MICROCAPITAL BRIEF: Mexican Microfinance Institution (MFI) Compartamos Banco Raises $80m With Bond Issue

Compartamos Banco, a microfinance institution (MFI) based in Mexico, announced that it has raised MXN 1 billion (approximately USD 80.6 million) through the public issuance of local bank bonds (‘Certificados Bursátiles Bancarios’) in the local debt capital market.

The bonds carry a maturity of 5 years at the floating interest rate of the Mexican Interbank Rate (Tasa de Interés Interbancaria de Equilibrio) plus 130 basis points. Standard & Poors and Fitch Ratings gave the issuance a rating of “mxAA” and “AA-(mex)” respectively.

As of 2009, Compartamos Banco had total assets equivalent to USD 708 million, a gross loan portfolio of USD 577 million and 1.5 million borrowers. For the quarter ending June 30, 2010 the MFI had a return on assets (ROA) of 19.65% and return on equity (ROE) of 42.17%.

By Witt Gatchell, Research Associate

Compartamos Banco:
Compartamos Banco is a microfinance bank based in Mexico. It was founded in 1990. It offers both group and individual loans in rural and urban areas. Compartamos Banco provides small loans to low-income Mexican individuals and business owners. It also offers voluntary savings, insurance, and loans specifically for home improvement. The company made its initial public offering (IPO) in 2007 on the New York and Mexican stock exchanges in a transaction worth USD 467 million. As of 2009, Compartamos Banco had total assets equivalent to USD 708 million, a gross loan portfolio of USD 577 million and 1.5 million borrowers. For the quarter ending June 30, 2010 the MFI had a return on assets (ROA) of 19.65% and return on equity (ROE) of 42.17%

Sources and Additional Information:
[1] Business Wire: “Compartamos Banco Issues Long Term Debt” http://www.businesswire.com/news/home/20101014006024/en/Compartamos-Banc…

MicroCapital’s Microfinance Universe profile: Compartamos Banco: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Com…

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