Dutch Triodos Fair Share Fund Lends $1.25 Million to Peruvian Microfinance Institutions EDPYME EDYFICAR and EDPYME Crear Arequipa S.A.

Peruvian microfinance institutions (MFIs) EDPYME EDYFICAR and EDPYME Crear Arequipa S.A. received $750,000 and $500,000 loans respectively from the Triodos Fair Share Fund.

The Triodos Fair Share private fund—launched by the Netherlands’ Triodos Bank to invest in MFIs that are at least two years old—had an å¥8.2 million portfolio at the end of 2004. MIX Market states that the fund’s loans range from $200,000 to 1 million for a period no more than 5 years, and that there are “usually no formal guarantees.” Interest rates on the loans to MFIs “must be sufficient to cover potential devaluation against the Euro plus to cover costs of 8%.”

With total assets of approximately $50.36 million, EDPYME EDYFICAR provides loans to microentrepreneurs on an individual and group basis while EDPYME Crear Arequipa S.A., with assets totaling approximately $12.52 million, only offers individual loans. In 1997, CARE Peru transformed into EDPYME EDYFICAR. The MFI’s loan portfolio grew from $3.835 million in 1998 to $47.2 million in January 2005. Founded by NGO Habitat Arequipa Siglo XXI in 1992, EDPYME Crear Arequipa’s loan portfolio increased from $1.31 million in 1998 to $10.578 million as of January 2005. EDYPME Crear’s loans range from $100 to $10,000 with “terms between 6 and 24 months.”

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: Triodos Fair Share Fund.”
3) “Microfinance and Fair Trade: Triodos Fair Share Fund.”
4) MIX Market: “EDPYME EDYFICAR.”
5) MIX Market: “EDPYME Crear Arequipa S.A.”
6) “EDYPME Crear Arequipa: Financial Data.”
7) “EDYPME EDYFICAR: Financial Data.”
8) MIX Market: “Triodos Fair Share Fund: Fund Instruments.”

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