The Asian Development Bank (ADB) signed a €30 million equity investment agreement today with CreditAccess Asia N.V. (CAA), a holding company headquartered in Amsterdam, that operates microfinance institutions (MFIs) across Asia, currently serving approximately 1.8 million customers, 99.8% of whom are women.
The investment will provide CAA with growth capital and support for its pan-Asia microfinance operations, increasing financial inclusion across the region. A $500,000 technical assistance grant is also expected to support CAA build in-house capacity to promote further expansion of its operations.
The investment will allow ADB — through a microfinance holding company approach — to support CAA’s operational expansion in the region, and contribute to better financial inclusion across markets where access to finance is limited. CAA, as the holding company, will use ADB’s assistance to capitalize and expand operations of its subsidiary MFIs, the largest of which is Grameen Koota in India. CAA also currently has operations in Indonesia, the Philippines, and Viet Nam. The project is expected to benefit at least 3.5 million women borrowers directly by 2021.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB is celebrating 50 years of development partnership in the region. It is owned by 67 members—48 from the region.
Jones Day has advised CreditAccess Asia on the deal with a team led by Bastiaan Kout.
Involved fees earner: Bastiaan Kout – Jones Day;
Law Firms: Jones Day;
Clients: CreditAccess Asia N.V.;