CHF International creates commercially oriented global microfinance subsidiaries

Microfinance Focus, April 22, 2010: CHF International, the Silver Spring-MD based international development and humanitarian assistance organization, announces to create a private holding company, CHF Finance Group, for its most commercially oriented global microfinance subsidiaries.

CHF Finance Group will be seeded initially with four of CHF International’s microfinance subsidiaries, including Express Finance S.A. in Romania and Ameen S.A.L. in Lebanon at the outset, followed by the Middle East Micro Credit Company (MEMCC) in Jordan and Lider MicroCredit Company in Bosnia pending their registration under new local laws that will enable them to qualify for membership.

On Monday, April 12, CHF International and the International Finance Corporation (IFC), a member of the World Bank Group, signed a subscription agreement for IFC to invest in a 19.9% stake, making the IFC the first minority investor in the CHF holding company.

Over the next five years, CHF Finance Group aims to raise over $100 million in a combination of debt, equity and technical assistance grants to grow its existing operations, build capacity of local staff, and provide sufficient seed capital to start up operations in new areas. The proceeds from the sale of shares to IFC, and to other minority investors in the future, will help the Group accelerate the growth of its subsidiaries’ lending operations, increase outreach, expand product lines and generate innovative solutions to capital access challenges in the developing world.

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