The Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse, reported MicroCredit Enteprises, a microfinance investment firm based in Sacramento, California, has issued two loans totaling over USD 1.1 million to two separate microfinance institutions (MFIs). EDPYME Alternativa of Peru was granted a loan of USD 700,000 and Tchuma of Mozambique received USD 400,000.
MicroCredit Enterprises is a non-profit organization that leverages private capital to promote micro-enterprises throughout the developing world by granting loans and guarantees to creditworthy microfinance institutions. According to “financial data” on the MIX, as of October 2007, MicroCredit Enterprises had a portfolio of USD 9.8 milion. Founded in 2005, MicroCredit Enterprises enlists the services of just one employee and 40 pro bono executives. The organization has a low operating expense, with approximately 3% of its loan portfolio or USD 300,000 allocated to budgeted expenditures.
EDPYME Alternativa, headquartered in Chiclayo, Peru, was founded in 2001. EDPYME Alternativa is a non-bank financial institution that provides financial services to micro-enterprises in the north and eastern regions of Peru. According to its most recent “financial data” on the MIX, the MFI had total assets of equivalent USD 8.2 million which consisted of a gross loan portfolio of equivalent USD 5.2 million. Return on assets for the MFI was 0.95% and it had return on equity of 5.11%. At the end of 2006, the MFI serviced 11,353 active borrowers of which approximately 57% are women.
Tchuma (Tchuma Cooperativa de Crédito e Poupança), a savings and loan cooperative in Maputo, Mozambique, was founded in 1998 and provides credit and savings services to entrepreneurs in Mozambique, particularly women. As of December 2006, the institution serviced 9.004 active borrowers. According to its most recent “financial data” on the MIX, it had total assets of equivalent USD 3.3 million and a gross loan portfolio of equivalent USD 2.6 million. Return on assets was 2.39% and return on equity was 4.29%.
The Chief Executive Officer of MicroCredit Enterprises, Jonathan C. Lewis, co-authored a paper, “Mission Investing in Microfinance: A Program Related Investment (PRI) Primer and Toolkit”, that was highlighted on MicroCapital.org last month.
Additional Resources:
CGAP: “List of Recent Transactions”
EDPYME Alternativa: http://www.alternativa.com.pe/
MicroCredit Enterprises: http://www.mcenterprises.org/
MicroCapital.org article, September 25, 2007: “Mission Investing in Microfinance: A Program Related Investment (PRI) Primer and Toolkit”
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