Investment areas
Portfolio in depth
Portfolio Africa: Region: Mozambique Banco Terra is a bank that targets small- and medium-sized enterprises with a special focus on the agricultural sector. The total assets of the bank constitute NOK 230 million. Norfund has invested NOK 20 million and has an ownership share of 20 per cent. The remaining owners are Rabo Financial Institutions Development BV (Rabobank), KfW and Sociadade De Investimentos (GAPI). Norfund regards the start-up of Banco Terra as a key contribution to making financial services available to a greater number of enterprises and individuals in Mozambique. Region: East Africa Brac is a large micro-financing institution in Bangladesh that has expanded to Africa by establishing organizations in Tanzania, Uganda and Southern Sudan. Norfund contributes to financing the expansion through Brac Africa Microfinance Ltd., which is a loan fund. Norfund has invested approximately NOK 30 million. With this investment, Norfund wishes to help BRAC, one of the world’s largest micro-financing organizations, in its efforts to grow in Africa. Over a short period BRAC has succeeded in establishing the organization in new countries, and with its focus on areas beyond the cities, it will be able to contribute to poverty alleviation on a large scale. Region: Tanzania Exim Bank is a Tanzanian bank specializing in loans to the SME sector. The organization’s total assets amount to NOK 2.45 billion and Norfund has invested NOK 46 million. Exim Bank (Tanzania) Ltd. was Norfund’s first investment in a financial institution in Tanzania. Through its investment Norfund has contributed to Exim Bank’s strong growth in lending over the last three years. Exim Bank delivers strong financial results. Region: South Africa Capitec Bank is one of the largest banks in South Africa and targets segments of the population that traditionally have had no access to financial services. The total assets of the institution amount to NOK five billion. Norfund has invested NOK 121 million in the form of loans. The largest owners are PSG Group Ltd and Coral Group Ltd. Norfund’s investment is intended as a support to the segments of the population that have no access to basic financial services. Region: Uganda DFCU is a commercial bank that offers financial services in the form of loans to enterprises and individuals in Uganda. The institution has total assets of NOK 1.9 billion. Norfund has invested NOK 17 million and has an ownership share of ten per cent. Britain’s CDC is the largest owner of DFCU. DFCU has been a good partner to Norfund for several years and can document good results among a growing portfolio of customers in the SME segment. Region: Kenya Equity Bank targets customers who otherwise would have no access to financial services. The institution’s total assets amounted to NOK 7.4 billion as of year-end 2009. Norfund obtained a minor ownership share in the bank as part of the settlement following Equity Bank’s takeover of Uganda Microfinance Ltd. As a result of the expansion to the neighbouring countries, Equity Bank will extend its operations, which have demonstrated that it is indeed possible to operate a sustainable bank based on the idea of serving society’s low-income groups. An international consortium consisting of Norfund, Dutch Development Finance Organization FMO and Africinvest, an investment fund, will after the transaction hold a 22,3% stake in Family Bank. The objectives of the international shareholders will be to further grow and professionalize the bank. Family Bank focuses on the lower end of the market including junior salaried workers, small scale farmers and Micro, Small and Medium sized enterprises (MSMEs). Norfund’s investment in Family Bank will improve access to finance for the low income segment in Kenya, a country where 71% of the population does not have a bank account. It will also channel more funding to small and medium sized businesses that again generate employment and economic growth.
Region: South Africa Real People is a financial institution that offers credit to small enterprises and individuals who otherwise have limited access to financial services. The institution’s total assets amount to NOK 1.8 billion. Norfund has invested NOK 77 million in the form of a line of credit and has an ownership share of 8.7 per cent. The largest owners of the institution are Old Mutual and Peregrino Group. Norfund’s contribution will provide a platform to Real People for providing financial services to low-income groups. Region: Mozambique Socremo is a Mozambican financial institution that offers micro-financing loans to SMEs in the country. The institution’s total assets amount to NOK 173 million. Norfund has invested NOK 12 million for an ownership share of 18.4 per cent. Norfund invested jointly with Nordic Microcap and Africap. Socremo has a high rate of deposits and good prospects for further growth. Norfund wishes to contribute to the further growth of the institution and to give a growing number of poor people access to basic financial services. Region: Kenya, Rwanda, Uganda and Sudan MAL is a commercial micro-financing organization based in Kenya. In addition, MAL has established operations in Uganda, Rwanda and Southern Sudan, and holds a minor ownership share in a micro-financing institution in Tanzania. The institution’s total assets amount to KES 507 million. Norfund has invested USD 250 000 and has an ownership share of 15.3 per cent. Aureos East Africa owns an additional 15.3 per cent. In addition, AEA also manages Norfund’s ownership share as well as the 22 per cent share held by the Acacia fund, and thereby has control of the company. Norfund wishes to reach out to a higher number of poor borrowers by developing Micro Africa into a larger and more professionally operated MFI in the region. Region: Regionally in Africa AfriCap Microfinance Investment Ltd is a fund that offers equity capital and expertise to African micro-financing institutions. The institution’s total assets amount to NOK 289 million and Norfund has invested NOK 17 million. The largest owners are FMO, EIB and Nordic Microcap. AfriCap is a demonstration model for private financing of micro-financing in Africa and is the first private equity fund in the region within this sector.
