MicroVest Capital Management, a US-based microfinance investment firm, and global investment bank Lehman Brothers close on the MicroAccess Trust 2007. This marks the first Collateralized Loan Obligation (CLO) for MicroVest. The trust was arranged by Lehman Brothers, while MicroVest originated and services the USD 39 million portfolio of unsecured loans to microfinance institutions (MFIs) around the world.
According to Greg Gentile, Head of Emerging Markets Structured Credit Trading at Lehman Brothers, the MicroAccess Trust “consists of one class of securities purchased entirely by commercial emerging market investors.” The trust will finance 10 MFIs in 8 different countries, reaching an expected 25,000 poor individuals with hard currency, five-year loans, according to an EMediaWire.com story. Countries include: Bolivia, Bosnia, Ecuador, El Salvador, Nicaragua, Montenegro, Peru and Romania.
MicroVest is a global microfinance intermediary founded in 2003 that provides financial capital to established microfinance institutions (MFIs) in emerging markets. It is based in Bethesda, Maryland and was founded by CARE, MEDA, and the Seed Capital Development Fund. These are three non-profit organizations with investments in the microfinance industry. MicroVest’s core fund, MicroVest I, LP, is a private equity fund providing debt and equity capital to 19 MFIs in 13 developing countries, supporting 675,000 clients (see MIX Market profile). As of December 31, 2006, its total portfolio stood at USD 22.5 million.
–Chryssa Rask, MicroCapital Writer
Additional Resources:
EMediaWire.com: MicroVest Closes US$39 Million CLO
MicroVest I, LP: MicroVest News, Quarter ending December 31, 2006
The MIX Market: Profile: MicroVest I, L.P.
