news - FMO supports professionalization of the Philippine microfinance market

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FMO supports professionalization of the Philippine microfinance market

January 31, 2017

FMO will provide a senior unsecured US$3 million loan in local currency to MicroVentures Philippines Financing Company Inc (One Puhunan).

The structure will be a synthetic local currency loan funded from the MASSIF fund, which is managed by FMO on behalf of the Dutch government, with the aim to support the company’s growth plan.

The Philippine microfinance market is mainly dominated by large non-profit groups and foundations that tend to be inefficient. With this transaction, FMO will help professionalizing the market by supporting the growth and the strengthening of One Puhunan. The company aims at servicing micro-entrepreneurs in an efficient and commercially sustainable way and it has ambitious plans to scale up its impact and become one of the leading MFIs in the Philippines.

FMO is highly additional as One Puhunan is unable to have access to local funding due to its short track record. Founded in March 2014, Microventures Philippines Financing Company Inc. (One Puhunan) is a greenfield MFI providing financial services to small businesses and low income individuals. It is a 100% subsidiary of CreditAccess Asia, a group (based in Amsterdam) of institutions that provides professional financial services to over 1 million local micro entrepreneurs in India, Indonesia and the Philippines.

“One Puhunan will help to professionalize the local market whilst FMO will support the growth and the strengthening of a new microfinance player – commercially and professionally run with high standards of transparency and efficiency - in a complex and fragmented market.” said Marnix Monsfort, Manager at FMO.

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