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.

Microfinance: Stan Chart and IFC free MFIs

Standard Chartered and the International Finance Corporation have joined forces to launch the first-ever issuance of credit-linked notes backed by loans to microfinance institutions (MFIs) in sub-Saharan Africa and South Asia.

Peter Sands, Standard Chartered:

Peter Sands, Standard Chartered: unlocking funding for microfinance

As the private sector arm of the World Bank, the IFC is investing $45 million in the notes – a basic credit derivative with an embedded default swap, allowing the issuer to transfer credit risk to investors. The notes will be issued by Microfinance Institutional Loans for Asia and Africa, or MILAA, a special-purpose vehicle set up by Standard Chartered to facilitate microfinance lending.

Vibhuti Sharma, global head of development organizations at the London-headquartered lender, says it only offers microfinance loans in markets where it is either strategically strong – notably in Africa and Asia, two markets that provide most of its earnings – or where it can offer loans in the local currency. "These are the poorest of the poor in these markets, and we are working to ensure they are not exposed to forex risk or asset liability risk," says Sharma.

He admits that these turbulent global times aren’t the easiest in which to offer investors new credit structures backed by loans in high-risk markets.

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