MICROCAPITAL STORY: ResponsAbility Global Microfinance Fund of Switzerland Lends over $1m to Peru-based Edpymes Proempresa

The Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse, reported responsAbility Global Microfinance Fund, a Luxembourg-based fund, has granted a loan of USD 1.02 million to Edpymes Proempresa, a Latin America microfinance institution (MFI).

The responsAbility Global Microfinance Fund is investment instrument that allows investors the opportunity to invest in institutions that provide financial returns, social benefits and contribution towards development policy goals. The fund’s primary focus is microfinance. As of January 2007, the fund had total assets of USD 96.1 million of which USD 89.5 million was allocated to microfinance. The fund is managed by responsAbility, a Zurich-based provider of social investment advisory services. responsAbility focuses on developing countries and investments that generate social benefits. responsAbility aims to become the Swiss platform for investment in microfinance.

Edpymes Proempresa, based in Lima, Peru, was founded in 1998. According to its most recent “financial data” on the MIX, the MFI had total assets of equivalent USD 22.3 million which consisted of a gross loan portfolio of equivalent USD 17.7 million. Return on assets for the MFI was 2.05% and it had return on equity of 9.58%. At the end of 2006, the MFI serviced 19,602 active borrowers of which approximately half are women. Edpymes Proempresa clients are micro-entrepreneurs, particularly businesses in handicrafts, medicinal plants, agro-industry, ceramics, clothing and textiles. The MFI grants loans ranging from USD 500 to USD 10,000 with terms of 3 months to 24 months.

Additional Resources:

CGAP: “List of Recent Transactions”

MIX Market: “EDPYME PROEMPRESA”

responsAbility: http://www.responsability.ch/en/

MicroCapital.org article, September 25, 2007: “MICROCAPITAL STORY: ResponsAbility Global Microfinance Fund of Switzerland Lends over USD 2.1 Million to Fondesurco, Fundación ESPOIR and LOKMicro”

MicroCapital.org article, September 3, 2007: “MICROCAPITAL STORY: ResponsAbility Global Microfinance Fund of Switzerland Loans over USD 1.1 Million to Unión de Crédito Interestatal Chiapas (Unicreich) of Mexico and PRESTANIC of Nicaragua”

MicroCapital.org article, April 6, 2007: “MICROCAPITAL STORY: ResponsAbility Lends USD 3.9 Million to 7 Latin American Microbanks: FDL, ADMIC, PRESTANIC, ProCredit Ecuador, AMC-SV, Fundación Campo, Corporación de Productores Café.”

MicroCapital.org article, November 3, 2006: “MICROCAPITAL STORY: The ResponsAbility Global Microfinance Fund Distributes Loans to Various Microfinance Institutions in Latin America”