MicroSave, a technical assistance, training and technical resource center for microfinance organizations, has released a podcast discussing issues surrounding the controversially lucrative 2007, USD 458 million initial public offering of the Mexican microfinance bank, Compartamos. The podcast includes interviews with Mr Richard Rosenberg, Senior Advisor at CGAP (Consultative Group to Assist the Poor), a policy and research center, and Mr Carlos Danel, Member of the Board of Directors and Co-Chief Executive Officer of Compartamos.
Issues discussed include Compartamos’ business model, growth of operations, interest rates, the use of grant funding to develop the organization and the role of external shareholders.
By Stefanie Rubin, Research Associate
About 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, such as craft manufacturers, food vendors and other small businesses. 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, and, as of December 31, 2009, had a total loan portfolio of MXN 7.6 billion (the equivalent of USD 591 million).
About MicroSave:
Established in Uganda in 1998, MicroSave is a technical assistance, training and technical resource center. According to its website, it was “designed and financed by the United Nations Development Programme (UNDP) and Official Development Aid (ODA) to address the mono-credit culture prevalent in East and Southern Africa.” In 2008, MicroSave was transformed into a consulting company, which has since completed projects in Cameroon, Congo, Ethiopia, Ghana, Kenya, Malawi, Nigeria, South Africa, Tanzania, Uganda and Zambia. MicroSave has also established a presence in India with support from ICICI Bank.
About CGAP (Consultative Group to Assist the Poor):
Housed at the World Bank Group, CGAP (Consultative Group to Assist the Poor) is an independent policy and research center dedicated to providing financial access for the world’s poor. CGAP is supported by over thirty development agencies and private foundations. Its mission is to provide market intelligence, to promote standards and to offer advisory services to governments, microfinance providers, donors and investors.
Additional Resources:
MicroCapital Universe: Compartamos Banco
MicroCapital Universe: MicroSave
MicroCapital Universe: CGAP (Consultative Group to Assist the Poor)
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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