ACCION Global Bridge FundThe ACCION Global Bridge Fund (GBF) was created to expand the reach of microfinance throughout the world and has been fully operating since January 1, 2005. While the ACCION Latin America Bridge Fund (created in 1984) proved to be a success, its geographical coverage is limited to Latin America and the Caribbean and it guarantees only credit lines. The ACCION GBF plays a similar role as the ACCION LABF but on a much more global, ample, and flexible scale. The ACCION GBF supports ACCION's strategy to pursue a global expansion, through technical and financial assistance in Latin America, the Caribbean, Africa and other regions of the world where ACCION may expand as part of its strategic mission. In addition to lines of credits, the ACCION GBF guarantees the issuance of fixed-income instruments. The ACCION Global Bridge Fund uses loans from investors to: - Provide microfinance institutions located in Latin America, the Caribbean, Africa and other regions of the world with guarantees to access local bank lines of credit and to issue debt instruments.
Geographical Coverage – The ACCION Global Bridge Fund has a broad geographical scope, enabling socially responsible investors to help provide business credit to some of the poorest economically active people in several different regions of the world. Participating Institutions – The ACCION Global Bridge fund will provide its services not only to the microfinance institutions members of the ACCION network, but also to other select microfinance institutions with which ACCION either has had a long-standing business relationship or wants to develop a new strategic partnership. Flexibility – The ACCION Global Bridge Fund guarantees not only lines of credits but also the issuance, by micro finance institutions outside the ACCION network, of fixed-income instruments. As ACCION expands to additional geographical areas, develops more products, and penetrates more markets, it will need global and flexible funding vehicles to support microfinance institutions. The ACCION GBF is intended to fulfill this objective.
Aggregate Amount Offered. | Up to $15,000,000 | Promissory Note Denominations. | Minimum Promissory Note Amount of $2,000 | Maximum Promissory Note Amount. | Unrestricted. | Promissory Note Interest Rates. | Each Lender to the ACCION Global Bridge Fund may select a rate of interest for his or her Note from the ranges listed below based on the amount and term of such Note. Rates for notes greater than $100,000 with tenor longer than 5 years are separately negotiated between the fund and the lender. | Interest Payment Dates. | Semi-annually on June 30th and December 31st. | Loan Maturity Dates. | Minimum Maturity: | 18 months | Maximum Maturity: | Unrestricted | ACCION GLOBAL
BRIDGE FUND | $2,000-$25,000 | $25,001-$50,000 | $50,001-$100,000 | >$100,000 | 18 months | 0%-0.70% | 0%-0.80% | 0%-1.00% | 0%-1.10% | 19 months to 3 years | 0%-1.10% | 0%-1.20% | 0%-1.60% | 0%-2.00% | 3 years to 5 years | 0%-1.50% | 0%-1.65% | 0%-2.00% | 0%-2.50% |
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The guidelines and proposed interest rates of the Notes are subject to change prior to sale at the sole discretion of the Fund. The rate represents simple interest calculated on an annual basis on the unpaid balance of the Note. The Fund accepts fixed rate Loans only. ACCION encourages its prospective Lenders to consider the Fund's charitable purposes in deciding the terms of their Loans. In unusual circumstances the Fund may consider accepting Notes that deviate from the guidelines set forth above if it determines that such Loans would be in the best interests of the Fund.
The ACCION Global Bridge Fund will not accept a loan from anyone who has not received and read a copy of the “ACCION GBF Private Offering Memorandum” To request a Private Offering Memorandum, to receive further information about the Fund or to make a loan, please contact:
Pablo F. Rieckhof
ACCION International
1401 New York Avenue, NW
Suite 500
Washington, DC 20005 USA
Tel: (202) 393-5113 x1636
Email: financialservices@accion.org
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