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An agreement has been concluded today between several private and public players in Norway concerning the creation of a Norwegian Microfinance Initiative (NMI). Signatories are the DnB Nor bank, private equity investor Ferd, insurance companies KLP and Storebrand, the Norwegian Agency for Development Cooperation (Norad) and the Norwegian Investment Fund for Developing Countries (Norfund).This unique public-private partnership shares a vision of strengthening the position of poor people in developing counties by helping to create jobs and prosperity on a sustainable basis. The partners in the NMI provide an impressive blend of available capital and expertise. In addition to meeting part of the management costs and reducing the currency risk involved, the public sector partners will contribute their expertise on microfinance. That comes both from Norfund, Norway’s largest investor in this field, and Norad. The private partners are contributing additional capital and knowledge of commercial and financing activities to the NMI, which comprises two funds – the NMI Frontier Fund and the NMI Global Fund – and will also provide professional support. Covering the various phases of microfinancing, this structure will be run by NMI A/S, a new Norwegian management company established by the NMI participants. A total capitalisation of NOK 600 million will be provided by DNB Nor, Ferd, KLP, Norad and Storebrand, split 50-50 between public and private sources. Norfund will provide the public sector’s share, while the Ministry of Foreign Affairs, through Norad, aims to contribute NOK 8 million annually for the professional support activity. The NMI will invest directly and indirectly in microfinance institutions through the provision of equity capital, loans or guarantees. Professional support will be focused on strengthening the administrative structure of these institutions, primarily by building expertise. Operating on a commercial basis, the NMI is intended to yield an attractive outcome in the form of both development effects and traditional financial returns. Further information from: Arthur Sletteberg, Ferd, tel Jan Tore Bergh, Storebrand, tel Jeanett Bergan, KLP, tel Kjartan Stigen, Norfund, tel Dag Arne Kristensen, DnB Nor, tel Ragnhild H Simenstad, Ministry of Foreign Affairs, tel |
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