MICROCAPITAL STORY: Banco Bilbao Vizcaya Argentaria (BBVA) of Spain Lends $300k to Fundación para el Desarrollo de la Microempresa (FUDEMI), $750k to Fundación para el Apoyo a la Microempresa (FAMA) and $541k to CRAC Profinanzas, Latin American Microfinance Institutions

CGAP (Consultative Group to Assist the Poor) reported in its recent list of transactions, that Banco Bilbao Vizcaya Argentaria (BBVA), a Spanish financial institution, lent USD 300,000 to Fundación para el Desarrollo de la Microempresa (FUDEMI), USD 750,000 to Fundación para el Apoyo a la Microempresa (FAMA) and USD 541,440 to CRAC Profinanzas, all three of which are Latin American microfinance institutions (MFIs).

BBVA, formed through the 1999 merger of Banco Bilbao Vizcaya and Argentaria, is engaged in commercial and retail banking, private banking, asset management and investment banking. BBVA reports 2008 first quarter total assets of EUR 483.4 billion (approximately USD 763.8 billion) with a gross loan portfolio of EUR 319.9 billion (approximately USD 505.4 billion). In 2007, BBVA launched a microfinance foundation, Fundación BBVA para las Microfinanzas, with an initial endowment of EUR 200 million (approximately USD 273.3 million). At the end of 2008 first quarter, BBVA had return on equity of 27.4 percent and a return on assets of 1.35 percent. MicroCapital covered the BBVA foundation’s recent ventures in Peru and Columbia.

FUDEMI, based in Nicaragua, was founded in 1994. The most recent financial data provided by the Microfinance Information eXchange (MIX) shows FUDEMI’s total assets to be USD 2.5 million and its gross loan portfolio to be USD 2.3 million. The MFI’s return on assets was 6.51 percent, and its return on equity was 27.31 percent. As of December 2007, FUDEMI had 5,899 active borrowers, and the average loan balance per borrower was USD 395.

Founded in 1992, FAMA was created with the support of ACCION International, an MFI founded in 1961, which mainly operates in South America. FAMA still remains under the ACCION network. According to the 2007 financial data provided by the MIX, FAMA had total assets of USD 33.9 million and a gross loan portfolio of USD 31.4 million. Its most recent return on assets was 3.65 percent while its return on equity was 11.01 percent. At the end of 2007, FAMA had 42,918 active borrowers and claimed female micro-entrepreneurs to be its main clients, with 72.7 percent of borrowers being women.

Caja Rural de Ahorro y Crédito Profinanzas (CRAC Profinanzas) was founded in 1995 and is based in Lima, Peru. The MIX reports Profinanzas’ 2007 year end total assets to be USD 29.6 million and its gross loan portfolio to be USD 22.9 million. Profinanzas had a return on assets of 3.91 percent and a return on equity of 30.14 percent. At the end of 2007, the MFI had 14,352 active borrowers, with average loan balance per borrower of USD 1598.

Additional Resources:

ACCION International: Home, History, FAMA – Fundación para el Apoyo a la Microempresa

Banco Bilbao Vizcaya Argentaria: Home, History – The Creation of BBVA, First Quarter Financial Results, Fundación BBVA para las Microfinanzas

CGAP (Consultative Group to Assist the Poor): Home, List of Recent Transactions – April 2008

FAMA: Home

MIX Market: Profile for FAMA

MIX Market: Profile for FUDEMI

MIX Market: Profile for CRAC Profinanzas

MicroCapital.org article, April 1, 2008: MICROCAPITAL STORY: Fundación BBVA para las Microfinanzas Will Acquire Edpyme Crear Tacna

MicroCapital.org article, February 19, 2008: MICROCAPITAL STORY: Banco Bilbao Vizcaya Argentaria (BBVA) of Spain Announces Colombia Investments, Including $13.3m to Start Leasing Operation and Planned Microcapital Bank

MicroCapital.org article, March 28, 2008: MICROCAPITAL STORY: Banco Bilbao Vizcaya Argentaria (BBVA) of Spain Lends $2m to Financiera Solidaria (FINSOL) and $100k to the Asociación Alternativa Para el Desarrollo Integral de las Mujeres (ADIM)

Profinanzas: Home