In January 2011, the Inter-American Development Bank (IDB) provided MicroCapital with data pertaining to debt and equity investments made during 2010 via the Multilateral Investment Fund (MIF) and the Social Entrepreneurship Program (SEP). The investments are covered by MicroCapital in three separate briefs. Links to the other two briefs are provided at the end of this brief.
The Inter-American Development Bank (IDB), a multilateral, development finance organization based in the United States that operates in Latin America and the Caribbean, reported that in June 2010, the Multilateral Investment Fund (MIF), an investment fund managed by IDB, made a USD 1 million equity investment in Solutiones de MicroFinanzas SA (Microserfin), a microfinance institution (MFI) that was established in Panama in 1998. Microserfin reported to the Microfinance Information Exchange (MIX) in 2009 total assets of USD 9.2 million, return on assets (ROA) of 6.41 percent and return on equity (ROE) of 13.46 percent. In the same year Microserfin had 7,900 active borrowers with an average loan balance per borrower of USD 1,185.
MIF also made a USD 1.5 million equity investment in Banco ProCredit Honduras in August 2010 and a USD 1.5 million equity investment in enConfianza Microfinanciera of Mexico in October 2010. In 2009, ProCredit Honduras reported to MIX a gross loan portfolio (GLP) of USD 30.5 million, total assets of USD 49.6 million, 11,000 active borrowers, ROA of -12.2 percent and ROE of -34.08 percent. Its parent company, ProCredit Holding Group of Germany, which operates twenty-one banks in transition economies and developing countries in Eastern Europe, Latin America and Africa, reported total assets of EUR 4.9 billion (equivalent to USD 6 billion) and a GLP of EUR 3.3 billion (equivalent to USD 4 billion) in the same year. As of May 31, 2009, enConfianza reported an active portfolio of USD 7.18 million, 6,900 clients and a portfolio at risk ratio of 1.2 percent. enConfianza does not report to MIX.
In Peru, MIF made a USD 1.5 million debt investment in Fondo de Desarrollo Regional (Fondesurco), an MFI that was established in 1994. USD 500,000 of the debt investment is convertible to shares of Caja Rural, a rural bank to be established in 2011 by Fondesurco; Triple Jump, a microfinance investment manager based in Amsterdam; MIF; and ABACO, a Peruvian savings and credit cooperative. As of 2009, Fondesurco reported to MIX a GLP of USD 12.4 million, total assets of USD 17.5 million, ROA of 5.13 percent and ROE of 27.19 percent. In the same year, Fondesurco also reported having 9,850 active borrowers with an average loan balance of USD 1,263 per borrower.
MIF also loaned USD 2 million to IFD Sembrar Sartawi, a Bolivian MFI that was established in 1989. Sartawi reported to MIX in 2009 a GLP of USD 3.5 million, total assets of USD 4.3 million, ROA of -6.88 percent, 3,650 active borrowers and an average loan balance per borrower of USD 963.
By Julie Moksim, Research Associate
About Inter-American Development Bank (IDB): The Inter-American Development Bank (IDB) is a US-based multilateral finance institution that was established in 1959 and operates in Latin America and the Caribbean. IDB works with governments, companies and non-governmental organizations (NGOs) to provide both loans and grants to support small and medium-sized enterprises (SMEs), health and education, among other sectors. IDB also provides technical assistance and research in these areas. Its Board of Executives is elected by 48 member countries, 26 of which are located in Latin America and the Caribbean. IDB reported total assets of USD 84 billion as of December 31, 2009.
About the Multilateral Investment Fund (MIF): MIF is an autonomous fund that was founded in 1993 and is administered by the Inter-American Development Bank (IDB), a multilateral, development finance organization. The fund has recently started decentralizing its operations, giving IDB country offices more autonomy to distribute “mini-loans,” with the idea that a greater amount of smaller projects will reach more people. MIF has 38 donating member countries from Latin America, the Caribbean, North America, Europe and Asia. The United States and Japan play leading roles in the organization.
About Fondo de Desarrollo Regional (Fondesurco): Fondesurco is a microfinance institution (MFI) that was established in Peru in 1994. The organization’s mission is to improve the economic status of poor individuals living in remote villages. As of 2009, Fondesurco reported to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, a gross loan portfolio of USD 12.4 million, total assets of USD 17.5 million, return on assets of 5.13 percent and return on equity of 27.19 percent. In the same year, Fondesurco also reported having 9,850 active borrowers with an average loan balance of USD 1,263 per borrower.
