The Netherlands headquartered Hivos-Triodos Fund (HTF) recently loaned approximately $650,000 to three Latin American microfinance institutions (MFIs). Peruvian MFIs EDPYME Nueva Vision, with a 2004 year end portfolio of about $3.8 million, and EDPYME Crear Tacna, holding 2004 year end total assets of approximately $7.37 million, received $150,000 and $300,000 respectively, while El Salvadorian MFI Sociedad Cooperativa de Ahorro y Credito AMC de R.L (AMC), with total assets in 2004 of approximately $6.45 million, received $200,000. The three MFIs each direct money to micro-businesses in semi-urban and rural areas within their countries.
The Hivos-Triodos Fund, which was formed out of a joint initiative between the Humanist Institute of Development Cooperation (HIVOS) and Triodos Bank, provides loans to MFIs. MIX Market states that the HTF’s loans range from $150,000 to $1 million for a maximum of five years and there are “usually no formal guarantees required.” “Interest rates must be sufficient enough to cover potential devaluation against the Euro plus to cover minimal costs of 8%.” The fund had a 2004 year end portfolio totaling å¥17 million.
Additional Resources
1) Consultative Group to Assist the Poor (CGAP): “Microfinance Capital Markets Update” is the best source for monthly updates on debt and equity deals in microfinance.
2) “Funds: Latin America—Peru.”
3) “Hivos-Triodos Fund Foundation.”
4) “HTF (The Hivos-Triodos Fund).”
5) MIX Market: “EDPYME Crear Tacna (EDPYME Crear Tacna).”
6) “Sociedad Cooperativa de Ahorro y Credito AMC de R.L.”
7) “Funds: Latin America—El Salvador.”
8) MIX Market: “EDPYME Crear Tacna: Financial Data.”
9) MIX Market: “Cooperativa AMC: Financial Data.”
10) “Hivos-Triodos Fund Foundation: Annual Report 2004.”
11) MIX Market: “Hivos-Triodos Fund: Fund Instruments.”
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