Orrick advised U.S. impact finance company FINCA Impact Finance in the divestiture of its microfinance operations in Russia – the second largest in the country – to Luxembourg-based Mikro Kapital. The transaction involved restructuring third-party financing from the European Bank for Reconstruction and Development, the MEF and the responsAbility Fund.
As a result, FINCA Impact Finance was able to hand over the legacy it has built in Russia over the past 18 years to a financial services provider that shares FINCA Impact Finance’s commitment to expanding access to responsible financial services by serving microfinance segment. Mikro Kapital has become one of the leading microcredit providers in Russia and the CIS.
Laurent Klein, the Head of FINCA Impact Finance’s Capital Markets Group, noted that Orrick’s special legal consultant Mikhail Usubyan, who handled the transaction, “has been key to helping find a way through the different hurdles we had all along the process.” In addition to Mikhail, the team included partners Larisa Afanasyeva and Konstantin Kroll.
Orrick has assisted FINCA Impact Finance on a number of transactions in Russia and the CIS region over the last three years, including the restructuring of FINCA Impact Finance’s operations in Armenia, obtaining financing in two Central Asian CIS countries, the divestiture of FINCA Impact Finance’s loan portfolio in Russia, and others. The Orrick team on those matters were led by Mikhail and included Larisa Afanasyeva and former associate Maria Kosova.
“Orrick is deeply committed to impact finance. We are proud to partner with FINCA Impact Finance and other impact finance institutions who share a goal of bringing positive social change to their investment and business strategies,” said Mikhail.
Orrick is the first global law firm to establish an Impact Finance practice. Read more about the firm’s practice here.
Read CEE Legal Matters' coverage of the transaction here.