CreSud SpA, a socially responsible Italian private investment company, has reported three microfinance investments in the past three months to the CGAP Microfinance Dealbook, a monthly report on microfinance capital market transactions. In February 2009, CreSud SpA granted a loan of USD 250,000 to Comixmul of Honduras. In March 2009, CreSud SpA loaned USD 250,000 to Unidad Microfinanza Arariwa (UMF Arariwa) of Peru. In April 2009, CreSud SpA closed an equity investment of USD 400,000 in Proempresa Edpyme of Peru. CreSud SpA invests in companies with a minimum portfolio of USD 500,000 and three years of operational history. As of 2006, 88 percent of CreSud SpA’s investments were in Latin America and the Caribbean.
Comixmul, a cooperative based in Honduras, offers microloans and training to mostly female entrepreneurs. In a 2008 annual report, Comixmul reported equivalent total income and total expenses of USD 3.6 million (p14). In a balance sheet, total assets were listed as USD 15.9 million and total liabilities as USD 12.4 million (p15). The report also noted that the loan portfolio grew 31 percent from the previous year to USD 12.2 million (p10). Comixmul was founded in 1986 by a group of 12 women and gained legal status in 1991. MicroCapital has reported on previous loans received by Comixmul, including a USD 1 million loan from Oikocredit in May 2008 and a USD 300,000 loan by the responsAbility Global Microfinance Fund (rAGMF) in June 2008.
UMF Arariwa is part of the umbrella organization Asociacion Arariwa, a non governmental organization based in Peru. UMF Arariwa operates in the Peruvian regions of Urubamba, Cusco, and Anta, among others. Asociacion Arariwa is also active in promoting education and health. According to Kiva, the online lending platform, UMF Arariwa supports 14,000 borrowers, 72 percent of whom are women. UMF Arariwa’s own website, last updated in 2003, reports that the organization supports 227 communal banks that consist of 20-30 members each. According to the MIX, the microfinance information database, UMF Arariwa holds a gross loan portfolio of USD 3.9 million, with a debt to equity ratio of 67.98 percent and a 2.55 percent return on assets. The MIX reports that 12,726 active borrowers are served by the organization.
Proempresa Edpyme is a microfinance institution (MFI) founded in 1997 by the IDESI Network. THE IDESI Network consists of 12 regional associations in Peru that offer a variety of business services, including legal services and research, to microenterprises. According to the MIX, Proempresa Edpyme holds a USD 29.5 million gross loan portfolio and serves 30,360 active borrowers. The debt to equity ratio was reported as 498.56 percent and the return on assets reported as 2.04 percent. Shareholders in Proempresa Edpyme include Oikocredit, IDESI of Peru, and Incofin of Belgium. Proempresa Edpyme offers loans to businesses for up to 48 months and consumer loans for up to 36 months. Loan amounts range from USD 100 to USD 84,000. For a list of agencies where loans are dispersed, see this page. MicroCapital recently reported on a March 2009 loan of USD 1 million to Proempresa Edpyme by rAGMF.
CreSud SpA was founded in 1999 and is owned by various microfinance and fair trade organizations that include CTM Altromercato, Microcredit Coop, and CIPSI. CTM Altomercato is Italy’s largest fair trade organization and consists of 120 associations and cooperatives that manage 353 fair trade shops, mostly concentrated in Italy. Microcredit Coop is a consulting service for cooperatives and CIPSI is an association of 40 non-governmental organizations (NGOs) that focus on international development. CreSud SpA helped found the European Microfinance Platform, a network of 100 microfinance organizations based in Luxembourg, and holds a seat in Italy’s Permanent Committee on MicroCredit. The committee became permanent in 2005.
The MIX reports that CreSud SpA held total fund assets of USD 4.7 million at the end of 2007. Of this amount, the assets allocated to microfinance investments totalled USD 3.7 million. CreSud SpA’s long term loans range from USD 134,000 to USD 537,000 with an annual interest rate of 9 percent for loans in EUR to 9.5 percent for loans in USD. Revolving loans range from USD 67,000 to USD 268,000. The duration of loans is up to 48 months. CreSud SpA raises funds through bonds, most recently issued in December 2008 in the amount of USD 604,000. These bonds expire at the end of 2011 and carry a gross interest rate of 3.25 percent.
By Goda Thangada, Research Assistant
Additional Resources:
MIX Market: Asociacion Arariwa
European Microfinance Platform
Italian Permanent Committee for Microcredit
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