MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $10m to Banco de Ahorro y Crédito ADOPEM for On-lending to Microentrepreneurs in Dominican Republic

The International Finance Corporation (IFC), a member of the US-based World Bank Group that aims to increase economic growth in developing countries, recently announced that it will loan DOP 450 million (approximately USD 10 million) to Banco de Ahorro y Crédito ADOPEM, a microfinance institution (MFI) in the Dominican Republic that was formerly known as Asociación Dominicana para el Desarrollo de la Mujer. The loan is expected to enable ADOPEM to provide approximately 140,000 microloans to low-income microentrepreneurs in the country by 2022. It is anticipated that 70 percent of the new loans will be disbursed to women entrepreneurs with the aim of facilitating expansion of their business ventures.

Mercedes Canalda de Beras-Goico, the executive president of ADOPEM, said that “almost 70 percent of our clients have access to financing exclusively through Banco ADOPEM, and the bank’s average loan size of USD 480 is the lowest among Dominican microfinance institutions”[1].

As of year-end 2014, ADOPEM reported total assets of USD 120.4 million, a gross loan portfolio of USD 95.8 million, approximately 196,600 borrowers and deposits of USD 50.5 million from 310,000 clients. It also reported return on assets of 5.9 percent and return on equity of 23.8 percent. IFC was a shareholder in ADOPEM between 2007 and 2015. It is now majority-held by Madrid-based Fundacion Microfinanzas BBVA. As of 2014, the IFC annual financial statement reports total assets of USD 84.1 billion, net income of USD 1.48 billion and return on assets of 1.8 percent. In the Dominican Republic, IFC’s strategy focuses on encouraging economic growth and empowering low-income populations. IFC’s investment portfolio in the country totals at USD 198 million.

By Alíz Crowley, Research Associate

About Banco de Ahorro y Crédito ADOPEM

Established in 1982, Banco de Ahorro y Crédito ADOPEM (formerly known as Asociación Dominicana para el Desarrollo de la Mujer) (ADOPEM) is a microfinance institution (MFI) based in the Dominican Republic. It provides financial products and services including microloans, savings and insurance products. It also provides non-financial services such as enterprise skill development and financial literacy education. As of year-end 2014, ADOPEM reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 120.4 million, a gross loan portfolio of USD 95.8 million, approximately 196,600 borrowers and deposits of USD 50.5 million from 310,000 clients. It also reported return on assets of 5.9 percent and return on equity of 23.8 percent. IFC was a shareholder of ADOPEM between 2007 and 2015. As of 2015, the largest shareholder of ADOPEM is Madrid-based Fundación Microfinanzas BBVA that holds a 71.3 percent equity stake in the MFI.

About the International Finance Corporation (IFC)

The International Finance Corporation (IFC), a US-based member of the World Bank Group, offers loans, equity investments, advisory and risk mitigation services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2014, IFC has 184 member countries that drive its policies and approve disbursements. As of 2014, IFC reported total assets of USD 84.1 billion, net income of USD 1.48 billion and return on assets of 1.8 percent.

[1] Dominican Today, IFC and ADOPEM support 140,000 new loans for micro-entrepreneurs in the Dominican Republic

[2] Banco de Ahorro y Crédito ADOPEM, Perfil Institucional

[3] Banco de Ahorro y Crédito ADOPEM, Estados Financieros Al 31 De Diciembre Del 2014

[4] International Finance Corporation, ADOPEM Loan, Summary of Proposed Investment

MicroCapital Universe Profile: Banco de Ahorro y Crédito ADOPEM

MicroCapital Universe Profile: International Finance Corporation (IFC)

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