On 5 April 2007, Symbiotics closed a Collateralized Debt Obligation (CDO) deal that raises funding for micro-finance institutions (MFIs). Symbiotics acted as sole sponsor and arranger of the deal and as sole originating agent of the underlying loans. The MFIs come from five countries in South America, Eastern Europe, Central Asia and East Asia. Financing has been arranged in USD, EUR and PEN (Peruvian Soles). The deal has a volume of some USD 18 million.
Through this asset-backed funding deal, MFIs secure medium-term funding on flexible terms to support continued growth in their micro-lending activity. Despite the small size of the micro-loans (a few thousand Euro on average), there is a high potential in terms of business productivity gains and job creation supported by this important niche lending activity. It is estimated that the transaction will result in the direct financing of at least some 10,000 new micro-loans. The underlying assets of the deal are term loans to seven MFIs in Azerbaijan, Bosnia, Cambodia, Ecuador and Peru. All underlying assets are senior unsecured term loans to MFIs with four year maturity. To provide term loans denominated in currencies different from USD, Symbiotics arranged for cross-currency swaps in EUR and PEN (Peruvian Soles). The transaction was structured under the Luxembourg Securitisation Law of March 2004. The securitisation company, Microfinance Loan Obligations S.A., Luxembourg, has been sponsored by Symbiotics, together with the European Investment Fund (EIF) to facilitate microfinance asset-backed deals. The notes are issued in four classes of seniority and are placed mostly with specialised funds.
About Symbiotics SA Information, Consulting & Services
Symbiotics SA Information, Consulting & Services' mission is to serve the microfinance industry through investment intermediation services. The company provides innovative business services to investors and practitioners of micro- and small enterprise dev
More information : http://www.symbiotics.ch/en/corporate_news.asp?id=b442Responsible editor
Vincent Dufresne
Symbiotics SA Information, Consulting & Services
Rue de Lyon 75
1203 Genève
T 022 301 73 07
F 022 301 73 09
info@symbiotics.ch
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Symbiotics closes Collateralized Debt Obligation (CDO) deal to provide local currency financing to microfinance institutions | |  |
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