NEW YORK--(BUSINESS WIRE)--Deutsche Bank announced today it has reached the USD 100 million commitment target for Global Commercial Microfinance Consortium II (“Consortium II”), a first-ever fund to support the growth of microfinance institutions (“MFIs”) that pursue a high level of client care, transparency of operations and pricing, and product innovation.
Consortium II’s goal is to encourage and facilitate a renewed focus on client service and product innovation in microfinance, while continuing to develop the field of social investing. To date, Consortium II has supported more than 30 client-focused MFIs operating in Eastern Europe, Latin America, and Asia. In addition to loan capital, Consortium II borrowers have access to technical assistance to improve customer service and achieve Smart Campaign certification for the Microfinance Client Protection Principles, which aims to embed client protection practices into the institutional culture and operations of the microfinance industry.
Consortium II also provides new opportunities to invest in social enterprises in the fields of healthcare, education, energy, agribusiness and technology that operate at the base of the economic pyramid. Consortium II has already disbursed a USD 2 million loan to the Indian School Finance Company, a unique social enterprise that provides debt capital for affordable private primary schools in low-income neighborhoods in India.
Consortium II represents a partnership with investors who share a focus on responsible microfinance, including AXA France VIE, AXA Germany, Calvert Foundation, CNP Assurances, Développement international Desjardins (DID), Everence Community Investments, KfW, Left Hand Foundation, Money in Motion LLC, Overseas Private Investment Corporation (OPIC), State Street, Swedish International Development Cooperation Agency (SIDA), Storebrand and University of Denver’s Daniels College of Business.
“Global Commercial Microfinance Consortium II aims to provide access to much-needed capital for microfinance institutions that make customer service a priority,” says Jacques Brand, Chief Executive Officer, North America, Deutsche Bank. “We are pleased to be working with such esteemed investors who share our passion for stabilizing and improving the lives of the underbanked.”
“In addition to financial support and technical assistance, the new fund provides the MFIs the toolset to continue implementing and improving a culture of customer focus,” says Gary Hattem, Managing Director, Community Development Finance Group, Deutsche Bank. “Deutsche Bank, alongside this group of investors, is committed to supporting microfinance institutions with a client-centric culture.”
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
To learn more about Consortium II, please view a video here.
