FINCA Impact Finance’s Divestment of Microfinance Operations in Russia

Orrick advised U.S. impact finance company FINCA Impact Finance in the divestiture of its microfinance operations in Russia – the second largest in the country – to Luxembourg-based Mikro Kapital. The transaction involved restructuring third-party financing from the European Bank for Reconstruction and Development, the MEF and the responsAbility Fund.

As a result, FINCA Impact Finance was able to hand over the legacy it has built in Russia over the past 18 years to a financial services provider that shares FINCA Impact Finance’s commitment to expanding access to responsible financial services by serving microfinance segment. Mikro Kapital has become one of the leading microcredit providers in Russia and the CIS.

Orrick has assisted FINCA Impact Finance on a number of transactions in Russia and the CIS region over the last three years, including the restructuring of FINCA Impact Finance’s operations in Armenia, obtaining financing in two Central Asian CIS countries, the divestiture of FINCA Impact Finance’s loan portfolio in Russia, and others.

The Orrick team on those matters were led by Mikhail Usubyan (Picture) and included Larisa Afanasyeva and former associate Maria Kosova and Konstantin Kroll.

Involved fees earner: Mikhail Usubyan – Orrick; Konstantin Kroll – Orrick; Larisa Afanasyeva – Orrick;

Law Firms: Orrick;

Clients: FINCA Impact Finance;