The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Small-scale lending: A Bold approach to microfinance

CLO facilitates the provision of loans to the world’s poorest citizens.

Investors are increasingly able to put their money to work creating social as well as financial returns, thanks in part to the expanding role of investment banks in globalizing the funding of microfinance institutions (MFIs). On March 1 Swiss microfinance specialists BlueOrchard announced the launch of a collateralized loan obligation led by Morgan Stanley called BlueOrchard Loans for Development (Bold) that it describes as a landmark transaction: the securitization of loans to a diverse portfolio of microfinance institutions in 13 countries.

The cash raised in the issue will ultimately be loaned in amounts as small as $50 to micro entrepreneurs in such countries as Azerbaijan, where access to financial services for the poor is severely limited. Investment banks are able to offer secure credit and extensive advertising but their real worth is in providing the mechanisms that convert investors’ euros and dollars into the local currencies that MFIs need to deliver. Jack Lowe, CEO of BlueOrchard, says: “We have already done a securitization in the US but this transaction is groundbreaking in that we have structured it to access mainstream capital markets investors and have included local currency loans.”

Annibale, Citigroup: hopes to reduce costs

Bob Annibale, head of microfinance at Citigroup, says that the biggest challenge for global banks working with local MFIs is in helping them to reduce their substantial operating costs.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree