Calvert Impact Capital provided a $15 million revolving loan facility with a five-year tenor to FINCA Impact Finance, a network of 20 microfinance institutions and banks.
This facility provides FINCA Impact Finance with a mix of credit-line efficiency and long-term liquidity for on-lending to FINCA Impact Finance subsidiaries to support microentrepreneurs and small businesses. A portion of the funds can be used for working capital or long-term investments, such as advancing network-wide digital transformation.
“We appreciate the continued confidence and support of our many lenders, like Calvert Impact Capital, who recognize the strength of the FIF network and our track record of social and financial performance,” Roman Hingorani, CFO of FINCA Impact Finance, said. “With this facility, FIF will maintain significant funding capacity, putting us in a strong position during a challenging time. Calvert Impact Capital has supported the FIF network, through direct lending to FINCA affiliates or indirectly through their partnerships with other microfinance investment vehicles, for many years and we look forward to many more.”
FINCA Impact Finance ended 2019 with a gross loan portfolio of $854 million and 2.6 million clients, a 13% increase in clients compared with 2018.
“Calvert Impact Capital has been a long-time investor in the microfinance sector and we’re proud to continue supporting financial inclusion by offering an innovative product to FIF,” Songbae Lee, a director of investments at Calvert Impact Capital, said. “FIF’s dedication to serving vulnerable populations, extensive community-based network and nearly 40 years of experience delivering solutions to financially-excluded populations make them an ideal partner. Their work is needed now more than ever.”
Calvert Impact Capital raises capital from individual and institutional investors to finance intermediaries and funds that are investing in communities left out of traditional capital markets.
