India-centric microfinance equity fund to get $60m from PGGM

MicrofinanceFocus, July 17, 2009: Dutch pension fund PGGM will invest 43 million euros ($60m) over the next two years in a global microfinance equity fund run by Grassroots Capital, mainly meant for Indian microfinance sector, says a report by London-based Responsible-investor.
PGGM has made one of the world’s largest institutional commitments to microfinance in developing countries, with 200 million euros over the next two to three years. This is second allocation of the fund by PGGM. In March 2008, it had allocated 27 million euros to the Dexia Microcredit Fund operated by Swiss fund manager BlueOrchard Finance. With this, the fund will have 130 million euros meant for the microfinance sector.
Alex van der Velden, head of investment startegies of PGGM, said: “Grassroots already had a promising track record, and particular strength in India which we consider to be one of the most promising growth areas for microfinance.” Grassroots has presence in equity markets of about 24 countries, with investments made in nearly 50 microfinance institutions.
PGGM is the pension administrator and asset manager of Pensioenfonds Zorg en Welzijn, the Dutch pension fund for the welfare sector and AENA, the professional pension fund for independent artists. Founded in 1969, the Netherlands-based PGGM operates as a subsidiary of Japan Asia Investment Co. Ltd.

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