Morgan Stanley, BlueOrchard Bond Routes International Investments to Microfinance
By M. Sapp
Bond to Benefit Low-income Start-up Enterprises in Developing Countries
Originally published: June 13, 2006 Source: Women eNews, USA
"What was once the realm of donor dollars and tiny loans to extremely poor women in Bangladesh is developing into a multimillion dollar market for international investors.
In March, New York-based investment banking giant Morgan Stanley offered a $106 million bond on behalf of 65 microfinancing institutions, or MFIs, and the bond sold immediately. Banks, insurance companies and investment funds from the United States and Europe snapped it up. Dutch development bank, the Netherlands Development Finance Company (FMO), bought 30 percent.
The deal follows two other bonds worth a total of $57 million in 2004 that were offered only in a limited number of markets and currencies. Morgan Stanley's deal breaks new ground by turning international investors in the United States and Europe into microfinance creditors who see new opportunities to profit by helping individuals start up businesses in developing nations.
To read the complete article, please click here."
Summary taken from http://www.microfinancegateway.org/content/article/detail/33672
Bond to Benefit Low-income Start-up Enterprises in Developing Countries
Originally published: June 13, 2006 Source: Women eNews, USA
"What was once the realm of donor dollars and tiny loans to extremely poor women in Bangladesh is developing into a multimillion dollar market for international investors.
In March, New York-based investment banking giant Morgan Stanley offered a $106 million bond on behalf of 65 microfinancing institutions, or MFIs, and the bond sold immediately. Banks, insurance companies and investment funds from the United States and Europe snapped it up. Dutch development bank, the Netherlands Development Finance Company (FMO), bought 30 percent.
The deal follows two other bonds worth a total of $57 million in 2004 that were offered only in a limited number of markets and currencies. Morgan Stanley's deal breaks new ground by turning international investors in the United States and Europe into microfinance creditors who see new opportunities to profit by helping individuals start up businesses in developing nations.
To read the complete article, please click here."
Summary taken from http://www.microfinancegateway.org/content/article/detail/33672
posted by Katalysis at 2:55 PM
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