Microfinance Forum 2009 (5.Grameen Pioneer Fund)

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2009/11/15JICALIP200923. Christopher Tan (, )


  • 1. CreatingaWorld WITHOUT POVERTY Living in Peace Forum November 15, 1 2009
  • 2. Overview Grameen Foundation Programs SPM Technology Forgotten Bottom CMAC CMAC Products Growth Guarantee Pioneer Fund 2
  • 3. Our Global Reach Headquarters: Washington, DC Regional offices planned for Asia and sub- Grameen Technology Center: Seattle, WA Saharan Africa 3
  • 4. GF Programs 4
  • 5. Social Performance Management THE CHALLENGE Helping microfinance institutions create systems of accountability around their social goals OUR STRATEGY Developed Progress out of Poverty Index Objective client poverty assessment tool Already PPIs for 21 countries Establishing industry standard 5
  • 6. Serving the Worlds Poorest People THE CHALLENGE Breaking down barriers to reaching the poorest people with microfinance and technology OUR STRATEGY Identify, test, scale and replicate solutions that Provide financial tools Give access to business opportunities 6
  • 7. Technology for Microfinance THE CHALLENGE Increasing efficiency of microfinance organizations OUR STRATEGY Mifos: open source microfinance technology platform Successfully deployed in five organizations Technology readiness: helping organizations adopt and manage new technology 7
  • 8. Technology For Development THE CHALLENGE Giving poor people access to relevant information and business opportunities OUR STRATEGY Establishing cell phone business opportunities Providing vital information and services such as health and agriculture via cell phones 8
  • 9. Access to Commercial Capital THE CHALLENGE Microfinance institutions need financial tools and resources to help them grow and expand efficiently OUR STRATEGY Growth Guarantees: $60 million program guarantees loans in local currency from local banks Pioneer Fund: direct investment in smaller institutions working in poorest communities Advisory Services/Investment Readiness Trainings 9
  • 10. Growth Guarantee Program The basics First US$31 million round launched in November 2005 with 9 Donor Guarantors. GF is currently inviting new Donor Guarantors to join the program, bringing total program size to $60 million. Current commitment is $54.5 million. How does it work? Donor Guarantors use their credit, not their money: Program supporters do not make a direct financial contribution. They participate by providing their names and credit while continuing to earn returns on their individual investment portfolios. By working through local banks, GF generates over $4 in micro-loans for each $1 of guarantee commitment. 100% of a Guarantors commitment goes to leveraging micro-loans for the poor. Who does the program support? Poverty-focused microfinance institutions (MFIs) aspiring to expand rapidly and capable of managing large amounts of commercial financing. GF works with a select group of leading MFIs around the world with excellent track records in financial and operational performance, strong management teams, and poverty focus. 10
  • 11. Pioneer Fund Investment Objective The Pioneer Fund (initial capitalization of $10 million) endeavors to catalyze the microfinance industry towards the large-scale provision of financial services tailored to the poor in underserved markets. Investment Focus The Pioneer Fund will provide senior loans, subordinated loans and standby letters of credit to institutions that have a strong potential to achieve the its investment objective but lack the required funding. Investments will be targeted to the following chronically capital-constrained entities: High Potential Tier III Microfinance Institutions (MFIs) Primary Focus High potential early-stage MFIs who can become tomorrows industry leaders and achieve the Pioneer Fund objectives on a large scale. Industry Pioneers Secondary Focus Innovators with the potential to catalyze the microfinance industry towards achieving Pioneer Fund objectives, particularly through a demonstration effect. Limited to 25% of total capital deployed MFIs which are young, small, at or near profitability and not commercially funded are considered Tier III. 11
  • 12. Contact Information Jennifer Meehan, CEO, Asia + 852.2529.6300 jmeehan@grameenfoundation.org Mike Gabriel, Asia Product Manager, CMAC + 63.917.568.0894 mgabriel@grameenfoundation.org Christopher Tan, Country Director, Philippines + 63.917.507.8030 ctan@grameenfoundation.org 12


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