Global Partnerships, a non-governmental organization (NGO) that supports microfinance institutions (MFIs) in Latin America, has announced its expansion to Mexico through a USD 500,000 loan made to Fundación Realidad (FRAC), a nonprofit MFI located in Mexico.Though the loan was made in October of 2009, the news was not released until February 11, 2010. GP has stated that it chose to provide a loan to FRAC because of the MFI’s commitment to underserved markets and its relatively affordable microloans. According to the press release, FRAC works in some of the poorest areas of Mexico, provides 82 percent of its loans to women, 87 percent to rural clients, and offers an interest rate that is 12 percentage points lower than the Mexican microfinance industry median.
By Christopher Maggio, Research Assistant
About
Global Partnerships Microfinance Fund
Overview
Global Partnerships Microfinance Fund is a microfinance investment vehicle, which mobilizes capital for microfinance institutions (MFIs).
Description
-Global Partnerships Microfinance Fund is comprised of a series of three funds (Global Partnerships Microfinance Fund 2005, Global Partnerships Microfinance Fund 2006, Global Partnerships Microfinance Fund 2008), which invest in microfinance institutions (MFIs), which are retail micro-lenders.
-Global Partnerships Microfinance Fund 2005 (MFF 2005) is a USD 2.0 million fund composed of USD 200,000 in philanthropic capital as equity leveraged 10 times by USD 1.8 million in private capital from qualified individual and institutional investors. GP MFF 2005 is currently invested in eight partners in four Latin American countries.
-Global Partnerships Microfinance Fund 2006 (MFF 2006) is a USD 8.5 million fund composed of USD 255,000 in philanthropic capital as equity leveraged at a ratio of 32 to 1 by USD 8.2 million in socially motivated debt capital from qualified individual and institutional investors. The fund closed in March 2007 and was disbursed to 14 qualified MFI partners in six countries.
-Global Partnerships Microfinance Fund 2008 (MFF 2008) is a USD 20 million fund composed of USD 1.5 million in philanthropic capital as equity leveraged by USD 18.5 million in socially motivated investment of debt and equity capital from qualified individual and institutional investors. The fund closed in November 2008 and will expand all three Global Partnerships’ Funds support to a total of 30 partners in eight countries.
-The three funds select MFIs in Latin America that have business models deemed sustainable and are committed to social impact. The three Global Partnerships Microfinance Funds are sub-funds of Global Partnerships.
Microfinance Information Exchange (MIX) Profile:
http://mixmarket.org/funders/global-partnerships-microfinance-fund
Organization’s Website:
http://www.globalpartnerships.org/
Just the Facts (three funds in aggregate)
-Country of Incorporation: United States
-Legal Status: 501(c)(3) nonprofit
-Fund Assets (as of day/month/year): USD 15.4 million (as of 30/June/2009)
-Assets allocated to MFI investment (as of day/month/year): USD 7.9 million (as of 30/June/2009)
-Number of MFI investments (as of day/month/year): 29 (as of 30/June/2009)
-Area of Operation: Latin America
-Participant(s)/Backer(s)/Investor(s): Global Partnerships
-Fund Currency: USD
-Fund Manager: Global Partnerships
Contact Information
United States office:
Global Partnerships
909 NE Boat St, Suite 200
Seattle, WA 98105
Phone: +1 206 652 8773
Fax: +1 206 264 3009
email: info@globalpartnerships.org
About: Fundación Realidad (FRAC)
Description:
Fundación Realidad (FRAC) is a nonprofit microfinance institution (MFI) located in Mexico. It was founded in 1997 and offers loans in rural and semi-urban areas of Mexico. Its partners include World Vision International, a charitable organization with various global offices, and KIVA, a peer-to-peer microfinance website.
Microfinance Information Exchange (MIX) Profile:
http://www.mixmarket.org/mfi/frac
Organization’s Website:
http://www.fundacionrealidad.org.mx/inicio.php
Just the Facts:
-Country of Incorporation: Mexico
-Year Founded: 1997
-Total Assets: USD 4.8 million (as of 31/Dec/08)
-Gross Loan Portfolio: USD 4.3 million (as of 31/Dec/08)
-Number of Active Borrowers: 12,604 (as of 31/Dec/08)
-Return on Assets: 0.62%
-Return on Equity: 1.53%
-Participant(s)/Backer(s)/Investor(s): KIVA, World Vision International
-Products: Loans
-Main Funding Sources: Loans
-Executive Director: Marco Antonio Alvarado Garcia
Contact Information:
Address:
Bahia de Todos los Santos n° 162, Col. Verónica Anzures
Miguel Hidalgo
Mexico DF
11300
Mexico
Phone: +52 1500 2298
Fax: + 52 1500 2291
Email: fundacion_realidad@wvi.org
Additional Resources:
PR Web article entitled ‘Global Partnerships Expands Microfinance Support to Mexico’: http://www.prweb.com/releases/2010/02/prweb3600404.htm
Fundación Realidad (FRAC) on KIVA.org: http://www.kiva.org/partners/130
MicroCapital’s Microfinance Universe profile: Global Partnerships Microfinance Fund
MicroCapital’s Microfinance Universe profile: Fundación Realidad (FRAC)
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