Publication: MFI Capital Structure Decision Making : A Call for Greater Awareness
Date
2007-08
ISSN
Published
2007-08
Author(s)
Deshpande, Rani
Nestor, Camilla
Abrams, Julie
Abstract
Microfinance institutions (MFIs) today
have an increasingly broad range of financing sources at
their disposal. This allows for greater funding
diversification, but it also makes decisions about capital
structure more complex. Several high-profile financing
transactions for MFIs have taken place recently, including
securitizations, local bond issues, the first large-scale
venture capital investment in an MFI, and the first Initial
Public Offering of shares. In addition, where their legal
structure permits, many MFIs are launching large-scale
deposit mobilization campaigns as a core funding strategy.
Consultative Group to Assist the Poor (CGAP) and Grameen
Foundation recently conducted a survey of MFI managers to
better understand MFI capital structure decision-making
processes in the face of these expanding financing options.
Citation
“Deshpande, Rani; Nestor, Camilla; Abrams, Julie. 2007. MFI Capital Structure Decision Making : A Call for Greater Awareness. CGAP Brief. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/a5244ae6-bd3c-59c1-8c8a-355aa43101b1 License: CC BY 3.0 IGO.”