Our Partners

 

The Currency Exchange Fund (TCX) is a +$500 million fund founded by the Dutch development bank FMO and the Dutch government. TCX’s mission is to offer development lenders currency hedging in markets where no commercial hedging options currently exist. This makes it virtually the only option for hedging in the neediest, yet highest risk markets. As an investor in TCX, MFX receives access to hedging capacity in a wide range of exotic currencies allowing it to re-hedge the risk it takes with its clients in the same way an insurance company uses reinsurance. By offsetting the currency risk on its own balance sheet, MFX can build a portfolio of hedges with microfinance clients and remain a strong counterparty for the industry.

MFX is supported by a AAA $20 million credit guarantee from the US Government’s Overseas Private Investment Corporation (OPIC). Our OPIC guarantee allows us to trade on favorable terms with TCX and commercial banks, while minimizing MFX’s liquidity requirements. The OPIC guarantee is also the key reason we do not have to ask for collateral from our clients. Through its partnership with MFX, OPIC is promoting safer lending practices in the microfinance industry by removing the prohibitive costs of collateral for MIVs and MFIs hedging currency risk.

FMO is the Dutch government’s development bank and a leading development lender. FMO has provided key grant funding to get MFX off the ground and to help expand the reach of its educational programs.

MFX evaluates the credit risk of its clients with a rigorous, independent credit evaluation process conducted by Luminis. Luminis, the first MFI rating agency and a leader in credit evaluation of MIVs, manages MFX’s counterparty credit evaluation based on a customized credit scoring system developed for MFX.  By partnering with Luminis for this function, MFX avoids conflict of interest and assures consistency of pricing for clients. To read more about Luminis’ evaluation please visit our section on Becoming a Client.

MicroFinanza Rating offers a range of rating products to microfinance institutions (MFIs), to investors, regulators and networks. MFX is partnering with MicroFinanza to help with the credit due diligence process, particularly with MFIs. To read more about MFX’s credit due diligence evaluation please visit our section on Becoming a Client.
Standard Chartered PLC, ranks among the top 20 companies in the FTSE-100 by market capitalisation. The London-headquartered Group has operated for over 150 years in some of the world’s most dynamic markets, leading the way in Asia, Africa and the Middle East. MFX’s Partnership with Standard Chartered allows us to help our clients access hedging in a wide variety of currencies.

The US Agency for International Development (USAID) has provided key early-stage funding to MFX’s education program.

 

Foundations and Funds

The following foundations and funds are investors in MFX, as well as our clients.

Investors: Microfinance Lenders and Foundations

 

Funders