MICROCAPITAL STORY: Rural Impulse Fund Lends $300k to Latin America Microfinance Institution Fundación ESPOIR

The Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse, reported the Rural Impulse Fund, an investment fund managed by Icofin, based in Antwerp, Belgium, issued a loan of USD 300,000 to Fundación ESPOIR, a Latin America microfinance institution (MFI).

Fundación ESPOIR, based in Ecuador, was founded in 1992 to contribute to the economic and social development and health of poor female microentrepreneurs. According to its most recent financial data posted by MIX, Fundación ESPOIR had total assets of equivalent USD 7.1 million, consisting of a gross loan portfolio of equivalent USD 6.6 million. Return on assets was 6.55% and return on equity was 25.73%. At the end of 2006, Fundación ESPOIR serviced 15,329 active borrowers of which 100% are women.

The Rural Impulse Fund (RIF) targets rural MFIs and was announced by Icofin, a social investment company that specializes in microfinance investment in developing countries, in August, which was covered by MicroCapital.org. “The RIF aims to increase the supply of rural microfinance by extending commercial funding and strengthening the financial structure of MFIs which have both successfully provided financial services to rural poor and been financially sustainable.” RIF’s total assets are USD 38 million. The RIF investor base is 50% public and 50% private.

Additional Resources:

CGAP: “List of Recent Transactions”

MIX Market: “Profile for Fundación Espoir”

MIX Market: “Profile for Rural Impulse Fund”

MicroCapital.org article, August 15, 2007: “MICROCAPITAL STORY: Incofin Announces Creation of Rural Impulse Fund, an Investment Fund to Target Rural Microfinance; BIO, EIB, IFC, FMO Invest”

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”

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