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)

The Consultative Group to Assist the Poor (CGAP) reports in its list of recent transactions that the second-largest bank in Spain and Latin America, Banco Bilbao Vizcaya Argentaria (BBVA) financed USD 2,017,400 in loans to Financiera Solidaria (FINSOL) on January 25, 2008 and USD 100,000 to Asociación Alternativa Para el Desarrollo Integral de las Mujeres (ADIM) on February 19, 2008.

The commercial and retail bank BBVA formed in 1999 through a merger between Banco Bilbao Vizcaya and Argentaria and reports 2007 total assets of EUR 502.2 billion along with a loan portfolio of EUR 318 billion. In 2007, the bank created a microfinance hedge fund, BBVA Codespa Microfinanzas (reported by MicroCapital here), and a microfinance foundation named “Fundación BBVA para las Microfinanzas.” BBVA’s return on assets (ROA) is 1.39 percent. MicroCapital recently reported on BBVA’s investments in Colombia.

FINSOL is a non-bank financial institution operating in Honduras since its inception in 1997 reporting 2007 total assets of USD 32.8 million to the MIX Market, the microfinance information clearinghouse. The San Pedro Sula-based organization has nearly 25,000 active borrowers, 73 percent of whom are women, and is part of the ACCION International network of microfinance institutions (MFIs). FINSOL has a loan portfolio of USD 29.3 million, a debt to equity ratio of 331 percent, and a 2006 ROA of 4.26 percent. MicroCapital recently reported on FINSOL here.

ACCION is a microfinance organization partnering with 35 MFIs on four continents seeking to break the cycle poverty through micro loans. The network has total assets of USD 51.1 million and MicroCapital posted a four-part report on ACCION’s March 2008 conference entitled “Cracking the Capital Markets” (1), (2), (3), (4).

Established in 1985, ADIM is a non-profit organization offering microfinance services and concentrating on female entrepreneurs in rural and periphery urban areas of Nicaragua. The Managua-based institution reports total assets of USD 692,600 and a USD 523,900 loan portfolio to the MIX Market. The MFI’s operational self-sufficiency is 105.4 percent with an ROA of 2.63 percent and a 126.6 percent debt to equity ratio.

By Anthony Busch, Research Assistant

Additional Resources:

ACCION International: Home, Partners, Financial Information

Banco Bilbao Vizcaya Argentaria: Home, History, Annual Report, Fundación BBVA para las Microfinanzas

Consultative Group to Assist the Poor: Home, List of Recent Transactions

Financiera Solidaria: Home, MIX Market Profile

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

MicroCapital article, February 19, 2008: “Dexia Micro-Credit Fund of Luxembourg Lends $3m to Microfinance Institution FINSOL, $2m to Microfinance Institution FUNDESER, $1.5m to Microfinance Institution Bai Tushum, and $100k to Microfinance Institution Sodruzhestvo”

MicroCapital article, March 19, 2008: “Does Microfinance Performance Correlate with Other Emerging Markets Investment, Part 3 of a 4-Part Series on the Cracking the Capital Markets III Conference Hosted By ACCION and Credit Suisse”

MicroCapital article, March 14, 2008: “Evaluating Microfinance’s Performance in Turbulent Markets, Part 1 of a 4-Part Series on the Cracking the Capital Markets III Conference Hosted by ACCION and Credit Suisse”

MicroCapital article, March 19, 2008: “Investments Outside the Box: Part 4 of a 4-Part Series on the Cracking the Capital Markets III Conference Hosted By ACCION and Credit Suisse”

MicroCapital article, March 19, 2008: “Microfinance Meets the Internet, Part 2 of a 4-Part Series on the Cracking the Capital Markets III Conference Hosted By ACCION and Credit Suisse”