Jarri Jung From Triple Jump on the Role of Subordinated Debt in MFI Financing

Jarri Jung is Director of Financial Institutions at Triple Jump. In this episode, he discusses the outlook for the microfinance sector and talks about the opportunities and challenges of lending subordinated debt (subdebt).

Key insights:

• The health crisis has passed but higher interest rates and the inflation environment have replaced Covid as the main concern facing the industry.
• Although subdebt is not equity, #MFIs using it acts as a catalyst to growth because they can leverage up and take on more debt, and grow assets.
• Subdebt is normally just a carve-out of mainstream debt funds; Triple Jump's dedicated subdebt fund is a unique proposition.