BOPA Pte Ltd
Region and country of operations: Asia
Jurisdiction of registration: Singapore
Business sector: Microfinance
Date of agreement (month/year): 3/2020
Finnfund’s financing: USD 5,000,000
Share of Finnfund’s financing: 39.3%
Instrument: Equity
Size of project/financing: USD 12,700,000
Environmental and social category: B
Project description
BOPA is a holding company established in Singapore in 2013 by private individuals. It invests in regulated small (Tier 2 and 3) microfinance institutions (MFI) in Asia. The MFIs target underserved population who would not have otherwise access to financial services. Large share of the MFIs’ clientele are female entrepreneurs and rural population.
Currently BOPA’s estimated market value of its investment portfolio is USD 35 million and consists of 8 investments located in Kazakhstan, India, Myanmar, Kyrgyzstan, Cambodia, Vietnam and East Timor. Finnfund participated in BOPA’s fundraising round with an investment of USD 3 million in 2017 and invested further USD 1,5 million in 2018.
BOPA seeks to invest in MFIs where it sees potential to develop the institution through good corporate governance, funding and efficient IT solutions to become a leading sustainable and socially responsible MFI in its region. The purpose of the latest fundraising round is to invest in selected existing portfolio companies and potentially in new companies.
Main development impact
Financial sector development promotes economic growth. Financial inclusion offers access to regulated financial services also to poor population. BOPA’s portfolio MFIs are Tier 2 and 3 institutions offering also very small loans (a couple of hundreds USD) to most vulnerable groups like women and rural population.
Providing loans to female entrepreneurs empowers women and offers possibility for a better life also for their families. Financing micro and small enterprises will create jobs and tax income in target country.
Additionally, BOPA has an active role in developing portfolio companies’ social targets and practices using SPI4 tool and framework.
The project is classified as gender project fulfilling the 2X Challenge criteria.
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