Symbiotics, a Switzerland-based impact investing platform, recently agreed to issue a 4.5-year, senior, unsecured loan of COP 35.8 billion (USD 10.5 million) to La Hipotecaria Compañía de Financiamiento (HCF), a Panama-based mortgage lender, from the proceeds of a social bond Symbiotics is launching for this purpose. The goal is to increase access to finance for affordable housing in Colombia via the local subsidiary of HCF. Symbiotics is issuing the bond through its Micro, Small & Medium Enterprises Bonds SA platform for listing on the Luxembourg Green Exchange. The bond meets the Green Bond Principles of the International Capital Market Association.
Symbiotics, founded in 2004, focuses on financing small and medium-sized enterprises and low- and middle-income households. It provides for-profit investment intermediary and business services to investors in and practitioners of micro-, small and medium-sized enterprise development. As of 2019, the company reported a direct investment portfolio of USD 2.3 billion, with its local financing intermediaries funding 1.6 million small businesses and households at “the base of the pyramid” in 77 emerging markets.
Founded in 1997, HCF lends to clients with monthly incomes of USD 400 to USD 1,500. The firm launched operations in El Salvador and Colombia in 2010 and 2011, respectively. Across these three countries, HCF originates approximately USD 11.5 million in mortgages per month.
By Eha Joshi, Research Associate
Sources and Additional Resources
Direct contact with Symbiotics
Symbiotics press release
https://symbioticsgroup.com/news/symbiotics-launches-cop-358-billion-usd-105-million-social-bond-with-la-hipotecaria-colombia
La Hipotecaria Colombia homepage
https://www.lahipotecaria.com/colombia
La Hipotecaria company profile
https://www.lahipotecaria.com/globalinvestors/company-profile
Previous MicroCapital article on Symbiotics
https://www.microcapital.org/microcapital-brief-symbiotics-launches-6-7m-bond-for-samunnati-provider-of-microfinance-market-access-technology-to-agricultural-sector-in-india
Luxembourg Green Exchange website
https://www.bourse.lu/green
Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
Similar Posts:
- MICROCAPITAL BRIEF: Tunisie Leasing and Factoring Borrows $7.5m from BII-Symbiotics Green Bond Program for SMEs in Tunisia
- MICROCAPITAL BRIEF: Khan Bank Raises $10m in Bond Sale to Vision Microfinance Dual Return Fund to Support Women’s SMEs in Mongolia
- MICROCAPITAL BRIEF: Money Fellows of Egypt Borrowing $2.2m from Symbiotics to Support Digital ROSCAs
- MICROCAPITAL BRIEF: African Development Bank (AfDB) Disbursing $1.6m for Green Finance in Benin, Côte d’Ivoire
- MICROFINANCE EVENT: 2nd Annual Environmental Social Governance (ESG) Africa Conference; October 4-5, 2023; Sandton, South Africa
