Volume 5, Issue 1: July, 2007

Welcome to the July, 2007 issue of Microcredit Summit E-News, a publication of the Microcredit Summit Campaign.

Compartamos IPO: Microfinance Doing Good, or the Undoing of Microfinance?

On April 20, 2007, the Mexican microfinance institution (MFI) Banco Compartamos completed an initial public offering (IPO) selling 30 percent ownership of the bank. The existing investors received $450 million, valuing the entire institution at some $1.4 billion. An intense discussion, focused largely in the United States, has ensued. In this special edition of the Microcredit Summit e-News Bulletin, we have asked six leaders in the field to share their views on the IPO and its implications for the future of microfinance. Three of the commentators present positive viewpoints about the IPO and its implications and three are negative. We have also included a longer Draft Concept Note written by Richard Rosenberg of the Consultative Group to Assist the Poor (CGAP).

We would like to extend our gratitude to all of the contributors. We also invite you to share your own comments on our discussion forum. Please limit your comments to 250 words.