International Finance Corporation (IFC), the investment arm of the World Bank, has invested in Giros y Finanzas, a remittance distributor and loan provider based in Colombia, by purchasing bonds worth 11.5 billion Colombian pesos, the equivalent of over USD 6.2 million [1,2,3]. The investment will mainly be used to provide loans to clients who receive remittances (money transfers from friends or family in other areas or countries) through Giros y Finanzas for the purposes of small business development or home ownership [1].
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NEWS WIRE: Venezuelan Government Expands $25M in Microcredits to Colombian Refugees
Source: Relief Web
MICROCAPITAL STORY: Colombian Financial Holding Grupo Aval SA Considers Opening its Doors to the Microfinance Industry and Become the Third Financial Institution in Colombia to Specialize in Microcredit
Luis Carlos Sarmiento Angulo, President of Grupo Aval SA informed financial newspaper La Republica, he intends to provide micro-lending services to the poorest sectors of the economy. If Grupo Aval SA enters the microfinance industry, it will become the third financial institution on Colombia to specialize in microcredit. Mr. Angulo is also exploring the possibility of a joint venture with Bangladesh’s microfinance firm Grameen Bank.
MICROCAPITAL STORY: International Finance Corporation (IFC) To Lend USD 450 Million and Increase Its Support of Microfinance Institutions (MFIs) in Colombia, Peru, Ecuador
The International Finance Corporation (IFC), a member of the World Bank Group, plans to lend USD 450 million to Peru, Colombia, and Ecuador over a 12-month period through to June 2009; however, in light of the global financial crisis that that amount may increase. The IFC is also increasing its support of microfinance institutions (MFIs) because they have been deemed an efficient way to lift people from poverty.
MICROCAPITAL STORY: International Symposium on Microfinance as a Tool for Peacebuilding Discusses Rebuilding the Social and Economic Fabric in Post-Conflict Areas of Colombia through Microcredit
The International Symposium on Microfinance as a Tool for Peacebuilding discussed how microcredit could be used to rebuild the economy and promote growth in post-conflict areas of Colombia. According to this press release on the Symbiotics website, the symposium which was held in the city of Cali in Colombia was attended by nearly 2000 participants. Symbiotics is a microfinance information, consulting and services organization based in Switzerland. The symposium was sponsored by the Alvaralice Foundation, a Colombian non-profit established in 2003 and dedicated to promoting peace and economic growth in the country.
PIONEERS IN MICROFINANCE: Six Pioneers in Latin America: Álvaro Dávila of Colombia, Joseph Blatchford of the USA, Theodore C. Ning, Jr. of the USA, Mercedes Canalda de Beras-Goico of the Dominican Republic, Clara Serra de Akerman of Colombia, and José Ignacio Avalos Hernánde of Mexico
Microcapital has identified the following six microfinance “pioneers,” individuals who have made long-standing contributions to the evolution and promotion of microfinance practices and/or technology. While not all of these pioneers hail from Latin America, all have been instrumental to the development of microfinance in that region. These pioneers are: Álvaro Dávila of Colombia, Joseph Blatchford of the USA, Theodore C. Ning, Jr. of the USA, Mercedes Canalda de Beras-Goico of the Dominican Republic, Clara Serra de Akerman of Colombia, and José Ignacio Avalos Hernánde of Mexico. Below are short descriptons of the contributions of each:
MICROFINANCE EVENT: Consultative Group to Assist the Poor (CGAP) Working Group on Microinsurance, Munich Re Foundation, Fasecolda, FIDES and Colombia’s Finance Superintendant Host Microinsurance Conference 2008.
MICROINSURANCE CONFERENCE 2008
NOVEMBER 5th – 7th 2008, CONVENTION CENTER IN CARTAGENA, COLOMBIA
This event is the fourth international Microinsurance Conference jointly hosted by the CGAP Working Group on Microinsurance and the Munich Re Foundation. It will focus on the four themes of technology, capacity building, regulatory and policy issues, and innovative products and distribution channels. The conference will have plenary panel discussions on key topics addressing an interdisciplinary audience and will have in attendance over 300 experts in key areas relevant to microfinance.
MICROCAPITAL STORY: IFC makes $15.6 million Equity Investment in Grupo Mundial for Microfinance and Microinsurance in Central America and Colombia
The International Finance Corporation (IFC) recently made a USD 15.6 million equity investment in financial conglomerate Grupo Mundial Tenedora S.A. IFC now has a 9.9 percent stake in the group. The agreement has been approved by the IFC and is currently “pending signing”.
MICROFINANCE EVENT: CGAP and the Munich Re Foundation’s Fourth International Microinsurance Conference Will be Held in Cartegana Colombia to Discuss Current Challenges and Practical Innovations in Microinsurance
MICROINSURANCE CONFERENCE 2008
NOVEMBER 5-7 2008, CENTRO DE CONVENCIONES Y EXPOSICIONES IN CARTAGENA, COLOMBIA
The Microinsurance Conference 2008 will facilitate panel discussions, working groups and plenary sessions to explore the limits and opportunities of the microinsurance sector. It will focus specifically on technology, innovation, capacity building and regulation, exploring areas such as agriculture, health and risk management. Sessions will be based on practical experiences and global examples from places such as Pakistan, South Africa and Peru. The conference will be conducted in English. Spanish translation will be available.
