responsAbility Closes $175 Million Microfinance Securitization
responsAbility Investments AG, the international impact asset manager, has today closed a $175 million securitization of loans to microfinance and SME-finance institutions in emerging markets. The proceeds will be used to fund financial intermediaries providing capital to 30,000 small businesses and 5.6 million microfinance borrowers. 81 percent of the borrowers are women.
The transaction pools the borrowing needs of 26 micro and SME finance organizations, thereby allowing them to achieve the scale necessary to access global capital markets. At the same time, the transaction enables investors to contribute to financial inclusion in developing countries, earn a commercial return, and diversify their exposure across multiple borrowers and geographies.