Peru’s Abaco Savings & Credit Cooperative recently agreed to borrow USD 1.5 million for six years from the Desjardins Fund for Inclusive Finance, one of two funds of Développement international Desjardins (DiD), a member of the Canadian cooperative Desjardins Group. The subordinated loan is intended to support the growth of Abaco, as well as to help it comply with Peru’s tightening capitalization requirements. The cooperative serves 20,000 members through its three branches in the city of Lima. Its products include savings, including youth savings accounts; payment cards; and loans for enterprise, education, homes and vehicles. It also provides services such as loans and governance support to other organizations such as cooperatives. It has total assets equivalent to USD 450 million.
DiD seeks “to provide disadvantaged communities around the world with access to secure, diversified financial services.” It owns or supports financial centers for entrepreneurs in Haiti, Panama, Sri Lanka and five African countries. It also manages the equivalent of USD 26 million via its Partnership Fund and Desjardins Fund for Inclusive Finance. Through these two funds and the Investment Fund for International Development, which is no longer operating, DiD has invested in 35 institutions in 20 countries since 1998. Together, DiD’s partner microfinance institutions reach approximately 10.9 million families and entrepreneurs as of 2018.
The Desjardins Group, a financial cooperative offering banking, insurance, securities and investment services, holds approximately CAD 295 billion (USD 223 billion) in assets as of September 2018.
Sources and Additional Resources
DiD press release
https://www.did.qc.ca/en/news/new-investment-financial-cooperative-peru-228/
Abaco home page
https://www.abaco.com.pe/
DiD home page
http://did.qc.ca/
Desjardins Group financials
https://www.desjardins.com/ca/about-us/investor-relations/annual-quarterly-reports/desjardins-group/index.jsp
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