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MicroBuild Fund

Accelerating the global expansion of housing microfinance


YEARS

2010-2013

CLIENT DESCRIPTION

Habitat for Humanity International (HFHI) is a nonprofit organisation that believes that every man, woman and child should have a decent, safe and affordable place to live.

CLIENT'S OBJECTIVE

Mobilise social investment capital to: increase access to long-term funding to enable financial service providers to expand their housing microfinance programs to the poor; demonstrate the viability and scalability of housing microfinance; provide technical assistance in product design; and steward and share best practice housing microfinance within the microfinance sector.

Results

BUSINESS RESULTS

Structured $100 million fund; assisted in first close of $50 million

Over $36 million in approved transactions as of October 2014

SOCIAL & ENVIRONMENTAL OUTCOMES:

As the funds are deployed, households around the world will have greater access to quality, affordable housing. To date, disbursed transactions are in 14 countries including Cambodia, Peru, Kenya, Tajikistan, and El Salvador, amongst others.

Activities

Assisted HFHI in designing and structuring the MicroBuild Fund and preparing the groundwork for marketing and launch of the fund to impact investors.

Participated in field assessments in key markets, developed financial models and proposed structure for the fund, and performed a mapping of target investors for later fund raising efforts.

Assisted HFHI in fund closing activities, including finalising the business plan, developing an initial pipeline in coordination with the fund manager, and preparing for the launch of the fund.

Assisted in developing tailored due diligence tools for housing microfinance and further expansion of the pipeline of potential investments.

Provided technical assistance to investees to improve their capacity to deliver best practice housing microfinance to low income borrowers.

Enclude’s Director of Inclusive Finance participates in the Investment Committee for the Fund.

LEARNINGS

Based on the Fund activities to date, we have learned that there is indeed a wide demand on a global basis for long-term investment capital to fund housing microfinance expansion. The institutional profile of the microfinance institutions seeking funding is quite varied, from large regulated MFIs to small finance companies. MFIs seek both longer-term capital for expansion of portfolios, as well as targeted technical assistance to assist them in growing their housing microfinance portfolios in accordance with consumer protection principles.


TESTIMONIALS

Enclude supported Habitat from the earliest stages of the inception of fund, working alongside our team through closing and launch. Their dedication helped to make the MicroBuild Fund a reality.

Patrick Kelley, Director of Housing Finance and Market Development