Orrick has advised U.S. impact finance company FINCA Impact Finance in the divestiture of its micro-finance operations in Russia to Luxembourg-based Mikro Kapital. The transaction involved restructuring third-party financing from the EBRD, the MEF, and the responsAbility Fund. Mikro Kapital was advised by Italian/Russian law firm Carnelutti, and the lenders were advised by Dentons.
According to Orrick, "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 micro-finance segment. Mikro Kapital has become one of the leading microcredit providers in Russia and the CIS."
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.
“Orrick is deeply committed to impact finance," said Orrick Special Legal Consultant Mikhail Usubyan, who led the firm's team on the transaction. "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." In addition to Usubyan, the Orrick team included Partners Larisa Afanasyeva and Konstantin Kroll.
The Dentons team was led by Moscow-based Partner Timothy Stubbs, with Luxembourg-based Partner Stephane Hadet advising on Luxembourg aspects of the deal.
The Carnelutti team was led by Managing Partner Pietro Ferrero and included lawyers Denis Arkhipov and Tatiana Fedina.