MICROCAPITAL BRIEF: Global Partnerships Social Investment Fund (SIF) 2010 Loans $700k to FONDECO of Bolivia, Enlace of El Salvador

Global Partnerships (GP), a microfinance organization based in the United States, recently reported to MicroCapital that it made debt investments totaling USD 700,000 in microfinance institutions (MFIs) in Bolivia and El Salvador [1].

In Bolivia, Fondo de Desarrollo Comunal (FONDECO), an MFI that was established in 1995, received a USD 500,000 loan from the Global Partnerships Social Investment Fund (SIF) 2010, a microfinance investment vehicle managed by GP [1]. As of 2009, FONDECO reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 12.5 million, a gross loan portfolio of USD 10 million, approximately 11,500 borrowers, return on assets (ROA) of 2.31 percent and return on equity (ROE) of 8.31 percent.

Global Partnerships SIF 2010 further loaned USD 200,000 to Enlace, an MFI in El Salvador that was established in 1998 [1]. As of 2009, Enlace reported to MIX total assets of USD 7.1 million, a gross loan portfolio of USD 6.6 million, approximately 23,700 borrowers, ROA of 2.33 percent and ROE of 4.58 percent.

By Medha Ravi, Research Associate

About Global Partnerships (GP): Global Partnerships (GP) raises capital through a microfinance investment fund strategy. The company has staff based in Seattle, in the US state of Washington and Managua, Nicaragua. As of June 30, 2010, GP invests in 27 microfinance institutions that serve a total of 845,000 borrowers in seven Latin American countries.

About Global Partnerships Social Investment Fund (2010): Social Investment Fund 2010 (SIF 2010) is a USD 20 million, five-year debt fund created by Global Partnerships (GP), a microfinance organization based in the United States, that aims to provide affordable loan capital to up to 20 microfinance institutions in Latin America. The goals of the fund are to increase access to microcredit for people living in poverty in Latin America; to support the growth and development of microfinance institutions (MFIs) that are achieving exceptional levels of social impact; and to return capital to investors with fixed-income returns. Forty-one investors are participating in SIF 2010 including the Inter-American Development Bank (IDB), Overseas Private Investment Corporation (OPIC), the Linked Foundation, the Perls Foundation, the Brown Family Private Foundation, Seattle University, faith-based institutions such as the Mercy Partnership Fund and 23 accredited individual investors.

About Fondo de Desarrollo Comunal (FONDECO): FONDECO is a nongovernmental organization that was established in 1995 in Bolivia. FONDECO provides individual and group loans in rural communities in Bolivia. Its clients consist primarily of small producers, microentrepreneurs and rural traders; and loan durations are typically between two and five years. In 2009, FONDECO reported to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, total assets of USD 12.5 million, a gross loan portfolio of USD 10 million, approximately 11,500 borrowers, return on assets (ROA) of 2.31 percent and return on equity (ROE) of 8.31 percent.

About Enlace: Enlace is a microfinance organization that was established in El Salvador in 1998. The organization’s mission is to improve the quality of life of poor people through access to financial services. As of 2009, Enlace reported to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, total assets of USD 7.1 million, a gross loan portfolio of USD 6.6 million, approximately 23,700 borrowers, return on assets (ROA) of 2.33 percent and return on equity (ROE) of 4.58 percent.

Sources and Additional Resources:

[1] Information provided to MicroCapital by Global Partnerships

MicroCapital.org story, April 11, 2011, “MICROCAPITAL BRIEF: Global Partnerships (GP) Microfinance Funds Loan $1m to Enlace of El Salvador, Cafe y Desarrollo of Mexico”, https://www.microcapital.org/microcapital-brief-global-partnerships-gp-microfinance-funds-loan-1m-to-enlace-of-el-salvador-cafe-y-desarrollo-of-mexico/

MicroCapital.org story, April 7, 2011, “MICROCAPITAL BRIEF: Global Partnerships Social Investment Fund (SIF) 2010 Loans $3m to Sartawi, FONDECO of Bolivia and Espoir of Ecuador for Microfinance”, https://www.microcapital.org/microcapital-brief-global-partnerships-social-investment-fund-sif-2010-loans-3m-to-sartawi-fondeco-of-bolivia-and-espoir-of-ecuador-for-microfinance/

MicroCapital’s Microfinance Universe Profile: Global Partnerships (GP), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Global+Partnerships

MicroCapital’s Microfinance Universe Profile: Global Partnerships Social Investment Fund 2010, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Global+Partnerships+Social+Investment+Fund+2010

MicroCapital’s Microfinance Universe Profile: Fondo de Desarrollo Comunal (FONDECO),
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fon…

MicroCapital’s Microfinance Universe Profile: Enlace, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Enlace

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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