OPIC Board Approves $25 Million to Support Micro and SME Lending

Nov 2009
Washington, United States, November, 24 2009 - The Board of Directors of the Overseas Private Investment Corporation (OPIC) approved a $25 million loan to a parent company of 22 development-oriented banks. Proceeds of the loan will be used to expand lending to micro and small and medium-sized enterprises (SMEs) at a time when sources of financing have diminished due to the global financial crisis.

The OPIC loan will provide ProCredit Holding (PCH), one of the most successful organizations globally in creating financial institutions that provide finance for micro and small businesses in developing countries, with capital in order to expand their lending.

OPIC has partnered extensively with ProCredit institutions during the last several years, including loans to ProCredit institutions in Ukraine and Moldova. The ProCredit group has performed steadily throughout the global financial crisis.

“This project will provide ProCredit Holding – an important OPIC partner and premier development finance institution – with the ability to strengthen and diversify its capital base that it needs to expand at a time when other potential sources of financing have diminished,” OPIC Acting President Dr. Lawrence Spinelli said. “We are pleased to deepen our partnership with ProCredit Holding at time when capital for micro and SME lending is truly needed.”

PCH was founded in 1998 by Internationale Projekt Consult GmbH, a German consulting company, as an investment company for investing in the network of ProCredit banks. As of the end of 2008, the Group had 814 branches and over 21,000 employees worldwide.

U.S. sponsors of PCH are TIAA-CREF, a national financial services organization and the leading provider of retirement services in the academic, research, medical and cultural fields; and the Omidyar-Tufts Microfinance Fund, which invests in the financial services sector in emerging markets, seeking to demonstrate the viability of commercial investment in microfinance to institutional investors.

Source : OPIC

Research Analysis Tools

The fund indexes, institution benchmarks and other market information displayed here are all Symbiotics designed analysis tools, created in-house by our analysts and experts. Symbiotics has one of the oldest track records in microfinance investment analysis dating back to the late 1990s; its indexes and benchmarks have been regularly used as markers by investors, asset managers, financial institutions and practitioners. These, as well as several other research products, are available through the Research Account. Click on the link below to find out more.

Learn More