IFU CONTRIBUTES WITH ADDITIONAL CAPITAL FOR MICROFINANCE
IFU, Finnfund and a large Danish Family Office invest additional capital in BOPA (Base of Pyramid Asia) – a Singapore based holding company that invests equity in smaller and early stage microfinance institutions in Asia.
Since its beginning in 2013, BOPA has concluded investments in microfinance institutions (MFIs) in Vietnam, Cambodia, East Timor, Myanmar, Kazakhstan, Kyrgyzstan and Tajikistan, but with more capital the fund will be able to reach even more clients. The goal of BOPA is to reach over 2 million clients by 2022.
– This is a key milestone for us to attract institutional investors that are well aligned with BOPA. Our portfolio companies are growing fast and we are happy that we can continue to participate in the equity of these high growth institutions that help small entrepreneurs with access to responsible financial services, says Christian Andersen, CEO of BOPA.
IFU has several investments in the microfinance sector as it has proven to be a critical tool in the fight against poverty and the economic empowerment of especially women. Since IFU’s first investment in BOPA in 2015, the fund has continued the find attractive MFIs in frontier markets in Asia that have the potential to grow significantly in scale and development impact. Accordingly, IFU has now decided to contribute with additional capital in BOPA.
– Microfinance is an important instrument in creating new opportunities for people to grow their small businesses and improve their livelihood. Consequently, BOPA is providing a vital service, which we are glad to contribute to via our equity investment, says Otto Vinther Christensen, Investment Director in IFU.