We are delighted to announce the latest FIIG originated bond from VisionFund International, the microfinance subsidiary of World Vision. The issue of up to AUD20m of senior unsecured bonds pays a fixed rate coupon of 5.00% p.a. The bonds mature in November 2024 and are available to wholesale investors.
VisionFund International (“VFI”) is a California registered non-profit corporation wholly controlled by World Vision International (“World Vision”). VFI was established in 2003 to operate, manage and fund World Vision’s network of microfinance institutions (“MFIs”) globally.
World Vision is a global humanitarian aid, relief and development organisation working to create lasting developmental change and economic empowerment in the lives of children, families and communities living in poverty.
VFI operates a network of 28 MFIs focused on fragile and vulnerable markets and populations, which is in line with the World Vision strategy. These MFIs are run as commercially sustainable enterprises with both social mission and return objectives.
VFI has a 16 year track record of operating the MFI network and currently manages a gross microfinance loan book of USD434m. With an average loan size of under USD500, VFI has over 1 million borrower clients, which positively impacts over 3.5 million children and their families.
As an established micro financier, VFI has a robust set of governance, risk, compliance and lending frameworks overseen by a well credentialed management team and Board. This is evident in the consistently strong collection rates – in the range of 97-98% (equivalent 2-3% loan loss) – which is not dissimilar to commercial banks.
VFI also draws support from the World Vision network through branding, donations and other resources.
VFI maintains a very conservative and well-capitalised balance sheet with 1.3x leverage.
VFI and its network of MFIs are funded by a mix of international development banks, specialised microfinance investment vehicles and high net worth investors. To broaden and diversify its funding program and support future growth, VFI is seeking to raise up to AUD20m in senior unsecured bonds in the Australian OTC market.
The bonds offer a fixed coupon of 5.00% p.a., paid semi annually and have a five year maturity. The bonds benefit from a range of maintenance-based covenants and defined lending portfolio parameters.
Interested to learn more either as a borrower or investor? Please see the FIIG website or call 1800 01 01 81.
The FIIG Debt Capital Markets (DCM) team arranges long term, flexible AUD bond financing for rated and unrated Australian and New Zealand corporates. The DCM team provides debt advisory services focused on optimising capital structures and diversifying sources of debt funding. DCM has significant fund raising capabilities, arranging over $2.5bn in funding since 2012 and will typically distribute note issuances from $30m-$100m including: senior, junior and mezzanine debt.
Erryn Lloyd-Jones
Erryn has over 18 years’ experience in banking, financial services and direct property, most recently holding the position of Director, Corporate Banking Originations at Westpac Institutional Bank in Melbourne.