Many microfinance institutions (MFIs) in developing and transition economies have received foreign funding, especially the larger MFIs. Most of that funding has consisted of grants or highly subsidized loans from donor agencies, including such bilateral donors as Agence Française de Développement or the US Agency for International Development, and multilateral agencies such as the United Nations Development Programme or the World Bank.

Apexes are an important source of local funding for microfinance—and even more so since the global financial crisis.

This guide introduces microfinance institutions to securitization as a potential source of financing.

What is the best way to support a microfinance institution (MFI) that has a track record of extending quality financial services to significant numbers of poor people on a progressively financially sustainable basis?