StanChart, ADB to support microfinance in Asia

StanChart to originate, service a $150 million portfolio of microfinance institutional loans in the region

Standard Chartered Bank jointly with Asian Development Bank will work towards improving access to financial services for the poor in ADB's developing member countries.

Under this programme, Standard Chartered aims to originate and service a $150 million portfolio of microfinance institutional loans across Asia.

ADB will share the risk via a Risk Participation and Guarantee programme on this portfolio for up to $75 million. This regional programme is intended to run till December 2018, said a press release issued by StanChart.

ADB’s support will enable Standard Chartered to extend additional credit to microfinance institutions that will in turn reach more unbanked individuals and finance additional micro enterprises and livelihoods.

Commenting on this innovative initiative, Peter Heidinger, Global Head, Financial Institutions Group at Standard Chartered, said, “Increasing access to financial services is core to the Bank’s approach to sustainable financing. We expect this programme to benefit approximately 30 microfinance institutions in Asia.”

Standard Chartered has been supporting the microfinance sector across Asia, Africa and the Middle East since 2005.

As of December 2012, the Bank has financed $970 million to 73 microfinance institution partners across 17 countries, impacting the lives of 6.4 million people, the majority of whom are women, the release said.