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Bopa

Region and country of operations: Asia
Jurisdiction of registration: Singapore
Business sector: Fund/Microfinance

Date of agreementFinnfund financingShare of Finnfund financingSize of project/financing
5/2017USD 3,000,00043%USD 6,9 million
8/2018USD 1,500,000USD 6,5 million

Environmental and social category: B

Project description

BOPA invests in regulated small (Tier 2 and 3) microfinance institutions (MFI) in Asia. The MFIs target underserved population who would not have otherwise access to financial services. Large share of the MFIs’ clientele are female entrepreneurs and rural populations. BOPA emphasizes the balance between delivering financial returns and solid social impact.

Finnfund made an equity investment of USD 3 million in BOPA in June 2017. BOPA seeks to invest in MFIs where it sees potential to develop the institution through good corporate governance, funding and efficient IT solutions to become a leading sustainable and socially responsible MFI in its region. The goal is to shape strong and responsible microfinance institutions in Asia that will grow to reach over 1 million clients by 2025.

Finnfund made an additional equity investment of USD 1.5 million to help BOPA expand. BOPA seeks to invest in MFIs where it sees potential to develop the institution through good corporate governance, funding and efficient IT solutions to become a leading sustainable and socially responsible MFI in its region. The goal is to shape strong and responsible microfinance institutions in Asia that will grow to reach over 1 million clients by 2025.

Main development impact

Development of the financial sector promotes economic growth. Financial inclusion provides also poor people with better access to regulated financial services. BOPA’s portfolio MFIs are Tier 2 and 3 institutions offering also very small loans (app. USD 200) to most vulnerable groups like women and rural populations. Providing loans to female entrepreneurs contributes to women’s empowerment and creates opportunities to build a better life also for their families. Financing micro and small entreprises generates jobs and tax revenue. BOPA aims to generate impact also through active equity participation and involvement in the corporate governance of the institutions it invests in.

BOPA emphasizes the balance between delivering financial returns and solid social impact BOPA’s portfolio companies paid taxes of USD 589,000 in 2017. During 2017, the number of portfolio company employees grew from 1,440 to 1,666, out of which 746 were female employees.

More information

http://www.bopa-microfinance.com

Bopa Kambodza