MICROCAPITAL BRIEF: Developpement international Desjardins, Desjardins Fund for Inclusive Finance Loan $1.5m to Fundacion para el Desarollo Integral Espoir of Ecuador

Fundacion para el Desarollo Integral Espoir, a nongovernmental organization (NGO) offering economic and social development services to poor female entrepreneurs in Ecuador, recently borrowed USD 1.5 million jointly from Developpement international Desjardins (DID) and Desjardins Fund for Inclusive Finance, two members of Desjardins Group, a cooperative financial institution based in Canada. DID and Desjardins Group established the Desjardins Fund for Inclusive Finance to support microfinance initiatives in developing countries. With this funding, Espoir expects to expand its customer outreach and “gain leverage enabling it to approach new investment partners” [1].

The Desjardins Fund for Inclusive Finance, an investment fund established in 2011 by Desjardins Group, reports initial funding of CAD 5 million (USD 5.13 million) with plans to reach CAD 10 million (USD 10.3 million) over 10 years. As of 2011, Developpement international Desjardins reports total assets of CAD 29.2 million (USD 30 million), return on assets (ROA) of 5.5 percent and return on equity (ROE) of 7.27 percent. As of the same period, Espoir reports total assets of USD 47.9 million, a gross loan portfolio of USD 43.7 million, 71,583 borrowers, ROA of 4.05 percent and ROE of 28.8 percent. Espoir does not accept deposits.

By Sarah Benali, Research Associate

About Fundacion para el Desarollo Integral Espoir
Fundacion para el Desarollo Integral Espoir, a nongovernmental organization (NGO) that was established in Ecuador in 1992, offers economic and social development services to poor female entrepreneurs including microcredit, health and financial education. As of 2011, Espoir reported to the Microfinance Information Exchange (MIX), the US-based data provider, total assets of USD 47.9 million, a gross loan portfolio of USD 43.7 million, 71,583 borrowers, return on assets (ROA) of 4.05 percent, return on equity (ROE) of 28.8 percent and no deposits.

About Desjardins Fund for Inclusive Finance
The Desjardins Fund for Inclusive Finance, an investment fund established in 2011 by the Desjardins Group of Canada, is intended to assist in the development of microfinance institutions. Initial funding is reported at CAD 5 million (USD 5.13 million) and is expected to reach CAD 10 million (USD 10.3 million) by 2021.

About Developpement international Desjardins
A subsidiary of cooperative institution Desjardins Group, Developpement International Desjardins (DID) is a Canadian corporation that specializes in providing technical support and investment for development finance in emerging countries. As of 2011, DID is assisting projects in approximately twenty nations in Africa, Latin America, the Caribbean, Asia and Central and Eastern Europe. As of the same period, DID reports total assets of CAD 29.2 million (USD 30 million), return on assets of 5.5 percent and return on equity of 7.27 percent.

About Desjardins Group
Desjardins Group is a cooperative financial group based in Canada that serves 5.8 million clients with services such as retail banking, wealth management, securities brokerage, venture capital and asset management. As of June 2012, Desjardins Group reports total assets of CAD 190 billion (USD 195 billion), a gross loan portfolio of CAD 125 billion (USD 128 billion), deposits of CAD 123 billion (USD 126 billion), return on assets of 0.7 percent and return on equity of 9.64 percent. Members of the group include Developpement international Desjardins (DID) and Desjardins Fund for Inclusive Finance.

Sources and Additional Resources:

[1]Developpement international Desjardins (DID) Press Release: “New Investment by the Desjardins Fund for Inclusive Finance”, http://www.did.qc.ca/en/news-and-videos/press-releases/new-investment-the-desjardins-fund-for-44/

MicroCapital Universe Profile: Developpement international Desjardins http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Developpement+International+Desjardins+%28DID%29

MicroCapital Universe Profile: Desjardins Fund for Inclusive Finance         http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Desjardins+Fund+for+Inclusive+Finance

MicroCapital Universe Profile: Desjardins Group
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Desjardins+Group

MicroCapital Universe Profile: Fundación Espoir                             http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fundacion+Espoir

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