- Generated $176 million in local currency financing provided to 21 MFIs globally, which in turn served over 1.1 million loans to micro-entrepreneurs. Since inception in 2005, all of the loans have been repaid on schedule and without any restructuring of the loan or calls on the guarantees. The Growth Guarantee program was upgraded in 2008 as an ever-green facility which currently totals about $28 million in available guarantees.
- In 2010, Grameen Foundation issued $6.1 million in guarantees to leverage over $16.2 million in local currency loans for four microfinance institutions in Bolivia, India, and Peru -- in turn creating over 80,000 new microloans for the poor.
From 2011 Progress Report:
When we launched the Growth Guarantees program five years ago, the lionshare of the financing available to microfinance institutions (MFIs) was in hard currency. Our goal was to open up local capital markets and increase the availability of local currency financing for MFIs. Since then we have seen considerable movement, with the proportion of total financing going to MFIs in hard currency decreasing from 86% in 2006 to 69% today.
We believe Grameen Foundation's efforts, including targeted outreach to local banking officials and size and nature of the transactions we facilitated, helped to influence this shift. The Growth Guarantees program is ongoing and we will continue to use this vehicle to build even more mutually beneficial relationships between MFIs and their local financial institutions.
- A privately placed five-year fixed rate note issue for Center for Agricultural and Rural Development, Inc. (CARD) in Philippines in August 2009. The total financing generated was $10.5 million backed by $5 million in Growth Guarantees. This financing will directly provide microloans to over 123,000 poor Filipinos. CARD has about 400,000 clients currently and plans to reach over one million clients by 2013. This is the first time a MFI has issued notes to investors in Southeast and East Asia and opens the market to introduce more local investors to microfinance.
- Schwab Charitable Foundation became the first donor advised fund to participate in the Growth Guarantees program (May 2009). Schwab aggregates guarantees from its donor advised funds with amounts as low as $5,000. This has democratized participation in Growth Guarantees which previously was limited to a minimum participation to $1 million.
- Grameen Foundation signed its largest guarantee agreement with USAID (September 2009) for $16.25 million which could generate up to $162.5 million in local currency financing. For the first time, USAID delegated to Grameen Foundation the selection, approval, and monitoring of all transaction.
- As part of its commitment to educating MFIs about financing options, Grameen Foundation conducted investment readiness trainings for 25 MFIs attending Grameen Foundation's regional forums in Ghana and Mexico. Given the additional pressures being placed on MFIs by the global financial crisis, GFUSA also co-hosted a workshop on alternative financing strategies for senior executives at ten MFIs in India.
- Grameeen Foundation also made its largest loan guarantee placement in sub-Saharan Africa which generated $5.3 million in financing for Amhara Credit and Savings Institution (ACSI) of Ethiopia. ACSI is that country's largest MFI and is also one of the largest in sub-Saharan Africa. It is one of the few MFIs operating in the Amhara district, Ethiopia's poorest region, where it provides loans, savings, microinsurance, and other services in largely rural communities. It currently serves more than 800,000 clients (borrowers and savers) and, by 2012, intends to reach more than 1.9 million borrowers and savers combined.
- From January to March 2008, GF closed the following transactions: the first Growth Guarantee (GG) in Ethiopia (a landmark transaction in Africa) that leveraged $5.3 million in local currency with $2.5 million from GF (2.1 times leverage); mobilized $2.2 million for MBK Ventura, a high-performing poverty-focused Grameen replicator MFI in Indonesia, leveraging two times the $1.1 million GG; and finalized the third guarantee for Pro Mujer Bolivia achieving a new record four times leverage with a $250,000 GG supporting a $1 million loan.
- The Grameen Foundation (GF) has placed a total of $25.2 million in Growth Guarantees since program launch in November 2005, leveraging more than $130 million in local currency financing for MFIs.
- GF has made an estimated 700,000 microloans available to micro-entrepreneurs through the Growth Guarantees.
- The third Growth Guarantees Investment Committee meeting was held, during which guarantees totaling $5 million were approved for MFIs in Nicaragua, Egypt, and Morocco. The $5 million in guarantees will be leveraged nearly two times, to generate nearly $10 million and create approximately 50,000 micro-loans.
- First GFUSA Growth Guarantees transaction has been closed, supporting a loan of $750,000 from a Tunisian bank to ENDA, a Tunisian MFI serving poor entrepreneurs in rural and peri-urban areas. This transaction will produce 5000 loans to poor women microentrepreneurs to support their businesses, which will enable them to improve the living conditions of their families.
- GFUSA conducted a road show in the Philippines, meeting with seven local commercial banks and four microfinance institutions to generate interest in and inform about the Growth Guarantees.
- The second Growth Guarantees Investment Committee meeting was held, during which guarantees totaling $2.3 million were approved for MFIs in India, Nigeria, and Bolivia. This $2.3 million, which will be leveraged more than seven times, will generate approximately 130,000 micro-loans in these countries.
- Raised $31 million in donor guarantees.
- Guaranteed over $4 million in loans to MFIs in Bolivia, India, the Philippines and Tunisia, empowering 43,000 new poor borrowers with access to micro-loans through current guarantees deployed to secure commercial loans for partner MFIs in Bolivia, India, the Philippines and Tunisia.
- The first $31 million tranche of the anticipated $50 million GFUSA Growth Guarantees program have been officially closed.
- The Growth Guarantees roadshow has been launched to educate key markets, such as India and Haiti about the new program.