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Grameen Makes Business Ownership Possible for Poorest Women Worldwide

An equity investment from GF-USA enabled BlueOrchard Finance and Developing World Markets to consummate a $30 million guarantee from Overseas Private Investment Corporation (OPIC) for a bond offering with proceeds used to fund MFIs. The anticipated $40 million in total bond proceeds will be the largest microfinance offering to date. JP Morgan Securities will service the guaranteed bonds. Because they are guaranteed, this capital is considered as safe of an investment as an equivalent U.S. Treasury Note (commonly called T-bills). The proceeds will make available affordable loans for more than 40,000 micro-entrepreneurs – mainly women – in Latin America, Eastern Europe and Southeast Asia.“This is a solid investment for investors and a sound strategy for reducing poverty among the poorest people in the world,” remarked John Anderson, acting President of GF-USA. Microfinance has a desirable investment profile, offering lower risk than many might imagine. “Our statistics show that properly-managed microfinance loans average repayment of 97%, better than U.S. credit card and student loans, which experience default rates of 5% respectively,” disclosed Drew Tulchin, GF-USA’s manager of Capital Market Programs. GF-USA is a non-profit organization that combines microfinance, technology and innovation to help empower the world’s poorest to escape poverty by […]

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