Fundacion para el Desarrollo Socioeconomico Rural (FUNDESER), a nonprofit Nicaraguan microlender, plans to launch a public bond issue in April 2013. FUNDESER’s general manager Rene Romero Arrechavala, tells MicroCapital that the organization will be the first NGO in Central America to issue bonds to the public. It is expected that the size of the issue will be the local-currency equivalent of USD 3 million and that the bonds will carry an interest rate between 7 and 9 percent. FUNDESER’s advisor for the bond issue is the Nicaraguan brokerage firm Invercasa.
As of 2011, FUNDESER reports to the US-based Microfinance Information Exchange (MIX) total assets of USD 16.9 million, 25,000 active borrowers, return on assets (ROA) of 0.39 percent and return on equity (ROE) of 6 percent. FUNDESER does not accept deposits, but is in the process of becoming a regulated financial institution as of 2013.
By Charlotte Newman, Research Associate
About Fundacion para el Desarrollo Socioeconomico Rural (FUNDESER)
Fundación para el Desarrollo Socioeconómico Rural (FUNDESER) is a nongovernmental organization (NGO) based in Managua, Nicaragua. FUNDESER was launched as a credit and training program for small-scale agricultural producers before being established as an NGO in 2000. It offers loans for working capital, home improvement and education through 18 branches mainly in rural areas. The agricultural sector is the target of 53 percent of the loans disbursed by FUNDESER while 36 percent are directed to the trade sector. As of 2011, FUNDESER reports to the US-based Microfinance Information Exchange (MIX) total assets of USD 16.9 million, gross loan portfolio of USD 12.8 million, 25,000 active borrowers, return on assets (ROA) of 0.39 percent and return on equity (ROE) of 6 percent. FUNDESER does not accept deposits, but is in the process of becoming a regulated financial institution as of 2013.
Sources and Additional Resources:
MicroCapital Interview with FUNDESER Director Rene Romero Arrechavala.
MicroCapital.org story, February 25, 2013, “MICROCAPITAL BRIEF: Multilateral Investment Fund (MIF) Donates $360k to Fundacion para el Desarrollo Socioeconomico Rural (FUNDESER) of Nicaragua to Support Transition to Regulated Status Under SIBOIF,” https://www.microcapital.org/microcapital-brief-multilateral-investment-fund-mif-donates-360k-to-fundacion-para-el-desarrollo-socioeconomico-rural-fundeser-of-nicaragua-to-support-transition-to-regulated-status/
MicroCapital.org story, December 17, 2012, “MICROCAPITAL BRIEF: Incofin Lends $1m to Fundacion para el Desarrollo Socioeconomico Rural (FUNDESER) of Nicaragua,” https://www.microcapital.org/microcapital-brief-incofin-lends-1m-to-fundacion-para-el-desarrollo-socioeconomico-rural-fundeser-of-nicaragua/
MicroCapital Universe Profile: Fundacion para el Desarrollo Socioeconomico Rural (FUNDESER)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fundaci%C3%B3n+para+el+Desarrollo+Socioecon%C3%B3mico+Rural+%28FUNDESER%29
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