Global Commercial Microfinance Consortium I
Last updated 13 May 2020, by Impactyield.
The Global Commercial Microfinance Consortium was a pioneering investment vehicle launched in 2005 that channeled $80.6 million in capital from institutional investors, individuals, foundations and development agencies to 41 microfinance institutions located in 24 countries. One of the earliest microfinance collateralized debt obligations (CDOs), it catered to a variety of investor risk-appetites and represented a milestone in the demonstration of microfinance as an asset class; 13 institutional investors participated in the fund. The Consortium was also historic in that it was one of the first investment vehicles to provide flexible products to microfinance institutions in local currency, at fixed or floating rates.
From 2005-2012, the Consortium provided $89 million in senior debt funding to 41 MFIs in 24 countries. The Consortium utilized FX hedges, Letters of Credit and Guarantees from Deutsche Bank to deliver local currency solutions to many of its borrowers.
Despite maturing in 2010, in the midst of a global financial crisis, the Consortium provided returns to all investors classes ranging from 3.5%-7.0%; no principal loss occurred for any investors. A full profile of the financial structure and actual returns is detailed in the overview attached above.
Financing was made available through a private placement to a consortium of investors including, institutional investors, foundations, private individual social investors and development agencies. DFID provided a first loss equity donation and USAID provided a guarantee for the senior notes, equal to 24% of the Note’s value.
of track record
the year funded
Headquarters location: United States of America
Other funds managed by this asset manager: Global Commercial Microfinance Consortium IIEye Fund I, LLCFINCA Microfinance Fund B.V.First German Fund for Microfinance
Key performance indicators
Asset manager: Deutsche Bank
Product track record: Fund has 18 years of track record
Target IRR: n.a.
Committed Capital: n.a.
Target return category: Risk-adjusted market-rate of return
Fund domicile: Cayman Islands
Product status: Completed
Inception year: 2005
Vintage year: 2005
Target region: Emerging countries
Target close date: n.a.
Product term: 5 years
Assets under management: 80,600,000 USD (US Dollar)
Investment size: Min: 0; Max: 0; Avg: 0
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 41
Fund investments to date exited or repaid: 41
Management fee: 1.3%
Carried interest: n.a.
Hurdle rate: n.a.
GIIN Investors' Council Investment: Yes
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: Development Finance Institution (DFI), Other Institutional Investors
Phone number: 212.250.0549
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The Fund not only incorporates extensive financial analysis and enterprise level due diligence, but also includes analysis of the MFIs’ adherence to their social mission and focus on customers.