Swiss Investment Fund
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Pact Global Microfinance Fund

PACT GLOBAL MICROFINANCE FUND (PGMF) IS THE LARGEST MICROFINANCE INSTITUTION IN MYANMAR, WITH A PORTFOLIO OF CLOSE TO USD 368 MILLION, AND SERVING MORE THAN ONE MILLION CLIENTS, PRIMARILY FEMALE MICRO AND SMALL ENTREPRENEURS, VIA 268 BRANCHES. THE AVERAGE LOAN SIZE IS EXPECTED TO INCREASE BUT REMAINS AT USD 300. PGMF IS FULLY OWNED BY PACT, AN INTERNATIONAL NONPROFIT DEVELOPMENT ORGANISATION. PGMF HAS A STRONG SOCIAL MISSION TO HELP ALLEVIATE POVERTY IN MYANMAR AND INCREASE FINANCIAL INCLUSION. THIS IS DEMONSTRATED BY ITS SUCCESSFUL GROUP LENDING APPROACH, ITS OUTREACH TO RURAL AREAS (85%), THE PERCENTAGE OF FEMALE BORROWERS (98%), AND ITS WELL-DEVELOPED TRAINING PROGRAMMES FOR CLIENTS. EACH CLIENT ATTENDS NON-FORMAL BUSINESS EDUCATION CLASSES WHERE THEY LEARN HOW TO SAVE AND USE THEIR LOANS TO DEVELOP AND GROW THEIR INCOME-GENERATING ACTIVITIES.

Pact Global Microfinance Fund

PACT GLOBAL MICROFINANCE FUND (PGMF) IS THE LARGEST MICROFINANCE INSTITUTION IN MYANMAR, WITH A PORTFOLIO OF CLOSE TO USD 368 MILLION, AND SERVING MORE THAN ONE MILLION CLIENTS, PRIMARILY FEMALE MICRO AND SMALL ENTREPRENEURS, VIA 268 BRANCHES. THE AVERAGE LOAN SIZE IS EXPECTED TO INCREASE BUT REMAINS AT USD 300. PGMF IS FULLY OWNED BY PACT, AN INTERNATIONAL NONPROFIT DEVELOPMENT ORGANISATION. PGMF HAS A STRONG SOCIAL MISSION TO HELP ALLEVIATE POVERTY IN MYANMAR AND INCREASE FINANCIAL INCLUSION. THIS IS DEMONSTRATED BY ITS SUCCESSFUL GROUP LENDING APPROACH, ITS OUTREACH TO RURAL AREAS (85%), THE PERCENTAGE OF FEMALE BORROWERS (98%), AND ITS WELL-DEVELOPED TRAINING PROGRAMMES FOR CLIENTS. EACH CLIENT ATTENDS NON-FORMAL BUSINESS EDUCATION CLASSES WHERE THEY LEARN HOW TO SAVE AND USE THEIR LOANS TO DEVELOP AND GROW THEIR INCOME-GENERATING ACTIVITIES.

About the fund

In Myanmar, nearly a third of the population is completely excluded from formal financial services according to the World Bank. SIFEM’s long-term loan of USD 8 million in local currency (Kyat/MMK) is promoting financial inclusion by providing access to and increasing usage of financial services, thereby reducing inequality in the country (SDG 10). This investment is also empowering women and supporting gender equality (SDG 5) by financing women-led businesses and by increasing female decision-making power in the household and at the community level. 

This senior loan has been provided in local currency (Kyat/MMK) thanks to a hedging solution which will help PGMF reduce foreign currency risks on its balance sheet and provide better solutions to its clients.
 

Reference code
2020-03
Status
Active
Date of commmitment
September 2020
Date of exit
-
SIFEM commitment
USD
8,000,000
Asset class
Private Debt
Investment strategy
Investment through Fund