MICROCAPITAL BRIEF: Microinvest of Moldova, FINCA Armenia borrowing $ 14 million from agents for microfinance impact


Agents for Impact (AFI), a Germany-based impact investment firm, recently informed MicroCapital that it has issued approximately half of the total value of the following loans: € 10 million ($ 12 million) in two tranches at Microinvest from Moldova and $ 2.5 million to FINCA Armenia, a unit of FINCA Impact Finance based in the United States. AFI disbursed the entire loan to FINCA Armenia and thirty percent of the loan to Microinvest, with the remainder to be issued in December 2021. AFI aims to bring investors together to advance towards the United Nations Sustainable Development Goals.

Microinvest, majority owned by the Balkan Financial Sector Equity Fund, offers secured and unsecured loans for businesses, agriculture, housing, vehicles and consumption. These loans range from 2,000 MDL (120 USD) to 4 million MDL (240,000 USD), with terms of 3 months to 7 years. Microinvest has an outstanding MDL 1.9 billion (USD 114 million) portfolio for 35,000 clients in 2020. About two-thirds of these clients live in rural areas, and the male to female ratio is roughly equal.

FINCA Armenia offers loans – digitally and in person – for small businesses, agriculture and solar equipment. It serves approximately 21,000 men and 12,000 women with a portfolio of 43 million USD as of December 2020. FINCA Impact Finance is a for-profit entity partially owned by the American NGO FINCA International, which was launched in 1984 under the name of Foundation for International Community. Help (FINCA International). FINCA Impact Finance comprises 20 banks and microfinance institutions providing savings, credit and other services to 2.6 million clients in Africa, Eurasia and Latin America. Among its programs is FINCA Ventures, which has eight investments from 2021 in the form of “patient capital and technical assistance to social start-ups to support innovation in energy, water / sanitation / hygiene, education, health, agriculture and financial technologies. [financial technology]. “

AFI, which was founded in 2018 and headquartered in Frankfurt, discloses the volume of its operations.

Additional sources and resources

Direct contact with AFI

Microinvest home page

FINCA Impact Finance profile on FINCA Armenia

FINCA International homepage

United Nations Sustainable Development Goals

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