Financiera FINCA Nicaragua issues its first multi-denominational bond offering
February 27, 2017, Managua and Washington, DC – Financiera FINCA Nicaragua is pleased to announce the registration of a $10 million bond program, with the first issuance of one- and three-year bonds worth $1.1 million USD. This is the first multi-denominational bond offering from FINCA’s Nicaragua subsidiary and provides an opportunity for FINCA to expand access to a range of responsible financial services for low-income Nicaraguan entrepreneurs.
The bond offerings generated significant interest from the investment community and the first tranche was oversubscribed. The bonds were issued in three currency denominations: US Dollars, Nicaraguan Cordobas with value maintenance (indexed to USD) and Nicaraguan Cordobas without value maintenance and with an investment grade Fitch credit rating of BBB+.
FINCA Microfinance Holding Company (FMH), which operates 21 banks and microfinance institutions across the globe, is evolving traditional microfinance by using technology and on-the-ground expertise to achieve massive financial inclusion in emerging markets. FMH is achieving this in part by diversifying its sources of funding and will use the proceeds of these bonds to broaden its products and services.
Financiera FINCA, with more than 25 years of work in Nicaragua, has become one of the leading institutions in the microfinance sector in the country. In this role, Financiera FINCA continues to shape the sector by focusing on the needs of its customers by offering them a broad variety of financial services. The strength of the institution is based on the professional development of its employees, customer centric products and a broad branch network.
Andrée Simon, CEO of FINCA Microfinance Holding Company, said “The success of this bond offering is a clear testament to FINCA’s robust financial performance and strong commitment to our mission to expand access to responsible financial services in Nicaragua and around the world.”
Roman Hingorani, CFO for FINCA Microfinance Holding Company, said “FINCA is changing our direction by diversifying our funding base from a heavy reliance on international borrowing to utilizing more local funding sources. This will help us manage our foreign exchange and geographic risks. For customers, this reinforces our role as a reliable banking partner for the millions of customers around the globe.”
About FINCA Microfinance Holding Company (FMH)
The FINCA Microfinance Holding Company is a network of 21 microfinance institutions and banks that provide responsible financial services that enable low-income entrepreneurs and small business owners to invest in their future. With 30 years of experience and a mostly local staff of over 10,000, FMH delivers a double bottom line of profitability and social impact. Follow us on Twitter @FINCA.
About Financiera FINCA Nicaragua
Financiera FINCA Nicaragua is a financial institution providing innovative financial services to more than 42,000 clients through 19 branches nationwide and a loan portfolio of more than US $43 million. In 2011, Financiera FINCA Nicaragua transformed to a licensed financial institution that provides a range of quality products and services. Financiera FINCA Nicaragua is part of the global FINCA microfinance network, serving nearly 2 million clients in 21 countries, with a double bottom line of financial sustainability and social performance.