ACCION Investments in Microfinance, SPCACCION Investments in Microfinance, SPC (ACCION Investments), an offshore segregated portfolio company, has been sponsored by ACCION International to provide equity and quasi-equity financing to microfinance institutions (MFIs) worldwide. With capital and capital commitments of just under US$50 million, ACCION Investments’ investors include both multi- and bi-lateral governmental entities as well as private investors from the United States and Europe. A seven-member board of directors representing its largest shareholders governs ACCION Investments.
About ACCION Investments
ACCION Investments has been designed to be a flexible investment vehicle of indefinite duration that will provide a permanent increase of equity capital to MFIs. With a parallel technical assistance facility that has US$2 million in commitments, ACCION Investments can provide the ongoing technical support to institutions that is vital to their long-term growth. The investment company also plays an active role in the corporate governance of these MFIs through representation on their boards of directors.
ACCION Investments has retained the services of ACCION Investments Management Company, LLC (AIMCO), a Boston-based, wholly owned subsidiary of ACCION International, to provide management services to the company.
ACCION Investments intends to invest in MFIs worldwide that meet stringent investment criteria relating to their operations, management and financial strength. These MFIs might be established entities, start-ups, organizations transforming from nonprofit to regulated status, institutions merging with or into other financial entities, or special purpose companies related to commercial banks. Currently, the Company’s assets consist primarily of equity investments in microfinance institutions in Latin America and Africa, including ACCION Microfinance Bank LTD, Nigeria, Akiba Commercial Bank LTD, Tanzania, Banco Solidario S.A., Ecuador, BancoSol, Bolivia, Banco Popular Covelo, S.A., Honduras, Banco Vision, S.A. E.C.A., Paraguay, Columbia Microcreditos, S.A., Argentina, Eco ACCION Senegal, Senegal, Financiera FAMA, S.A., Nicaragua, Mibanco, Peru, and and EB-ACCION Savings & Loans, Ghana.
Background
As MFIs worldwide continue their rapid growth, their need for equity capital grows with them. Patient capital is needed for these MFIs to continue forging the link between grassroots lending and the financial mainstream. Existing investment vehicles that provide equity financing to MFIs are often of very limited duration and structured in ways that require the liquidation of underlying investments for investors to exit. As an investment company of indefinite duration, ACCION Investments represents a permanent addition to equity capital available to MFIs.
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