During 2006, BRAC secured $ 180 million in the capital markets to fund microcredit to the poor.  Financing was arranged by several with Citibank as lead.

The connection of capital markets to microcredit is highly innovative, and time will tell if this trend continues. Some may view as junk bond type financing.

The deal brought the global financial markets to the doorsteps of nearly 1.2 million households in Bangladesh. BRAC is the world’s largest national Non Government Organization (NGO) with over 5 million borrowers (mostly women) and 100,000 employees and BRAC focuses on poverty alleviation with funding given to village organizations that undertake a project with the aim of helping members become self-sustaining. About 65% of the loans are for the extremely poor who borrow from US$50 to US$100.

Source: Press Releases 17/1/2007: Innovative BRAC microcredit securitization honoured