Leading Pakistani MFI Kashf Foundation Secures New USD 10m Cross-Border Funding ...

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Nov 2019
Pakistan, November, 25 2019 - Kashf Foundation, a leading women-oriented microfinance institution, contracted Emerging Markets Global Advisory Limited (EMGA) to structure and negotiate new financing. A few days ago, Kashf received a total of USD 10m from OeEB, the Development Bank of Austria.

As the Pakistan government secures the first tranche of new funding from the IMF, one Pakistan based organization has not only already secured new financing from overseas, they have mandated their advisor to secure additional credit lines.

Kashf Foundation, a leading women-oriented microfinance institution, contracted UK & US based Emerging Markets Global Advisory Limited (EMGA) to structure and negotiate new financing. A few days ago, Kashf received a total of USD 10m from OeEB, the Development Bank of Austria.

As a non-profit, microfinance organization licensed as a NBFC, founded by Roshaneh Zafar in 1996, Kashf is regarded as the first microfinance institution (MFI) of Pakistan that uses village banking methodology in microcredit to alleviate poverty by providing affordable financial and non-financial services to low income households – particularly for women, to build their capacity and enhance their economic role.

Recipient of many accolades, particularly in microfinance sector, it was awarded Microfinance Excellence Award by the Grameen Foundation and won the AGFUND Second International Prize for Microcredit, competing against 95 countries. In 2008, Kashf was ranked no. 34 among the Top 50 MFIs of the World by Forbes. In 2016, Kashf became the first MFI of Pakistan to win a European Microfinance Award for Microfinance and Access to Education.

Commenting on the transaction, Mr Shazad Iqbal, CFO of Kashf Foundation said “EMGA has successfully structured and negotiated a new foreign financing solution from an international organization and this will allow us to deliver on our stated mission : including the provision of quality and cost-effective microfinance services to low income households especially women. As we continue to grow, we have decided that additional financing will be needed in order to implement our expansion plans and we are delighted to extend our engagement with EMGA, tasking them to deliver additional financing."

Commentating on the transaction Emerging Markets Global Advisory Limited (EMGA)'s Managing Director and Co-Head of Investment Banking Sajeev Chakkalakal said “It was a pleasure to be able to communicate Kashf's vision about supporting MSME's within Pakistan and successfully structure and negotiate this funding solution with OeEB." Also speaking on the transaction, Emerging Markets Global Advisory Limited (EMGA)'s Managing Director and Head of Origination, Jeremy Dobson commented “Key to this transaction has been Kashf's strong management and Kashf's solid financial position, both were major factors that enabled Sajeev and EMGA's Investment Banking team to complete this operation with the solid institutional support and financial capacity that OeEB represent."

“Women are affected by several aspects of poverty significantly more than men. This is why we have anchored promoting gender equality as a core topic in our new strategy. Kashf is an excellent partner in this field with a longstanding track record of empowering female entrepreneurs by providing access to finance and trainings. We are very proud of our partnership and proud to contribute to improving gender equality in Pakistan by promoting women-led micro-enterprises", said Sabine Gaber, member of OeEB's executive board.



 

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