Region: Cambodia BRAC offers loans to the micro-financing market, which targets the poorest segment of society, and its customers are mainly women. The institution’s total assets amount to BDT 49 879 million, equal to NOK 4.1 billion. Norfund has provided a loan in BDT equal to NOK 54 million. When Norfund engaged in this institution it was the first example of international investors joining together to provide an unsecured, long-term loan in local currency to a micro-financing institution in Bangladesh. Region: Bangladesh BRAC Bank has total assets of BDT 95 billion (USD 1,3 billion) and is considered the market leader within SME financing in Bangladesh. Its largest owners are BRAC, one of the world’s largest non-governmental organizations, IFC of the World Bank group and ShoreCap International. Norfund participates in a 3 billion BDT subordinated listed convertible bond issue. Norfund’s share is the local currency equivalent of USD 7 million. Norfund’s investment in BRAC Bank will improve access to finance for small and medium sized businesses that generate employment and economic growth in one of the world’s poorest countries. In addition the listing of the bonds contributes to the deepening of the country’s capital market. This will be the first listed bonds with international investors among the subscribers. Region: Vietnam Sacombank is a leading commercial SME bank in Vietnam. Founded in 1991, Sacombank has been a pioneer in SME financing in the country. Norfund has participated in the first closing of a USD 100 million subordinated loan syndication. Norfund’s share is USD 25 million. Norfund’s investment will strengthen Sacombank’s capital base and allow for more access to finance for SMEs in Vietnam. Norfund has also signed a capacity development facility which will assist the bank in further improving its corporate governance and implementing a social and environmental risk management system.
Region: Vietnam Sacombank Leasing (SBL) is a fast growing locally-owned leasing company in Vietnam. SBL is a wholly-owned subsidiary of Sacombank, a leading commercial SME bank in Vietnam. Norfund has provided a USD 5 million loan to support SBL’s expanding business. Norfund’s investment will help to promote greater financial deepening in the country and to alleviate the severe needs for funding for SMEs. Leasing is an important financing tool for SMEs and a nascent industry in Vietnam.
Region: Cambodia Sathapana is the third largest micro-financing institution in Cambodia. The institution has total assets of NOK 317 million. Norfund has invested NOK 29 million in the form of loans. The largest owners are Triodos, DWM and FMO. With its investment, Norfund wishes to contribute to making basic financial services available to the poor. Område: Cambodia Samic is a large micro-financing institution in Cambodia. The institution has total assets of NOK 25 million. Norfund has invested NOK three million in the form of loans. The largest owners are CHC, NGO and CMI. With its investment, Norfund wishes to contribute to making basic financial services available to the poor. Område: Cambodia Hattha Kaksekar Limited (HKL) is the fourth largest micro-financing organization in Cambodia. More than half of its clients are women entrepreneurs. As of Sept. 2010, the institution has total assets of NOK 250 million. Norfund has invested NOK 16,5 million, including both loans and equity. Norfund has an ownership share of 14 per cent and is represented on the Board. With this investment, Norfund wishes to contribute to making basic financial services available to the poor.
Corporacion Interamericana para el Finaciamiento de Infraestructura (CIFI) Region: Latin America and the Caribbean CIFI is a regional financial institution for long-term funding of medium-sized infrastructure projects in Latin America and the Caribbean. The institution has total assets of NOK 1.3 billion. Norfund has invested NOK 29 million in equity capital and NOK 58 million in loans and has an ownership share of 9.3 per cent. The largest owners are Caja Madrid and IFC. With its investment, Norfund wishes to contribute to further developing infrastructure projects in Latin America, because this produces favourable development effects.
Locfund
Region: Latin America Locfund is a micro-financing fund that offers loans in local currency to micro-financing institutions in Latin America. The institution has total assets of NOK 180 million. The fund was established in 2007 as a result of high demand for local-currency products. Norfund has invested NOK nine million in equity capital and NOK nine million in loans and has an ownership share of ten percent. The largest owners are FMO and IMF. With its investment, Norfund wishes to contribute to financing of micro-financing institutions in local currencies, and thereby strengthening their risk management. Region: Latin America LAAD is a financial institution that provides loans and advisory services to medium-sized agricultural enterprises. The institution has total assets of NOK 404 million. Norfund has invested NOK 87 million in loans. The largest owners are Bank of America, Borden, Cargill, Deere & Co, DEG, Dole Food Company, Gerber, Goodyear Tire and Rubber, JP Morgan, Monsanto, Rabobank and Unilever. With its investment, Norfund wishes to contribute to financing of infrastructure projects in developing countries in Latin America.
Region: Regionally/Globally TCX offers interest and currency hedging products to investors in emerging markets. TCX offers products that are not generally available in international finance markets, such as interest and currency hedging of currencies in a number of developing countries. Norfund has invested NOK 55 million in TCX and owns 2.4 per cent of the enterprise. Other investors include FMO, IADB, KfW and AFD/Proparco. Norfund wishes to support long-term financing in local currencies. Region: Latin America, Africa, Asia
Region: Latin America, Africa, Asia
Region: South Asia and sub-Saharan Africa
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