This Housing Fund was established by Habitat for Humanity International (HFHI) and Triple Jump in 2012. The MicroBuild Fund provides debt capital for housing solutions that financial intermediaries offer to their low-income end-clients. A unique feature of HFHI is that it provides funds and rolls out a complementary technical assistance program to help financial intermediaries to develop and to improve their housing products, as to better serve their end clients, in the end.
The main shareholders in the fund are: HFHI and the Omidyar Network, a US-based private social investor. The Overseas Private Investment Corporation (OPIC), the development finance institution of the US government, invests USD 45 million of debt capital in the fund. The first loans were disbursed in September 2012. At the end of 2012 a total of USD 4.8 million - divided between four institutions - is outstanding.
MicroBuild Fund portfolio outstanding by region, December 2012
MicroBuild Fund portfolio outstanding by currency, December 2012
The MicroBuild Fund (MBF) has been established jointly by Habitat for Humanity International and Triple Jump in 2012 and will supply debt capital and technical expertise to financial institutions to increase availability of housing loan products to its low-income customers. As MBFs investment manager, Triple Jump will select microfinance institutions that demonstrate good financial standing, and strong commitment to innovative housing microfinance products. The applicable assessment criteria are below.
Institutional / Financial Criteria
• Operationally Sustainable or in positive trend
• Strong management & good corporate governance
• Good portfolio quality
• Reasonable leverage (debt/equity)
• Good social performance
• Audited Financial Statements of more than 3 years
Housing Microfinance Criteria
• Strong commitment of Management to Housing Microfinance
• Housing Microfinance exists as separate product*
• Minimum Housing Microfinance Portfolio > USD 300,000
• Interest in supporting end clients to build quality houses
* Committed financial institutions without existing housing microfinance products can become HFHI Technical Assistance partners
For MFIs interested in the MicroBuild Fund, please contact Triple Jump using the application form.
At this stage, MBF has mobilized millions of debt and equity funding with the goal to reach $ 50 million within five years. The fund will run for at least ten years and expects to provide loans to 30 to 40 financial institutions. The first loans have been disbursed in September 2012. It is anticipated that the portfolio will increase and subsequently provide more institutions with capital and technical assistance, in due course.
The main objectives of the MicroBuild Fund are:
- to provide a source of long-term social investment capital enabling financial institutions to expand their housing microfinance portfolios;
- to demonstrate the viability and scale opportunities of housing microfinance to the microfinance sector (MFIs, their networks, and the donor and investor communities); and
- to provide leading technical assistance in the design, to offer refinement of sustainable housing products, and to lead and share best practices within the sector.