MICROCAPITAL STORY: Munich Re Foundation and Consultative Group to Assist the Poor (CGAP) Seek Proposals by May 15 for November 2008 Microinsurance Conference in Colombia
The fourth international Microinsurance Conference will be held from November 5-7, 2008, in Cartagena, Colombia. This event is jointly hosted by the Consultative Group to Assist the Poor (CGAP) Working Group on Microinsurance and the Munich Re Foundation, with support provided by Columbian insurer Fasecolda and Federación Interamericana de Empresas de Seguros (FIDES).
MICROCAPITAL STORY: Banco Bilbao Vizcaya Argentaria (BBVA) of Spain Announces Colombia Investments, Including $13.3m to Start Leasing Operation and Planned Microcredit Bank
Spanish retail and commercial bank Banco Bilbao Vizcaya Argentaria SA (BBVA) will invest 25 billion pesos, equivalent to USD 13.3 million, into starting a Colombian leasing operation this year and plans to open the country’s first microcredit bank during Q3.
Colombia’s Fundación Mundo Mujer Popayan Receives $4.14 million loan from Global Commercial Microfinance Consortium
Fundación Mundo Mujer Popayan received a $4.14 million loan from Global Commercial Microfinance Consortium. The Colombia-based Fundación lets women access credit services such as basic loans, dwelling improvement loans, and automatic loans for repeat customers. MIX Market reported that at year end 2005 it returned 14%, on assets of $50.1 million. In addition, the seventeen year old organization’s loan portfolio totaled $45.4 million and had a debt to equity ratio of 96%.
Can a State-owned Microfinance Institution Succeed? A Look at Colombia’s New Banco de las Oportunidades
In his inaugural speech this month, Colombia’s President Alvaro Uribe outlined plans to create a new microcredit bank. Capitalized with 120 billion Colombian pesos (equivalent to $50 million) from the state-owned bank, Bancafe, the new Banco de las Oportunidades will focus on low-income groups and microlending. President Uribe promised that this will create credit opportunities for more than six million low-income Colombians.
International Finance Corporation Makes $5.4 Million Debt Investment in Microfinance Institution (MFI) Fundación Mundo Mujer in Colombia
The International Finance Corporation loaned 13.8 billion Colombian pesos (USD $5.4 million) repayable in five years to Fundación Mundo Mujer (FMM), a Colombian non-profit established in 1989. FMM reported a gross loan portfolio of $45.4 million, total assets of $50.1 million, total equity of $25.6 million, return on assets of 12.97%, and return on equity of 24.79% to the MIX Market last year. FMM, with its client base of 60% women, is an affiliate of Women’s World Banking, a global network of 24 MFIs.
International Finance Corporation Provides $50 million to Colombia-based Non-Profit Organization Fundación Social to Increase Its Microfinance Fund
The International Finance Corporation (IFC), private sector arm of the World Bank Group, is providing $50 million to Fundación Social, a non-profit organization based in Colombia, with the purpose of expanding its small and medium-sized business client base. More specifically, part of the IFC’s financing aims to help Fundación Social increase its microfinance portfolio to more than $37 million, aspiring to reach over 53,000 clients over the next five years. Information on how the money is to be invested in the Fundación Social Group is not currently available.
International Finance Corporation Continues Support of Microfinance with US$17 Million in New Investments in Fundación WWB Colombia and Morocco’s FONDEP Micro-Crédit
MicroCapital reported on the International Finance Corporation (IFC) and Citigroup’s joint investment in Uganda Microfinance Limited at the end of March. In addition to contributing to the growing trend of cooperation between microfinance institutions and commercial banks, the IFC funded two additional deals during the first quarter of 2006 totaling nearly US$17 million.
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Colombian Financial Group Banks on Microfinance Investment: Banco de Bogota Wins Auction for Megabanco and its Microcredit Portfolio with $358 Million Bid
Last week, MicroCapital reported that the liquidating Colombian bank, Megabanco was put up for auction. The sale drew attention from major banks such as Spanish bank, Santander, GE Money, and Caribbean development fund, Fundesarollo. In the end, the auction went to Grupo Aval, a Colombian financial group. Grupo Aval made the winning bid of 808 billion pesos (US$358 million) through its subsidiary (and Colombia’s second largest bank), Banco de Bogotá.
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Strong Microcredit Portfolio Makes Colombian Megabanco a Sought-After Acquisition Target
The microcredit portfolio of Megabanco has made it a hotly contested acquisition target for six large mainstream financial institutions. “Megabanco has a big base of small clients,” said Alexander Cardenas, head analyst at Bogota-based Acciones y Valores brokerage. “This makes it very attractive in the eyes of several banks that don’t cater to small savers and would be interested in capturing this type of client.”