ADB, CAA Sign €30 Million Agreement to Improve Financial Inclusion in Asia
MANILA, PHILIPPINES (22 March 2017) — The Asian Development Bank (ADB) signed a €30 million ($32 million) equity investment agreement today with CreditAccess Asia (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.
“Through this investment, ADB and CAA will help to deepen access to credit and finance for some of Asia’s most underserved markets,” said Christine Engstrom, ADB’s Director for the Private Sector Financial Institutions Division. “CAA provides significant support in the communities in which it operates and we are happy to support them and their Asian microfinance subsidiaries through their next stage of growth.”
Chief Executive Officer of CAA, Paolo Brichetti added, “We are very pleased to have ADB on board as a strategic shareholder in CAA. ADB fully supports our mission to become a leading provider of financial products for micro and small businesses in India and Southeast Asia. Given the critical institutional role of ADB in the region and its experience in supporting financial services across Asia, we are confident to have established the right partnership to accomplish our plans and to meet our customers’ needs. We have built a unique relationship over time with our clients and we aim to be recognized as their key financial and business partner.”
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.