FINCA Malawi and KfW Announce USD 3.4 Million Subordinated Loan Facility
Loan Facility Will Fund FINCA Malawi's Digital Transformation and On-lending to Small Businesses
BLANTYRE, Malawi, March 19, 2018 /PRNewswire/ -- FINCA Malawi, the microfinance operations of FINCA Impact Finance in Malawi, and KfW, the German state-owned development bank, signed a USD 3.4 million long-term subordinated debt facility with a loan tenor of 8 years. FINCA Malawi intends to use the facility to digitize its processes and broaden its financial products and services, specifically by boosting financing of micro, small and medium-sized enterprises (MSMEs).
FINCA Malawi is a licensed deposit-taking institution that currently serves more than 50,000 customers across its 23 branches and expanding agent network. It is investing in digital technologies to support delivery of its products and services. It recently introduced a mobile banking platform to improve access across the country, particularly in rural areas. These initiatives create convenience and speed for our customers.
According to FINCA Malawi CEO Christopher Kizza: "The strategic cooperation and synergies between FINCA and KfW will support FINCA Malawi's efforts to digitalize its business, support our capital structure and grow our portfolio. FINCA's customers will benefit with improved access to an array of products and services that will translate to increased productivity, competitiveness and employment generation."
According to Katharina Collin and Patrick Schreiber, Senior Project Managers for KfW: "We share FINCA's values and strongly believe in the virtue of microfinance to alleviate poverty, create jobs and improve living conditions."
KfW and FINCA Impact Finance are both dedicated to achieving positive social impacts while employing commercial principles that require sustainable financial results. This facility marks a new milestone in the partnership between the two institutions, with KfW being a key minority shareholder of the FINCA Impact Finance network.
FINCA Impact Finance is furthering its strategy of diversifying its funding base to promote financial inclusion and has attracted worldwide attention and interest from the investment community. It has recently issued bond offerings in its subsidiaries in Pakistan, Nicaragua and Armenia, allowing greater flexibility to manage foreign exchange and geographic risks.
About FINCA Impact Finance
FINCA Impact Finance is a global network of 20 microfinance institutions and banks that provides socially responsible financial services and enables low-income individuals and communities to invest in the future. For more information, http://www.FINCAImpact.com or follow us on Twitter @FINCAImpact.
About KfW
KfW is the promotional bank of the Federal Republic of Germany, established in 1948, and aims for sustainable improvement of the economic, social and ecological conditions of people's lives.
SOURCE FINCA Impact Finance
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