BlueOrchard Loans for Development 2007 (BOLD 2)
“If the CDO market is drying up, this is just the type of product we need to bring it back to life.” FT Sustainable Banking Awards Jury
Product summary
Closed in 2007, BOLD 2 continued the success of BOLD 1 and was elected ‘Sustainable Deal of the Year’ at the Financial Time's Sustainable Banking Awards in June 2008. The BOLD 2 transaction was a landmark deal that has further promoted microfinance as an asset class to mainstream investors.
BOLD 2 received a credit rating from Standard and Poor’s Rating agency. This was the first time that a microfinance CDO had been rated publicly by a main-stream rating agency.
The success of BOLD 2 has meant that tens of thousands of individual borrowers in low-income regions have been able to secure life-changing credit at favorable terms.
Key product features
- Opportunity for investors to choose level of risk;
- Good diversification option due to its low correlation with other asset classes;
- Low risk of default as MFIs are typically highly solvent;
- BOLD 2 is the world’s largest microfinance CDO transaction;
- BOLD 2 is Standard and Poor’s rated and awarded the FT 'Sustainable deal of the year’ (AA for A notes and BBB for B notes).
Social Impact
- Contribution to growth in emerging economies;
- Supporting the alleviation of poverty, leading to better housing, nutrition, health and education;
- Empowering marginalized groups, such as women, rural entrepreneurs and food producers;
- Effectively promotes commercial microfinance investment to the mainstream financial market .
Key figures as of 30 September 2009
| Total assets | USD 114.4 million | |
| Microfinance portfolio | USD 106.7 million | |
| Nr. of loans outstanding | 21 | |
| Nr. of MFs with outsanding loans | 20 | |
| Yield | A notes: 5.61% | |
| Yield (cont.) | B notes: 6.16% / | C notes: 7.73% |
| % of loans in local currencies | 34% |
Regional concntraton as % of the portfolio
Fund description & partners
The partners
BlueOrchard Finance S.A. is the sponsor and selects and services the portfolio of loans with Morgan Stanley acting as arranger and placement agent. Allen & Overy LLP is acting as transaction counsel. Standard and Poor rated BOLD 2.
Dlsclamer
These materials are not an offer of securities for sale in the United States of America. The securities to which these materials relate have not been registered under the U.S. Securities Act of 1933, as amended (the Securities Act), and may not be offered or sold in the United States of America absent registration or an exemption from registration under the Securities Act. There will be no public offering of the securities in the United States of Amercia. BOLD is not authorised for public sale in Switzerland and must therefore not be publicly marketed in Switzerland.
The performance data quoted hereith represents past performance, and is no guarantee of future results. Your returns and the principal value of your investment will fluctuate so that your shares or accumulation units, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above.
