MICROCAPITAL BRIEF: ResponsAbility of Switzerland Loans $20m to Microfinance Institution Financiera Confianza of Peru

ResponsAbility Investments, a Swiss investor in microfinance and other sectors, recently loaned USD 20 million to Financiera Confianza, a Peruvian NGO microfinance institution (MFI). Further information on the transaction is not available.

As of year-end 2012, Financiera Confianza reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 248 million, a gross loan portfolio of USD 202 million outstanding to 96,000 borrowers, USD 78 million in deposits from 45,000 depositors, return on assets (ROA) of 3.39 percent and return on equity (ROE) of 21.4 percent. Financiera Confianza is one of eight MFIs affiliated with Spanish NGO Fundacion BBVA Microfinanzas, which was founded by Spanish Bank BBVA. As of June 2013, responsAbility reported total assets under management of approximately USD 1.4 billion.

By Megan McGowan, Research Associate

About Confianza:?Financiera Confianza is a microfinance institution that was founded in Peru in 1992 as the Entrepreneurial Development Program by the US-based Inter-American Development Bank (IADB) and the Peruvian nongovernmental organization (NGO) Servicios Educativos Promoción y Apoyo Rural (SEPAR). In 1998, the program grew to become an independent financial institution and was renamed Edpyme Confianza. In 2009, it again changed its name to Financiera Confianza. It now offers microloans to rural and urban enterprises. As of year-end 2012, Financiera Confianza reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 248 million, a gross loan portfolio of USD 202 million outstanding to 96,000 borrowers, return on assets (ROA) of 3.39 percent, return on equity (ROE) of 21.4 percent and USD 78 million in deposits from 45,000 depositors. Confianza belongs to the BBVA Microfinance Foundation network. Financiera Confianza is one of eight MFIs affiliated with Spanish NGO Fundacion BBVA Microfinanzas, an NGO founded by Spanish Bank BBVA.

About Fundación BBVA Microfinanzas:

Fundación BBVA Microfinanzas (BBVA Microfinance Foundation) is a Spanish nonprofit organization that was created in May 2007 by BBVA, a Spanish bank that reported total assets of EUR 598 billion (USD 775 billion) as of December 2011. The goal of the foundation is to boost the economic and social development of disadvantaged people through access to productive microfinance. Fundación BBVA Microfinanzas is has a network of microfinance institutions (MFIs) that consists of eight MFIs in Argentina, Colombia, Dominican Republic, Panama, Peru and Puerto Rico, as September 2012. As of the same period, this group of MFIs reports outstanding credit volume of USD 1.07 billion serving 1.26 million customers in 462 branches.

About responsAbility:

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 sent directly to MicroCapital from ResponsAbility

MicroCapital.org: “FINCA Microfinance Holding Raises $48m from International Finance Corporation (IFC), Kreditanstalt fur Wiederaufbau (KfW), Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO), responsAbility Global Microfinance Fund , Triodos,” December 6, 2013, https://www.microcapital.org/microcapital-brief-finca-microfinance-holdings-raises-48m-from-international-finance-corporation-ifc-kreditanstalt-fur-wiederaufbau-kfw-nederlandse-financierings-maatschappijvoor-ontwikkelings/

MicroCapital.org: “responsAbility Investments Loans $20m to Improsa Bank of Costa Rica, Supports Small and Medium-Sized Enterprises (SMEs), November 12, 2013, https://www.microcapital.org/microcapital-brief-responsability-investments-loans-20m-to-improsa-bank-of-costa-rica-supports-small-and-medium-sized-enterprises-smes/

MicroCapital.org: “Caja Rural de Ahorro y Credito (CRAC) Nuestra Gente of Peru Now Controlled by Fundacion Microfinannzas BBVA, to be Merged into Financiera Confianza,” April 27, 2013, https://www.microcapital.org/microcapital-brief-caja-rural-de-ahorro-y-credito-crac-nuestra-gente-of-peru-now-controlled-by-fundacion-microfinannzas-bbva-to-be-merged-into-financiera-confianza/

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

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

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

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