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U.S. and European Investors Invest $1.95 million in Haitian Microfinance Institution
The capital, which is a mixture of long-term debt and equity, will enable Fonkoze Financial Services to reach over 100,000 clients with its package of financial services geared towards the very poor over the next 3 years.Individual and institutional investors, which include City National Bank of New Jersey, Sisters of Loretto, DOEN Foundation and Oikocredit, feel fortunate to be an active participant in this historic event. Gordon McCormick, a retired investment banker, who helped to raise the US capital, and an investor said, “I am delighted to have participated as an investor and as part of the design team for this financing. This transaction will increase the company's capital base by 500%. This should provide a solid base to facilitate the achievement of the institution's dynamic expansion plans.”
Even with the influx of foreign capital, Fonkoze Financial Services will be a Haitian-owned institution through a unique capitalization structure that included a $500,000 purchase of shares by Fonkoze the foundation that initially began providing microfinance services to the rural poor of Haiti and $50,000 invested through the Fonkoze Employee Trust bringing the total capital to $2.5 million.
The two institutions will continue to work closely together to break the bonds of poverty in Haiti. Fonkoze, the foundation, will continue to provide essential educational services to the clients of both institutions, open new branches, develop and test new financial products, and expand a business development program geared towards increasing business owners in the provinces. Fonkoze Financial Services will provide micro-loans, savings deposits, money transfer services and currency exchange facilities to its 50,000+ primarily rural clients.
Microfinance is the term used to describe the small loans, savings and other financial services offered to poor people in the developing world-people who, because they are poor, are not served by commercial banks in their own countries. A typical loan is usually between $50 and $500.
Fonkoze (pronounced Fon-koh-zay), is an acronym for Fondasyon Kole Zepòl, which means "Shoulder to Shoulder Foundation" in Creole. Fonkoze is Haiti’s largest microfinance provider with 10 years of experience in providing a diverse range of financial and educational products to people living below the poverty line in the provinces of Haiti. Fonkoze currently serves over 25,000 borrowers and 50,000 people who have savings accounts through 20 branch offices in all nine departments (or provinces) of Haiti. Over 95% of Fonkoze's clients are women. The average loan is below $150.
For more information, please contact Sharmi Sobhan, Director of Fonkoze Financial Services at 212.822.9553 or via email at This e-mail address is being protected from spambots, you need JavaScript enabled to view it