Presentation is loading. Please wait.

Presentation is loading. Please wait.

Infrastructure for Development Investing in Financial Institutions.

Similar presentations

Presentation on theme: "Infrastructure for Development Investing in Financial Institutions."— Presentation transcript:

1 Infrastructure for Development Investing in Financial Institutions

2 Rationale for Financial Institutions Investments Private sector development is dependent on access to capital. Borrowing and saving money reduces vulnerability of households. Large number of enterprises and individuals lack access to basic financial services, such as banks accounts, insurance and credit. Development Rationale Financial institutions need capital to develop products and increase market outreach. Banks are dependent on debt in order to extend loans to their customers, especially longer tenure local currency debt. Capital investments are also necessary to build infrastructure to expand service offering to unbanked. Investment Needs

3 Financial Institutions Strategy High financial returns and strong development effects. Focus on SME’s and unbanked. Mainly local owned with promising growth potential. Profile Banks. Micro finance companies. Non- deposit taking and other financial institutions. Institutions Equity Debt (USD and local currency) Mezzanine Instruments

4 Existing Financial Institutions Portfolio NOK 2,4 billion committed

5 Development Effects of Financial Institutions Portfolio Jobs (Direct): 130 183 Female Jobs: 38% Taxes: NOK 1,942,219,630 Customers: 52.9 millions

6 Highlights 2013 - 2014 SUMMARY Committed NOK 627 million to 12 investments HIGHLIGHTS Investment company targeting African financial institutions with equity investments. Main rationale to mobilize private Norwegian capital for investment in the Financial institution sector in Africa. Investors:Norfund,KLP, Perestroika AS; Skagen Kon- Tiki Verdipapirfond ; Solbakken AS. First close USD 136.5 million. First investment in Myanmar. PD provides crop loans to small and rural farmers. The organization boasts the most extensive rural network, covering 80% of rural population. Loan will provide more access to finance to rural farmers. Convert from a NGO to a commercial company. NORFINANCE (“NF”)PROXIMITY DESIGNS

7 Key Next Steps Invest available capital and possibly raise additional capital. Fully Invest NorFinance Scale up Norwegian Micro Finance Initiative (”NMI”) and possibly obtain more Nordic investors. Scale up NMI Invest in scalable banking models with innovative distribution channels like agency business models and mobile money transfers. Examples of Brac Bank, Bangladesh and Equity Bank, East Africa. Scalable banking models Invest in innovative business models outside traditional banking sector addressing needs of SME’s and unbanked Innovative business models

8  Was founded in May 1964 as a Development Finance Bank and converted to a commercial bank in 2000 and listed on the Uganda Security Exchange on 2004.  Is Uganda’s 5 th largest bank, with 34 branches countrywide.  We are an investor since 2004 and have increased our shareholding in 2012 from 10% to 27.5%. This investment has now been transferred to NorFinance.  We have also provided debt capital  The bank has transformed several private enterprises in Uganda through provision of funding for projects using products like Term Loans, Home Loans, Commercial Mortgages and Leasing.  In 2013 we initiated a strategic alignment of shareholders with the introduction of Rabobank as a new shareholder. Company BackgroundShareholding Structure Performance – Total Assets 27.5% 15% Bank: DFCU Limited Uganda Unit: Shs million 30% Other

9  Started as an NGO food project in 1994 and a Microfinance operator in 2001.  Norfund has been invested since 2007.  Is among one of the top 4 MFIs in Cambodia and is moving towards being the leading, sustainable microfinance provider, helping clients to succeed in their businesses.  Employs 1872 people, of which 541 are female.  We have provided equity funding, loans in both local currency and in US dollar and an emergency liquidity credit line, when there was political turmoil.  Strategic plan initiated to transform to a fully fledged SME/ Micro finance banking group. Company BackgroundShareholding Structure Performance - Loan portfolio Strong shareholder group who have been consistently supportive to HKL’s growth. Local SH 17.49% 19.73% 19.75% 19.87% 23.16% Unit: USD million As of June 2014, loan portfolio stood at USD 194 million with PAR>30 of only 0,04%. Microfinance : Hattha Kaksekar Limited, Cambodia (HKL)

Download ppt "Infrastructure for Development Investing in Financial Institutions."

Similar presentations

Ads by Google