Additional Investment in Fund Investing in Microfinance Institutions in ASEAN Countries and others
Enhancement of International Competitiveness of Japanese Companies and Promotion of Women’s Social Empowerment
- Region: Asia
- Equity Participations
The Japan Bank for International Cooperation (JBIC; Governor: Tadashi Maeda) entered on September 3 an agreement for additional investment in the Japan ASEAN Women Empowerment Fund ("the Fund"). The Fund is managed by BlueOrchard Finance Ltd. and invests in microfinance*1
institutions (MFIs) in ASEAN countries and others.
The Fund was launched in 2016 to support female entrepreneurs in ASEAN countries and others, and has supported approximately 230,000 female micro entrepreneurs by financing 21 MFIs across 7 countries. In September 2016, JBIC signed an agreement to invest in the Fund along with Sumitomo Life Insurance Company (Sumitomo Life Insurance) and other Japanese institutional investors*2
. JBIC plans an additional investment in the Fund up to USD30 million. The Fund will also receive additional investment from Sumitomo Life Insurance and other investors, which will increase the total investment amount in the Fund from approximately USD120 million to USD241 million.
Sumitomo Life Insurance has an interest in the field of microfinance with the aim of diversifying its medium- and long-term revenue base and achieving a sustainable growth of its corporate value, and actively pursues ESG investment*3
. Through the investment in the Fund, Sumitomo Life Insurance expects to obtain the relevant knowledge and information. Providing continued support for their strategy, the investment of JBIC in the Fund is expected to help Japanese companies maintain and increase their international competitiveness.
In addition, JBIC participated in "The G7 2X Challenge: Financing for Women" together with overseas development finance institutions, aiming at contributing to the promotion of women's social empowerment by mobilizing USD3 billion by 2020*4
As Japan's policy-based financial institution, JBIC will continue to actively support Japanese industries in maintaining and increasing their international competitiveness by drawing on its various financial instruments, including equity financing.
Microfinance is a small-scale financial service for low-income earners.
ESG investment is an investment method taking into account non-financial information such as environment (E), social (S) and governance (G) in addition to financial information of companies.