Grameen Foundation : What we do : Capital Mgmt & Advisory : Growth Guarantees
Growth Guarantees
Supporting the growth of high-performing microfinance institutions
Grameen Foundation's first capital markets product is Growth Guarantees, one of the microfinance industry's largest financing efforts dedicated to ensuring adequate liquidity for fast-growing MFIs. Developed in cooperation with Citigroup and nine donor-guarantors, the Grameen Foundation Growth Guarantees is anticipated to amass $50 million for disbursements as loan guarantees.
The initial $31 million tranche of Growth Guarantees was closed in October 2005. The product is designed to be flexible enough to be applied to MFIs around the globe. Each guarantee dollar is expected to be leveraged several times for the MFI in their local currencies through a variety of transaction structures such as direct loans, securitizations, and bond issues customized to meet local financial regulations and the MFIs' needs. Already completed transactions in Tunisia, Bolivia, the Philippines, India, and Nicaragua have shown how it can leverage large amounts of commercial finance in diverse markets.
The program is designed to support high-performing MFIs aspiring to expand rapidly and capable of managing large amounts of commercial financing. The program is made possible by nine individuals who share the mission and vision of Grameen Foundation. These high net worth individuals do not make a direct financial contribution; instead, they participate by providing their names and credit while continuing to earn returns on their individual investment portfolios.
The structure of Growth Guarantees innovatively enables MFIs to borrow in their own local currency, thereby, mitigating foreign exchange risk. Grameen Foundation’s Capital Management & Advisory Center plays a pivotal role in negotiating and facilitating commercial financing for MFIs.
Grameen Foundation Growth Guarantees Fact Sheet >
Capital Management & Advisory Center Closed Transactions >
Grameen Foundation : What we do : Capital Mgmt & Advisory : Growth Guarantees
Grameen Foundation uses microfinance and innovative technology to fight global poverty and
bring opportunities to the world's poorest people. With tiny loans and financial services, we help the poor, mostly women, start
businesses and escape poverty. Our global network of 52 microfinance institution (MFI) partners including our Growth Guarantee partners has touched more than 31 million people in 23 countries. In addition, we introduced and now sustain technology initiatives (Mifos and Village Phone) in Cameroon, Kenya, Rwanda, and Uganda, bringing our total country outreach to 27.
+1-202-628-3560 www.grameenfoundation.org
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