MICROCAPITAL STORY: responsAbility Global Microfinance Fund of Switzerland Lends $500k to Microfinance Institution ENLACE and $487k to Microfinance Institution EDPYME Confianza

The Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse, reported responsAbility Global Microfinance Fund, a Luxembourg-based fund, issued a loan of USD 500,000 to ENLACE and a loan of USD 487,439 to EDPYME Confianza, both Latin America microfinance institutions (MFIs).

The responsAbility Global Microfinance Fund is an investment instrument that allows investors the opportunity to invest in institutions that provide financial returns, social benefits and contribution towards development policy goals. The fund’s primary focus is microfinance. As of January 2007, the fund had total assets of USD 96.1 million of which USD 89.5 million was allocated to microfinance. The fund is managed by responsAbility, a Zurich-based provider of social investment advisory services. responsAbility focuses on developing countries and investments that generate social benefits. responsAbility aims to become the Swiss platform for investment in microfinance.

ENLACE was founded in 1997 and is based in El Salvador. According to its most recent “financial data” on the MIX, ELACE had total assets of equivalent USD 4.4 million which consisted of a gross loan portfolio of equivalent USD 4.0 million. Return on assets for the MFI was 6.31 percent and it had return on equity of 10.63 percent. At the end of 2006, the MFI serviced 16,772 active borrowers of which approximately 85.80% are women. The average loan balance per borrower is equivalent USD 241.

EDPYME Confianza, based in Peru, was originally a branch of the non-governmental organization SEPAR founded in 1993, which implemented a credit program to promote economic activity amongst rural women. EDPYME Confianza started operations in 1998 and at the end of 1998 had total assets of equivalent USD 743,568. According to its most recent “financial data” on the MIX, EDPYME Confianza had total assets of equivalent USD 53.2 million. Its gross loan portfolio was equivalent USD 37.8 million. The return on assets for the MFI was 1.65 percent and it had return on equity of 10.76 percent. At the end of 2006, the MFI serviced 33,317 active borrowers of which approximately half are women. The average loan balance per borrower is equivalent USD 1,135.

Additional Resources:

CGAP: “List of Recent Transactions”

MIX Market: “Profile for ENLACE”

MIX Market: “Profile for EDPYME Confianza”

MicroCapital.org article, October 15, 2007: “MICROCAPITAL STORY: responsAbility Global Microfinance Fund of Switzerland Lends $500k to Microfinance Institution Thaneakea Phum (Cambodia) LTD and $4m to Microfinance Institution PRASAC MFI LTD”

MicroCapital.org article, October 8, 2007: “MICROCAPITAL STORY: ResponsAbility Global Microfinance Fund of Switzerland Lends over $1m to Peru-based Edpymes Proempresa”

MicroCapital.org article, September 25, 2007: “MICROCAPITAL STORY: ResponsAbility Global Microfinance Fund of Switzerland Lends over USD 2.1 Million to Fondesurco, Fundación ESPOIR and LOKMicro”

MicroCapital.org article, September 3, 2007: “MICROCAPITAL STORY: ResponsAbility Global Microfinance Fund of Switzerland Loans over USD 1.1 Million to Unión de Crédito Interestatal Chiapas (Unicreich) of Mexico and PRESTANIC of Nicaragua”

MicroCapital.org article, April 6, 2007: “MICROCAPITAL STORY: ResponsAbility Lends USD 3.9 Million to 7 Latin American Microbanks: FDL, ADMIC, PRESTANIC, ProCredit Ecuador, AMC-SV, Fundación Campo, Corporación de Productores Café.”

MicroCapital.org article, November 3, 2006: “MICROCAPITAL STORY: The ResponsAbility Global Microfinance Fund Distributes Loans to Various Microfinance Institutions in Latin America”

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