MICROCAPITAL BRIEF: Microfinance Investment Manager BlueOrchard Invests $5.5m in Fondo de Desarrollo Local (FDL) of Nicaragua, First Allied Savings and Loans Limited (FASL) of Ghana and AB Microfinance Bank of Nigeria

BlueOrchard Finance SA, a subsidiary of Switzerland-based commercial microfinance intermediary BlueOrchard, reported to MicroCapital the details of three debt investments made to microfinance institution (MFI) Nitlapan’s Credit Program Fondo de Desarrollo Local (FDL) of Nicaragua (MFI), First Allied Savings and Loans Limited (FASL), an MFI in Ghana, and the commercial AB Microfinance Bank of Nigeria.

BlueOrchard loaned Nitlapan’s FDL USD 2.5 million. As of year-end 2009, FDL had a gross loan portfolio of USD 69.3 million, total assets of USD 81 million and 76,700 active borrowers. In the same year, return on assets (ROA) was -3.99 percent and return on equity (ROE) was -25.89 percent.

BlueOrchard loaned USD 2 million to FASL of Ghana. As of 2009, FASL had a gross loan portfolio of USD 16.8 million, total assets of USD 35.9 million and 16,400 active borrowers. ROA was 2.92 percent and ROE was 16.58 percent for the same year.

A final loan of the local-currency equivalent of USD 1 million was made to AB Microfinance Bank of Nigeria, an MFI in Nigeria’s Lagos state that serves micro-, small and medium enterprises (MSMEs). Financial information is not available.

All loans were made from the Dexia Microcredit Fund (DMCF), an MIV managed by BlueOrchard Finance [1].

By John Howard-Smith, Research Associate

About BlueOrchard: BlueOrchard is a Switzerland-based, commercial microfinance intermediary that provides loans to microfinance institutions through its subsidiary BlueOrchard Finance S.A. and invests in the equity of microfinance institutions and microfinance network funds through its subsidiary BlueOrchard Investments S.A. BlueOrchard had approximately USD 895 million assets under management and a microfinance portfolio of USD 715 million as of year-end 2009.

About Fondo de Desarrollo Local (FDL): Fondo de Desarrollo (FDL) is a credit program based in Nicaragua created by the microfinance institution (MFI) Nitlapan. Eventually FDL spun off as an MFI with its own legal identity.  Both Nitlapan and FDL are affiliates of Central American University in Managua, Nicaragua. As of year-end 2009, FDL had a gross loan portfolio of USD 69.3 million, total assets of USD 81 million and 76,700 active borrowers. In the same year, return on assets (ROA) was -3.99 percent and return on equity (ROE) was -25.89 percent.

About First Allied Savings and Loans Limited (FASL):  First Allied Savings and Loans Limited (FASL) is a deposit-taking microfinance institution (MFI) incorporated in Ghana in 1995. FASL was established to provide savings and credit opportunities to micro- and small businesses. As of 2009, FASL had a gross loan portfolio of USD 16.8 million, total assets of USD 35.9 million and 16,400 active borrowers. ROA was 2.92 percent and ROE was 16.58 percent for the same year.

About AB Microfinance Bank of Nigeria Limited: AB Microfinance Bank of Nigeria Limited is a microfinance institution (MFI) based in the Lagos state of Nigeria. It was created in 2008 by Access Microfinance Holding AG, an investor in MFIs, and Impulse Microfinance Investment Fund, a fund managed by Incofin Invesment Management. According to its website, the MFI offers a “broad range of financial services to micro, small, and medium enterprises (MSMEs) and lower income populations.” The bank’s shareholders include AccessHolding (50.10%), the International Finance Corporation (IFC) (15.00%), the African Development Bank (12.45%), and Impulse Microfinance Investment Fund (10.00%).

[1] Data submitted by BlueOrchard to MicroCapital November 2010

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

MicroCapital’s Microfinance Universe profile: Fondo de Desarrollo Local (FDL), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fondo+De+Desarrollo+Local+(FDL)

MicroCapital’s Microfinance Universe profile: First Allied Savings and Loans Limited (FASL), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=First+Allied+Savings+and+Loans+Limited+(FASL)

MicroCapital’s Microfinance Universe profile: AB Microfinance Bank of Nigeria Limited, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=AB+Microfinance+Bank+Nigeria+Limited

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

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