MICROCAPITAL BRIEF: responsAbility Investments Loans $5m to Microfinance Institution Edpyme Raiz of Peru

Switzerland-based investment company responsAbility Investments AG recently notified MicroCapital that it has made a senior loan of USD 5 million to Edpyme Raiz, a microfinance institution (MFI) in Peru that provides loans to micro- and small enterprises [1]. Further details, such as terms of the loan, have not been disclosed.

As of June 2013, Edpyme Raiz reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 183 million, a gross loan portfolio of USD 163 million, return on assets (ROA) of 0.54 percent, return on equity (ROE) of 2.13 percent and approximately 97,600 borrowers. Edpyme Raiz is in the process of transforming into a “financier,” a status that will allow it to accept deposits. It has 48 branch offices across Peru.

As of June 2013, responsAbility reported total assets under management of approximately USD 1.4 billion.

By Nisha Koul, Research Associate

About Edpyme Raiz: Edpyme Raiz, established in 1999 in Peru, facilitates the growth of micro- and small enterprises by providing loans to low-income entrepreneurs. As of June 2013, Edpyme Raiz reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 183 million, a gross loan portfolio of USD 163 million, return on assets (ROA) of 0.54 percent, return on equity (ROE) of 2.13 percent and approximately 97,600 borrowers. Edpyme Raiz is in the process of transforming into a “financier,” a status that will allow it to accept deposits. It has 48 branch offices across Peru.

About responsAbility Investments AG: Founded in 2003, responsAbility Investments AG is a Swiss investment company whose products aim to enable investors to earn a financial return while assisting people in emerging markets to access information and services in sectors such as microfinance, small and medium-sized enterprise (SME) financing, fair trade and independent media. As of June 2013, responsAbility reported total assets under management of approximately USD 1.4 billion. responsAbility is backed by Swiss financial institutions and a social venture capital company as founders and shareholders including Baumann & Cie, Banquiers, Credit Suisse, Raiffeisen Schweiz, Swiss Re, Bank Vontobel AG as well as George Avenue.

Sources and Additional Resources:

[1] Information provided to MicroCapital by responsAbility, October 2013

MicroCapital Story, September 10, 2013, “responsAbility Loans $20m to UT Bank Ghana to Support Small- and Medium-sized Enterprises (SMEs),” https://www.microcapital.org/microcapital-brief-responsability-loans-20m-to-ut-bank-ghana-to-support-small-and-medium-sized-enterprises-smes/

MicroCapital Story, November 6, 2012, “Absolute Portfolio Management Dual Return Funds Loan $5m to Microfinance Institutions in Ecuador, Peru,” https://www.microcapital.org/microcapital-brief-absolute-portfolio-management-dual-return-funds-loan-5m-to-microfinance-institutions-in-ecuador-peru/

MicroCapital Universe Profile, Edpyme Raiz, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Edpyme+Raiz

MicroCapital Universe Profile, responsAbility Investments AG, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility

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