Friday, October 06, 2006
ShoreCap International, Plantersbank partner in microfinance
ShoreCap International Ltd., an international private equity company based in the United States and Planters Development Bank, the largest private development bank and leading SME-oriented finance institution in the Philippines, have formed a strategic partnership to promote emergence of competitive micro enterprises in the Philippines through private finance.
ShoreCap International is making available the initial investment of US$2 million as additional funding for Plantersbank’s micro finance operations. The investment is backed by a technical assistance grant from ShoreCap, which will provide Plantersbank with training, advice and transfer of technology needed to support the operation of its microfinance channels.
The partnership with ShoreCap International comes shortly after Plantersbank announced it absorbed its Davao-based affiliate Micro Enterprise Bank, a move that will strengthen and expand the reach of its micro credit delivery platform and accelerate the growth of its small business loans portfolio.
“This long-term partnership with ShoreCap International will enable Plantersbank to fill the financial service gaps in the micro enterprise sector at a faster rate and more efficiently,” according to Plantersbank chairman Ambassador Tambunting. “It will also contribute to stronger, viable micro enterprises and increase the attractiveness of entrepreneurial activities as an alternative means of livelihood.”
“ShoreCap is strategically focused on making investments here in Asia and we believe the Philippines offers an excellent opportunity to implement our development mission,” ShoreCap executive vice president and chief investment officer Davis Golding said.
Mr. Golding further noted that ShoreCap and Plantersbank share a common thrust to provide financial support to the micro and SME markets, enabling both entrepreneurs and employees to improve both their businesses and their lives.
ShoreCap International Ltd. is an international private equity company seeking to invest in focused business banks, regulated microfinance institutions and other regulated non-bank financial service companies striving to profitably meet the credit needs of micro entrepreneurs and small businesses in underserved markets. Founded in mid-2003 with $28.3 million in capital commitments, ShoreCap’s goal is to support the growth of development finance institutions in Asia, Africa and Eastern Europe.
ShoreCap was created by ShoreBank Corporation, a $1.8 billion asset U.S. community development bank holding company with over 30 years experience in building sustainable development financial institutions. Joining ShoreBank are 13 other investors, including ABN AMRO Bank, the Asian Development Bank (ADB), BIO, Calvert, CDC Group, the European Investment Bank (EIB), the Evslin Family Foundation, Finnfund, FMO, Ford Foundation, Gatsby Charitable Foundation, the International Finance Corporation (IFC) and the Skoll Foundation.
Planters Development Bank’s strong focus on the SME market and track record in SME financing spanning 45 years puts it in the best position to stir business opportunities in the micro enterprise sector. Its major international shareholders the World Bank’s International Finance Corporation (IFC), Netherlands Development Finance Company (FMO) and the Asian Development Bank (ADB) collectively own 40 percent of the Bank.
Plantersbank and ShoreBank Corporation together with Europe’s Triodos Bank earned distinction as the three banks in the world cited in the Harvard Business School Conference on Global Poverty for their strong “double bottom line approach”—successfully combining profitability with the pursuit of social development objectives.