BlueOrchard Finance, a Swiss asset management company, recently invested USD 6.5 million from its Dexia MicroCredit Fund (DMCF) in three Latin American microfinance institutions (MFIs): Forjadores of Mexico, Women’s World Banking (WWB) Popayan of Colombia and D-Miro of Ecuador.
Forjadores will receive MXN 8.6 million (USD 687,000) in local currency, WWB-Popayan will receive COP 9.2 billion (USD 4.8 million) in local currency and D-Miro will receive USD 1 million.
According to the MIX Market, the microfinance information clearinghouse, as of 2008, Forjadores had total assets of USD 4.5 million, 16,000 active clients, a return on assets (ROA) of -39 percent and a return on equity (ROE) of -175 percent. As of 2009, WWB-Popayan had 30 branches throughout Colombia, 293,000 active clients and an outstanding portfolio of USD 204 million. As of 2009, D-Miro had total assets of USD 25.9 million, 36,000 active borrowers, a return on assets (ROA) of -2.88 percent and a return on equity of -11.79 percent.
By Stefanie Rubin, Research Associate
About BlueOrchard Finance:
The BlueOrchard Private Equity Fund was established in 2007 to invest in the microfinance industry. Approximately 80 percent of funding is from European and US institutional investors, and 20 percent is from individual investors. The main focus of the fund is to work with leading regulated, fast-growing microfinance banks through direct participations in their capital or through the creation of holding companies.
About Dexia MicroCredit Fund
The Dexia MicroCredit Fund (DMCF) invests in debt instruments issued by microfinance institutions (MFIs), which are retail micro-lenders. DMCF finances 88 institutions in 33 developing countries in Africa, Asia, Eastern and Central Europe and Latin America. DMCF is managed by BlueOrchard Finance SA.
Additional Resources:
Source Article: E-mail correspondence with Microcapital, June 11, 2010.
MicroCapital Universe: BlueOrchard Finance: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Blu…
MicrCapital Universe: Dexia Micro Credit Fund: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Dexia+Microcredit+Fund+(DMCF)
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