The Inter-American Development Bank (IDB), a US-based, multilateral, development finance organization, recently announced that it has syndicated a USD 9 million loan to Cooperativa de Ahorro y Crédito (COAC) Jardín Azuayo, a savings and credit cooperative in Ecuador. USD 3 million of the loan has been funded by IDB, the lead arranger in the transaction, through its “Opportunities for the Majority” initiative. The remaining USD 6 million was funded by the following three impact investors: Oikocredit, a Dutch cooperative investment fund that invested USD 3 million [2]; Incofin, a Belgian investment management firm that invested USD 2 million [3]; and Calvert Foundation, a private US foundation that invested the remaining USD 1 million [4].
The loan will fund Jardin Azuayo’s “Credits for Community Development project”, which will in turn fund local organizations and municipalities to invest in “social infrastructure” such as renovation of public schools, road construction, installing water treatment systems and development of marketplaces and parks [1].
As of 2010, Jardin Azuayo reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 181 million, a gross loan portfolio of USD 155 million, approximately 44,300 borrowers, return on assets (ROA) of 2.7 percent and return on equity (ROE) of 19.1 percent.
By Medha Ravi, Research Associate
About the 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, education and other sectors. IDB also provides technical assistance and research in these areas. Its Board of Executives is elected by its 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 Cooperativa de Ahorro y Crédito (COAC) Jardín Azuayo:
Established in 1996 in Ecuador, Cooperativa de Ahorro y Crédito (COAC) Jardín Azuayo is a savings and credit cooperative. Its services include voluntary savings, insurance, fund transfers and loans for individuals and local infrastructure projects. As of 2010, Jardin Azuayo reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 181 million, a gross loan portfolio of USD 155 million, approximately 44,300 borrowers, return on assets (ROA) of 2.7 percent and return on equity (ROE) of 19.1 percent.
Source and Resources:
[1] Inter-American Development Bank (IDB) press release, “IDB, Oikocredit, Incofin and Calvert Foundation Back Credit Cooperative in Ecuador”, http://www.iadb.org/en/news/news-releases/2011-02-15/idb-investors-back-community-driven-project-in-ecuador,9132.html
[2] MicroCapital’s Microfinance Universe Profile: Oikocredit, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Oikocredit
[3] MicroCapital’s Microfinance Universe Profile: Incofin, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+Investment+Management+%28Incofin+IM%29
[4] MicroCapital’s Microfinance Universe Profile: Calvert Foundation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Calvert+Foundation
MicroCapital.org story, January 12, 2011, “MICROCAPITAL BRIEF: Inter-American Development Bank (IDB) Makes $4m in Equity Investments in Solutiones de MicroFinanzas SA (Microserfin) of Panama, Banco ProCredit Honduras, enConfianza Microfinanciera of Mexico and $3.5m in Loans to Fondo de Desarrollo Regional (Fondesurco) of Peru, IFD Sembrar Sartawi of Bolivia”, https://www.microcapital.org/microcapital-brief-inter-american-development-bank-idb-makes-4m-in-equity-investments-in-solutiones-de-microfinanzas-sa-microserfin-of-panama-banco-procredit-honduras-enconfianza-microfinancie-2/
MicroCapital.org story, January 12, 2011, “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 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: The Inter-American Development Bank (IDB), https://www.microcapital.org/microfinanceuniverse/tiki-editpage.php?page=Inter-American+Development+Bank+%28IDB%29&hdr=2
MicroCapital’s Microfinance Universe Profile: Cooperativa de Ahorro y Crédito (COAC) Jardín Azuayo, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Cooperativa+de+Ahorro+y+Cr%C3%A9dito+%28COAC%29+Jard%C3%ADn+Azuayo
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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