Accion's Bridge Guarantee Program, in operation since 2005, extends guarantees to help microfinance institutions (MFIs) all over the world access local lines of credit and take out loans. The Bridge Guarantee uses loans made to Accion by a variety of investors to provide MFIs with these guarantees. In this sense, it is both a lender and an investment opportunity for socially responsible investors who are interested in helping to support Accion’s vision of building a financially inclusive world.
The Bridge Guarantee evolved out of of Accion’s Latin America Bridge Fund (created in 1984). While that fund proved highly successful, its geographic reach was limited to Latin America and the Caribbean – and it only guaranteed lines of credit. The Bridge Guarantee plays a similar role but on a much broader scale, both geographically and in terms of the debt and credit instruments it provides to MFIs. In addition, Accion leverages the reach and scope of the program to pursue global expansion.
Loans made to the Bridge Guarantee must be for a minimum of U.S. $2,000 and for a term of at least 18 months. Maximum loan amounts and terms are unrestricted. Lenders may select an interest rate from the ranges listed below (based on the amount and term of the loan). Interest payments are made semi-annually in June and December. Rates for loans greater than U.S. $100,000 with tenor longer than five years are negotiated separately.
For further information about the Bridge Guarantee, call us at (202) 393-5113 or email us at firstname.lastname@example.org.