Standard Chartered has provided its first Philippine microfinance loan, worth PHP75mn (equivalent to US$1.5mn) to Card Bank, one of the country’s largest microfinance institutions (MFIs).
The loan will be used to bolster Card Bank’s portfolio and branch expansion plans for 2010. This will benefit over 15,000 farmers, rural industries and small enterprises in the Philippines. This milestone transaction is the first MFI loan by Standard Chartered into South East Asia and sees the bank’s microfinance footprint expand to 22 countries from 21.
The loan is supported by a US$500,000 guarantee from Women’s World Banking, the largest global network of leading MFIs and banks dedicated to women’s empowerment. The loan guarantee is part of Women World Banking’s strategy to promote the responsible entry of commercial capital into the microfinance sector to spur development of the industry and improve the access to financial services.
Standard Chartered’s global head of microfinance, Prashant Thakker, adds: “Our commitment to the microfinance sector is clear. We continue to provide financial services to the sector because of its impact on economic growth. This loan is important to us as it is Standard Chartered’s first microfinance loan in the Philippines and in South East Asia. There is a vast opportunity in the region to support microfinance institutions and help them increase outreach and impact.”
In 2006 Standard Chartered committed to provide development organisations and fund managers with US$500mn of credit and financial instruments as well as technical assistance to finance MFIs in Africa and Asia by 2011. In December 2009 the bank exceeded the target, providing US$540mn to microfinance industries in Africa and Asia, benefiting over 4 million people who are currently excluded from participation in the financial sector.
Card ranks among the top 20 MFIs in the world, focusing its efforts on providing banking services for landless rural workers and offering non-collateralised loans to projects that are unfunded by the traditional banking sector.
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