About IFD Sembrar Sartawi: Sartawi is a Bolivian microfinance institution (MFI) that was established in 1989. The MFI aims to contribute to the development of urban and rural micro- and small-scale enterprises by providing financial services to underserved communities. In 2009, Sartawi reported to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, a gross loan portfolio of USD 3.5 million, total assets of USD 4.3 million, return on assets of -6.88 percent, 3,650 active borrowers and an average loan balance per borrower of USD 963.
About Solutiones de MicroFinanzas SA (Microserfin): Microserfin is a microfinance institution (MFI) based in Panama that was established in 1998. Microserfin is supervised by Panama’s Department of Finance and Ministry of Commerce and Industry. Microserfin has eight branches in Panama as of 2010 and offers loans for working capital, equipment and other improvements to businesses. Microserfin reported to the Microfinance Information Exchange (MIX) in 2009 total assets of USD 9.2 million, return on assets of 6.41 percent and return on equity of 13.46 percent. At the time Microserfin had 7,900 active borrowers with an average loan balance of USD 1,185.
About Banco ProCredit Honduras: ProCredit Honduras is a member of Germany’s ProCredit Holding Group. It is a full-service bank that was established in 2007 and offers savings for low-income households as well as loans to micro- and small-scale enterprises. ProCredit’s mission is to provide transparent banking services to the local population. In 2009, ProCredit Honduras reported to the Microfinance Information Exchange (MIX) a gross loan portfolio of USD 30.5 million, total assets of USD 49.6 million, 11,000 active borrowers, return on assets of -12.2 percent and return on equity of -34.08 percent.
About ProCredit Holding Group: Germany-based ProCredit Holding consists of twenty-one banks operating in transition economies and developing countries in Eastern Europe, Latin America and Africa. It provides credit and other banking services to small and medium-sized enterprises and lower- and middle-income savers who have limited access to formal financial services. As of 2009 it reported total assets of EUR 4.9 billion (equivalent to USD 6 billion) and a gross loan portfolio of EUR 3.3 billion (equivalent to USD 4 billion).
About enConfianza Microfinanciera: enConfianza is a microfinance institution that was founded in Mexico in 2007. As of May 31, 2009, enConfianza reported an active portfolio of USD 7.18 million, 6,900 clients and a portfolio risk ratio of 1.2 percent. enConfianza does not report to the Microfinance Information Exchange, the microfinance information clearinghouse.
[1] Data reported by Inter-American Development Bank to MicroCapital January 2011
MicroCapital.org Brief, January 12, 2011: Inter-American Development Bank’s Multilateral Investment Fund Makes Local-Currency Debt Investment Worth $1.6m to Fondo Esperanza of Chile and Haitian Credit Unions Caisse Populaire Marigot, Caisse Populaire Kotelam, Caisse Populaire Fraternite, https://www.microcapital.org/microcapital-brief-inter-american-development-banks-multilateral-investment-fund-makes-local-currency-debt-investment-worth-1-6m-to-fondo-esperanza-of-chile-and-haitian-credit-unions-caisse-popula/
MicroCapital.org Brief, January 12, 2011: Multilateral Investment Fund (MIF) and Social Entrepreneurship Program (PES) of Inter-American Development Bank (IDB) Make $3.6m Debt Investment in Cooperativa Mixta Mujeres Unidas Limitada (COMIXMUL) of Honduras, Fondo de Desarrollo Comunal (FONDECO) of Bolivia, Fundacion de Apoyo Comunitario y Social del Ecuador (FACES), Alternativa Solidaria Chiapas (ALSOL) of Mexico, https://www.microcapital.org/microcapital-brief-multilateral-investment-fund-mif-and-social-entrepreneurship-program-pes-of-inter-american-development-bank-idb-make-3-6m-debt-investment-in-cooperativa-mixta-mujeres-unidas/
MicroCapital’s Microfinance Universe Profile: Inter-American Development Bank (IDB)
MicroCapital’s Microfinance Universe Profile: Multilateral Investment Fund (MIF)
MicroCapital’s Microfinance Universe Profile: Fondo de Desarrollo Regional (Fondesurco)
MicroCapital’s Microfinance Universe Profile: IFD Sembrar Sartawi
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=IFD+Sembrar+Sartawi
MicroCapital’s Microfinance Universe Profile: Solutiones de MicroFinanzas SA (Microserfin)
MicroCapital’s Microfinance Universe Profile: Banco ProCredit Honduras
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Banco+ProCredit+Honduras
MicroCapital’s Microfinance Universe Profile: ProCredit Holding Group
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Procredit+Holding
MicroCapital’s Microfinance Universe Profile: enConfianza Microfinanciera
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=enConfianza
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