drew at socialenterprise.
11-17-2004, 09:14 PM
Grameen Foundation USA Capital Markets White Paper
Dear Colleagues,
I am pleased to share with you "Tapping the Financial Markets for
Microfinance", a white paper commissioned by Grameen Foundation USA that
explores the opportunities and challenges micro-finance institutions face in
tapping capital markets for financing their growth. It was written by
Jennifer Meehan, a consultant with deep insights into the micro-finance
movement and the mainstream financial sector.
The paper is available for free download online at:
http://www.gfusa.org/programs/capital_markets/
<BLOCKED::http://www.gfusa.org/programs/capital_markets/>
As you may know, micro-finance industry's outreach and impact on world
poverty is growing. More than 60 million poor families are now
participating with a micro-finance institution; the estimated world
portfolio is valued in the billions, and industry growth has averaged 30% a
year (according to Virtual Library of Microcredit). However, the estimates
of the total demand being met range between 10% and 20% in terms of client
outreach, and less than 5% in terms of amount lent. The estimated capital
requirements are billions more than the current supply that historical donor
funding can fulfill. Therefore, the question of leveraging scarce
philanthropic resources to attract much larger amounts of commercial capital
becomes critical.
The paper details case studies of recent successful capital market
transactions, identifies barriers to replicating these deals more widely,
seeks to de-mystify the issue of attracting commercial investment to
micro-finance institutions (primarily for the benefit of micro-finance
institution managers), and provides action items for the industry to
accelerate recent progress in this direction.
Please feel free to circulate this paper to others, and we welcome your
thoughts on the subject.
Sincerely,
Andrew (Drew) Tulchin
Grameen Foundation USA
dtulchin@gfusa.org
202-628-3560 x123
This post transferred from the cdb-l mailing list
Dear Colleagues,
I am pleased to share with you "Tapping the Financial Markets for
Microfinance", a white paper commissioned by Grameen Foundation USA that
explores the opportunities and challenges micro-finance institutions face in
tapping capital markets for financing their growth. It was written by
Jennifer Meehan, a consultant with deep insights into the micro-finance
movement and the mainstream financial sector.
The paper is available for free download online at:
http://www.gfusa.org/programs/capital_markets/
<BLOCKED::http://www.gfusa.org/programs/capital_markets/>
As you may know, micro-finance industry's outreach and impact on world
poverty is growing. More than 60 million poor families are now
participating with a micro-finance institution; the estimated world
portfolio is valued in the billions, and industry growth has averaged 30% a
year (according to Virtual Library of Microcredit). However, the estimates
of the total demand being met range between 10% and 20% in terms of client
outreach, and less than 5% in terms of amount lent. The estimated capital
requirements are billions more than the current supply that historical donor
funding can fulfill. Therefore, the question of leveraging scarce
philanthropic resources to attract much larger amounts of commercial capital
becomes critical.
The paper details case studies of recent successful capital market
transactions, identifies barriers to replicating these deals more widely,
seeks to de-mystify the issue of attracting commercial investment to
micro-finance institutions (primarily for the benefit of micro-finance
institution managers), and provides action items for the industry to
accelerate recent progress in this direction.
Please feel free to circulate this paper to others, and we welcome your
thoughts on the subject.
Sincerely,
Andrew (Drew) Tulchin
Grameen Foundation USA
dtulchin@gfusa.org
202-628-3560 x123
This post transferred from the cdb-l mailing list