MICROCAPITAL BRIEF: Inter-American Development Bank (IDB) Provides $5m Loan for Fund Sponsored by Global Partnerships to Invest in 20 Microfinance Institutions (MFIs) in Latin America

The Inter-American Development Bank (IDB), which provides multilateral financing in Latin America and the Caribbean, will provide a USD 5 million loan to a fund that is managed by Global Partnerships, a non-governmental organization (NGO) that supports microfinance institutions (MFIs) in Latin America [1,2,3]. The fund, which totals USD 25 million, will be used to invest in 20 MFIs in at least 12 countries [1]. The other USD 20 million will be provided by other, unspecified private institutions and investors [1]. In turn, the MFIs will lend to microentrepreneurs, mostly in the Central American and Andean regions [1]. Additionally, the MFIs will use the investments to provide the microentrepreneurs with technical assistance, “innovative technologies in areas such as loan management, insurance, evaluation and foreign currency hedging,” and social services such as protection of health [1].

By Christopher Maggio, Research Assistant

About:
Inter-American Development Bank (IDB)

Description:
The Inter-American Development Bank (IDB) was established in 1959 and provides multilateral financing in Latin America and the Caribbean. The bank works with governments, companies and non-governmental organizations (NGOs) to provide both loans and grants to support small and medium enterprises (SMEs), health, and education, among other sectors. It also provides technical assistance and research in these areas. Its Board of Executives are elected by 48 member countries, 26 of which are from Latin America and the Caribbean.

The IDB does not report to the MIX Market, the microfinance information clearinghouse.

Organization’s Website:
http://www.iadb.org/index.cfm?lang=en

Just the Facts:
-Country of Incorporation: United States
-Year Founded: 1959
-Legal Status: Multilateral Development Bank
-Total Assets: USD 6.3 billion (as of 31/Dec/08)
-Ordinary Capital: USD 101 billion (as of 31/Dec/08)
-Area of Operation: Latin America and the Caribbean
-Participant(s)/Backer(s)/Investor(s): 48 member countries, 26 from Latin America and the Caribbean
-President: Louis Alberto Moreno

Contact Information:
By Mail:
1300 New York Avenue, N.W.
Washington, D.C. 20577
United States of America
By Telephone:
+1 202 623-1000
By fax:
+1 202 623-3096

Additional Resources
IDB Basic Information: http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=2095587

MICROCAPITAL.ORG STORY: Inter-American Development Bank (IDB) Approves USD 7 Million Loan for Salvadorian Housing Fund Fondo Nacional de Vivienda Popular’s (FONAVIPO): https://www.microcapital.org/microcapitalorg-story-inter-american-development-bank-idb-approves-usd-7-million-loan-for-salvadorian-housing-fund-fondo-nacional-de-vivienda-popular%E2%80%99s-fonavipo/

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
Investment Horizon: 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

Bibliography
[1] e Gov Monitor article entitled ‘Microfinance Institutions in Latin America To Deliver Innovative Social Investments With IDB Aid’: http://www.egovmonitor.com/node/32103
[2] Inter-American Development Bank (IDB): http://www.iadb.org/?lang=en
[3] Global Partnerships: http://www.globalpartnerships.org/

Source Article: e Gov Monitor article entitled ‘Microfinance Institutions in Latin America To Deliver Innovative Social Investments With IDB Aid’: http://www.egovmonitor.com/node/32103

Similar Posts: