MICROCAPITAL BRIEF: Incofin Loans $3m to Cooperativa Pacifico for Microfinance in Peru

Belgium-based Incofin Investment Management (IM) recently disbursed a loan of USD 3 million from one of its funds, Incofin CVSO, to Cooperativa Pacifico to allow the Peruvian microfinance institution to expand its “range of products and services so that they can provide their members with tailored solutions.” Work on the transaction began in 2019, but it was delayed by “having to comply with stricter rules and assessments of a new regulator” as well as the COVID-19 pandemic.

David Dewez, the Regional Director for Latin America at Incofin IM, said, “The growth of Pacifico is achieved by keeping the founding values and principles high…. That is why it is a privilege and honor for Incofin to be able to financially support an entity that continues to contribute to its financial inclusion mission.”

Established in 1970, Cooperativa Pacifico provides financial services to households as well as micro-, small and medium-sized enterprises (MSMEs) in Peru. Of its loans, 57 percent are in amounts under USD 10,000. Beyond loans, Cooperativa Pacifico offers services such as savings, mobile banking and collective weddings. During 2018, Cooperativa Pacifico generated net income of PEN 30 million (USD 8.4 million) – a return on assets of 11.5 percent – on total assets of PEN 2.9 billion (USD 820 million).

Incofin CVSO invests in microfinance institutions with the intent to “help enterprising people get started working for themselves and improve their living conditions.” As of 2019, the fund had EUR 81.5 million (USD 91.1 million) invested in 30 countries.

Incofin IM is a for-profit firm that was founded in 2001 and seeks “to promote inclusive progress.” As of January 2020, it has 320 investees in 66 countries, mostly working in financial inclusion and agriculture. Incofin’s portfolio is valued at USD 1 billion and comprises the following funds: agRIF, BRS Microfinance Coop Fund, Fairtrade Access Fund, Fonds pour l’Inclusion Financière en République Démocratique Congo (FPM), Incofin CVSO, Invest in Visions, Rural Impulse Fund (RIF) II, Volksvermogen and a loan portfolio of vdk bank.

By Nathan Kiplagat, Research Associate

Sources and Additional Resources

Incofin IM press release
https://incofincvso.be/en/2020/8579/

Cooperativa Pacifico homepage
http://www.cp.com.pe

Cooperativa Pacifico financials
https://issuu.com/cooperativapacifico/docs/memoria_2018_v3

Incofin IM homepage
https://www.incofin.com

Incofin CVSO homepage
https://incofincvso.be/

Incofin CVSO financials
https://incofincvso.be/downloads/

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