Dutch Triodos Bank Makes Over $7m in Worldwide Microfinance Investments via Multiple Microcredit Funds

Details of all of the latest Triodos-Doen Fund deals are below:

The individual deals were primarily debt financings, including a number of “syndicate loans” funded with partner MFIFs. Among the groups that Triodos-Doen partnered with were two other funds managed by the Dutch development bank: the Hivos-Triodos Fund and the Triodos Fair Share Fund. Though primarily focused in Latin America, Triodos’ microfinance investments had a broad reach, extending to Eastern Europe, Africa, and Asia as well.

Triodos-Doen and Triodos Fair Share Fund also participated in a round of equity financing with Bolivian microfinance institution, FIE S.A.. FIE S.A. is the result of an effort by the Center for the Development of Economic Initiatives. The organization offers both lending and remittance services to support small-scale economic activities of families and people living in poverty. At the end of 2004, FIE S.A. had total assets of US$59,638,363 and generated a return on these assets of 3.02%. Typically, Triodos-Doen attempts to allocate 1/3 of its funds to equity deals such as this and 2/3 to debt financing. Overall, the fund maintains a portfolio of 64 active investments as of 12/31/04, and increased its Net Asset Value by 12% from 2003-2004, according to the fund’s most recent annual report.On the debt side, Triodos-Doen extended a number of loans to Latin American microfinance institutions. FINCA Mexico received a US$750,000 loan. As a member of the Foundation for International Community Assistance network, FINCA Mexico uses the “Village Banking” methodology to provide lending services to entrepreneurial women that often live on less than US$2.00 per day.

Peruvian microfinance institutions Edpyme Proempresa and Edpyme Edyficar both received loans from multiple Triodos Bank funds. Proempresa, with US$12,680,540 in assets as of 12/31/2004, received both a US$600,000 loan from Triodos-Doen, and a loan in Peru’s local currency, the New Sol, from Hivos-Triodos. Proempresa will use these funds to serve its individual clients with competitive advantages in areas such as handicrafts, medicinal plants, and agro-industry. As of year-end 2004, the microfinance institution had generated a 1.95% return on assets. Edyficar, likewise, received a å¥700,000 syndicated loan from Triodos-Doen and the Triodos Fair Share Fund. This money will finance activities for microentrepreneurs in both urban and rural settings. Edyficar had total assets of US$50,361,010 at year-end 2004, and generated a return on assets of 1.90%.

Beyond Latin America, the Triodos-Doen Fund again partnered with Hivos-Triodos to make a US$1,390,000 syndicated loan to K-Rep of Kenya. Originally an intermediary for funding non-governmental organizations, K-Rep became the first commercial bank in Kenya to target low-income clients. With US$35,057,877 in assets, K-Rep generated a return of 3.03% in 2004.

Extending its reach still further, Triodos-Doen also financed a convertible loan for Cambodian Entrepreneur Building Limited (CEB). CEB focuses on entrepreneurial, poor women in both urban and rural areas throughout Cambodia. It had assets of US$4,307,422 in 2004 and generated a return on assets of 2.53%.