Impact investing in action – helping to create a cycle of positive change

3 min read 3 Mar 20

Summary: Through our commitment to MEF, a global microfinance debt fund, our clients have the opportunity to lend for impact by giving micro and small entrepreneurs in developing countries better access to affordable and appropriate finance, and thereby contribute to the improvement of their lives and prospects as a result of the financing provided.

  • M&G provided US$90 million senior debt finance to the Microfinance Enhancement Facility, a $690 million global microfinance debt fund set up in 2009 to offer a reliable and stable source of finance to microfinance institutions (MFIs) in a wide range of developing countries.
  • Expected social impact: M&G financing will directly help 52,000 micro and small entrepreneurs in developing countries.1
  • Expected return premium over equivalent-rated public bonds.

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1 Based on an average loan size of $1,730 to final borrowers. Impact metrics are intended to provide an indication of expected outcome.

The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.