and expand operations of its subsidiary microfinance companies, the largest of which is Grameen Koota in India.
The holding firm also has operations in Indonesia, Philippines and Vietnam. Through the equity investment, CAA is expected to to be able to service the financing needs of 3.5 million women borrowers by 2021.
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“We are very pleased to have ADB on board as a strategic shareholder in CAA. ADB fully supports our mission to become a leading provider of financial products for micro and small businesses in India and Southeast Asia,” said CAA chief executive officer Paolo Brichetti.
“Given the critical institutional role of ADB in the region and its experience in supporting financial services across Asia, we are confident to have established the right partnership to accomplish our plans and to meet our customers’ needs. We have built a unique relationship over time with our clients and we aim to be recognized as their key financial and business partner,” he added.