The Microfinance Council of the Philippines and PlaNet Finance, a Paris-based non-profit organization, recently conducted a series of one-day training sessions on How to Prepare your MFI for a Due Diligence with Foreign Loan Providers/Investors. The training sessions were held at the Discovery Suites in Pasig City, at the Crown Regency Hotel in Cebu City, and at the Grand Regal Hotel in Davao City, on March 3, 5, and 7 respectively.

The training was intended to orient Executive Directors, Finance Directors and Board members of MFIs on the requirements of European investors in evaluating the soundness of an MFI’s operations before they commit to provide a loan or invest in the equity of a MFI.

The training sessions were provided with detailed information on how to deal with European social investors. Each session began with an overview of the microfinance sector in the country. It was followed with a discussion on the available sources of finance for MFIs, preparation in the due diligence process, negotiating terms and conditions with European social investors, and the elements and features of a due diligence process. A sample case study of an MFI that underwent a due diligence process was presented. A discussion on the importance of financial transparency and the advantages for MFIs that regularly report to the Microfinance Information exchange or the MIX was also done.

Participants came from microfinance institutions and support organizations, mostly members of MCPI – Center for Community Transformation, Oikocredit Philippines, Punla sa Tao Foundation, Inc., ABS-CBN Bayan Foundation, Inc., SEEDFinance Corporation of Cooperatives, APPEND, Norfil Foundation, Inc., FICO Bank, Opportunity Microfinance Bank, KMBI, Metro Ormoc Community Cooperative, Dungganon Bank, Inc., Cebu Micro-Enterprise Development Foundation, Inc., FCB Foundation, Inc. , Negros Women for Tomorrow Foundation, Inc. Rural Bank of San Enrique (Iloilo), Inc., Valiant Bank, Paglaum Sang Panimalay Foundation, Inc., MIFAMCO, Paglaum Multi-purpose Cooperative, Friend Foundation, KFI Center for Community Development Foundation, Inc., Ad Jesum Development Foundation, Inc., MILAMDEC Foundation, Inc., Cooperative Bank of Misamis Oriental, Cantilan Bank, Inc., Katotohanan, Pagkakaisa at Serbisyo – SEED, Inc., Saranggani Rural Bank, Inc., People’s Bank of Caraga, Inc., Gata Daku Multi-purpose Cooperative, and Maranding Women Investors Multipurpose Cooperative. The session in Davao City was coordinated with the Mindanao Microfinance Council.

The training sessions were facilitated by Apollin de Bardin and Laure Anquez of PlaNet Finance and Allan Sicat of MCPI.

The sessions are part of the activities under the Asia Invest Project of PlaNet Finance. The objective of the project is to provide European investors and Asian MFIs with the necessary information, know-how and tools to facilitate investments in thirteen Asian microfinance markets.
 

HOME