Morgan Stanley Announces Creation of Microfinance Group
London, United Kingdom, September, 07 2007 -
Morgan Stanley today announced the formation of the Morgan Stanley Microfinance Institutions Group (“MFIG”), the first time that an investment bank has established a group dedicated to serving microfinance institutions (“MFIs”). The group will seek to provide a wide range of investment banking services to MFIs, networks and other market participants, from debt and equity capital to corporate advice, risk management, foreign exchange and derivative products. It will also structure and distribute microfinance investment funds.
This initiative builds upon two successful international capital market transactions arranged by Morgan Stanley, the BOLD CLOs of 2006 and 2007, which have placed some US$210 MM in seven currencies with 33 MFIs in 15 countries.
MFIG will be based in London and New York, but operate globally. The group will be led by Ian Callaghan and will report to Ellen Brunsberg, head of the European Securitized Products Group. It will have 12 professional staff, of nine nationalities and speaking 11 languages, including many of those used in the major microfinance markets. Members of the group have experience of development finance and microfinance in Latin America, Africa, Asia and Europe, as well as expertise in the areas of structured finance, investment banking, credit analysis, investment management and global capital markets. In addition MFIG will be able to rely on the full resources of Morgan Stanley for specific projects.
Ian Callaghan, the head of MFIG, said that the creation of the team demonstrates Morgan Stanley’s commitment to assisting in the growth of the microfinance industry worldwide. “We believe that MFIs are no different to other financial institutions in having a wide range of needs.
What we have done is to form a group which can transact at levels relevant to these institutions, as well as the networks and other key players involved in the microfinance industry. We will also be looking to satisfy the interest of our clients in investment opportunities in microfinance.”