Finnfund and the University of Helsinki jointly invest in Advans Group
Finnfund and the University of Helsinki jointly invest in Advans Group
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Finnfund and the University of Helsinki have provided a EUR 10 million debt arrangement to Advans Group, a microfinance group serving more than one million customers in Africa and Asia, in the first co-financing co-financing.
Finnfund and the University of Helsinki have provided a EUR 10 million debt arrangement to Advans Group, a microfinance group serving more than one million customers in Africa and Asia, in the first co-financing co-financing.
“We are very pleased to make this investment in Advance together with the University of Helsinki. Advans has been our investment target since 2019. We have many interesting influential investment opportunities with an attractive risk and return profile, and we are increasingly looking for new partnerships that will both strengthen our role as an investor and contribute to sustainable development and climate action. “said Markus Pietikäinen (pictured), Finnfund ‘s Chief Information Officer.
Advans Group operates in Cambodia, Cameroon, Ghana, the Democratic Republic of the Congo, Côte d’Ivoire, Pakistan, Nigeria, Tunisia and Myanmar.
With this funding, Finnfund and the University of Helsinki seek to obtain funding for micro and small enterprises and to promote responsible business practices and gender equality in microfinance.
Founded in 2005, Advans Group and its subsidiaries have played a pioneering role in launching responsible and customer-friendly microfinance services in many of its underutilized markets.
The loans are mainly targeted at small businesses with growth potential that will help them create and maintain jobs and improve profitability. In 2020, their average loan size was EUR 2,200 and 60% of their loan customers were women.
“We are grateful to Finnfund for its new commitment to supporting the development of the Advans Group. This new arrangement will allow our subsidiaries to continue to provide customized and innovative financial services to small businesses to drive growth and economic and social development in our countries of operation, which is especially important in the post-coronary virus world, where our clients need funds to continue.
Although small businesses play a key role in promoting economic development in developing countries, they are often excluded from the mainstream financial sector.
Advans aims to address the need for financial services for small businesses and other populations with poorly adapted, limited or no access to formal Financial Services by providing tailor-made financial services in a sustainable and responsible manner.
Advans currently has about 7,500 employees, about 40% of whom are women.
Advans has become an exceptional employer in the marketplace as it invests in hiring and training local graduates, many of whom make successful careers in the company.
Advans has also sought to promote gender equality in the group. For example, the company has increased the number and proportion of women on management teams in all of its African subsidiaries, and in 2020 launched a gender-based project that included an evaluation of Advans ’gender strategy.
“We are very excited about both the opportunity to finance Advans and the opportunity to work with such an experienced influential investor as Finnfund. In investment activities, we strive to be at the forefront of sustainable development and responsibility. With this investment, we can increase the social impact of our investments and promote gender equality in particular, which is one of our core values at the university, ”added Teresa Platan, Director of Information Management at the University of Helsinki.