MICROCAPITAL BRIEF: Grameen Crédit Agricole Microfinance Foundation Invests $1.68m in Palestine’s Faten, in Azerbaijan’s Viator, in Bangladesh’s Grameen Danone

The Grameen Crédit Agricole Microfinance Foundation (GCAMF), a provider of financial services to microfinance institutions (MFIs) and other social businesses, recently informed MicroCapital that it has granted loans of EUR 739,000 (USD 937,000) to Faten, a microfinance institution based in the West Bank in Palestine; EUR 702,000 (USD 890,000) to Viator, an Azerbaijani microfinance organization; and a loan, which can be converted into equity, of EUR 240,000 (USD 304,000) to Grameen Danone Foods Limited, a social business in Bangladesh that sells food products containing nutrients that are generally lacking from the regional diet.

This is the first time that GCAMF has invested in Faten, whereas it previously invested in Viator three times. Both investments are to be dispensed over a three-year period. GCAMF holds 9.5 percent of the equity of Grameen Danone Foods and has invested in the social enterprise numerous times.

As of 2014, Faten had 24,000 active borrowers with a gross loan portfolio of USD 44 million and total assets of USD 50 million. Faten does not accept deposits.

As of September 2014, Viator had 20,000 clients with a gross loan portfolio of AZN 17 million (USD 22 million). Viator does not accept deposits.

As of 2014, Grameen Danone Foods has reached 1 million beneficiaries since 2006 and has approximately 30 partners.

As of December 2012, GCAMF reported total assets of EUR 51.1 million (USD 70.3 million). Since its inception in 2008 through 2013, the foundation has invested in 21 countries through 31 microfinance institutions (MFIs), 10 social-business projects and one fund.

By Simon Pfanner – Research Associate

Sources and Additional Resources

About Palestine for Credit and Development (Faten)

Palestine for Credit and Development, which is also known by its Arabic name Faten, is a microfinance institution based in the West Bank in Palestine. The organization’s mission is to “strengthen the economic base of Palestinian microentrepreneurs, particularly women, by providing sustainable financial services suited to their needs.” Established in 1999, Faten also offers Islamic microfinance services, which employ concepts such as profit-sharing in lieu of charging interest. As of 2014, Faten had 24,000 active borrowers with a gross loan portfolio of USD 44 million and total assets of USD 50 million. Faten does not accept deposits.

About Viator

Viator began its microcredit activity in 1999 as a project of the Norwegian Humanitarian Enterprise (NHE), seeking to implement microcredit activities in the city of Ganja, Azerbaijan. Viator registered with the Ministry of Justice in Azerbaijan following its separation from NHE in 2002. Viator’s mission is to provide economic help to enable poor people to increase their income through ‘sustainable’ microfinance services. As of September 2014, Viator had 20,000 clients with a gross loan portfolio of AZN 17 million (USD 22 million). Viator does not accept deposits.

About Grameen Danone Foods

Grameen Danone Foods was established in 2006 as a social business to sell various food products that are fortified with nutrients commonly missing from the regional diet. Its main product is: ‘Shokti Doi’ yoghurt, which contains added iron and other micronutrients. The organization was founded as a partnership between French food producer Danone and the Grameen Bank. As of 2014, Grameen Danone Foods has reached 1 million beneficiaries since 2006 and has approximately 30 partners.

About Grameen Credit Agricole Microfinance Foundation (GCAMF)

The Grameen Credit Agricole Microfinance Foundation (GCAMF) provides financial services to microfinance institutions (MFIs) and other social businesses. GCAMF was founded in Luxembourg in 2008 by Crédit Agricole SA, a French retail bank, and Grameen Trust, a non-profit microfinance organization affiliated with the Grameen Bank of Bangladesh. In financing microfinance institutions (MFIs), GCAMF focuses on those that prioritize rural development, transparency, consumer protection and serving women. The foundation has been active in Azerbaijan, Bangladesh, Benin, Burkina Faso, Cambodia, Cameroon, Democratic Republic of Congo, France, Indonesia, Kenya, Kosovo, Madagascar, Mali, Palestine, Philippines, Senegal, Sri Lanka, Tajikistan, Timor Leste, Togo and Zambia. As of December 2012, GCAMF reported total assets of EUR 51.1 million (USD 70.3 million). Since its inception in 2008 through 2013, the foundation has invested in 21 countries through 31 microfinance institutions (MFIs), 10 social-business projects and one fund.

Sources and additional information

[1] Information provided directly to MicroCapital by GCAMF

MicroCapital, July 14, 2014, Grameen Credit Agricole Microfinance Foundation (GCAMF) Invests $500k in Equity to Acquire 8% of Kenyan Micro insurer Agriculture and Risk Enterprise (ACRE), Loans $334k to Ecumenical Church Loan Fund (ECLOF) for Technical Assistance

MicroCapital, July 14, 2014, Grameen Credit Agricole Microfinance Foundation (GCAMF) Loans $3m to Indonesia’s Mitra Bisnis Keluarga Ventura (MBK), $1m to Azerbaijan’s Finance for Development (FinDev)

MicroCapital, July 10, 2014, Grameen Credit Agricole Microfinance Foundation (GCAMF) Loans $200k to Mec Fadec of Senegal, $680k to TIAVO of Madagascar

MicroCapital Universe Profile: Palestine for Credit and Development (Faten)

MicroCapital Universe Profile: Viator

MicroCapital Universe Profile: Grameen Danone Foods

MicroCapital Universe Profile: Grameen Credit Agricole Microfinance Foundation (GCAMF)

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