Teak Tree Investments
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Teak Tree Investments (TTI) is a newly established holding and operating company that will take minority equity positions into 4-8 Filipino provincial (SME/agricultural) banks and build them up into ‘Regional Champions’ by providing general services and technical assistance. TTI will provide the banks with the capacity building services tailored to each investee bank through local banking experts, a panel of international expert banking advisors and the full-time input of TTI’s principals.
What is our funding objective?
Investing in TTI will provide quite a unique opportunity to enter the financial sector of the rural Philippines, one of the largest and most attractive rural markets in the region. The fragmented nature of this (micro) finance sector has prevented international investors from directly investing in microfinance institutions (MFIs) in the Philippines. FMO invested US$7 million in TTI, thereby expanding outreach to the unbanked population through high-quality financial services, multiplying impact by working with (initially) three institutions, contributing to the strengthening and consolidation of the sector and benefiting from significant learning opportunities.
Why do we fund this investment?
TTI's approach is closely aligned with FMO’s approach to strengthening (in growth and skills) rural agricultural banks in the Philippines and thereby increasing access to finance for many individuals, small enterprises and farming communities. TTI’s concept is tailored to improve financial inclusion and its activities will have an immensely positive effect on the lives of the low-income population in the Philippines, both in terms of outreach as well as the quality of the services offered. The investment has been made through the MASSIF fund, as TTI is a start-up and the target investees are small, mainly serving rural SMEs and still having a high capacity development need in order to reach a higher standard.
- Region
- Asia
- Country
- Philippines
- Sector
- Financial Institutions
- Effective date
- 2/22/2013
- Total FMO financing
- USD 7.00 MLN
- Funding
- MASSIF
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B