MICROCAPITAL BRIEF: BlueOrchard Finance Loans $2.5m to Peruvian Microfinance Institution (MFI) Confianza and Ecuadorian MFI Fundacion para el Desarrollo Microempresarial (D-Miro)

In August 2010, BlueOrchard Finance, a Swiss commercial microfinance intermediary which manages 6 microfinance investment vehicles (MIVs),  loaned PEN 4.27 million (the equivalent of USD 1.53 million) to the Peruvian microfinance institution (MFI) Confianza, which provides loans, insurance and fund transfer services, and USD 1 million to the Ecuadorian MFI Fundacion para el Desarrollo Microempresarial (D-Miro).

Both sums were loaned from the Dexia Microcredit Fund (DMCF), an MIV managed by BlueOrchard Finance. According to the Microfinance Information Exchange (MIX), as of 2008, Confianza has a loan portfolio of USD 85.8 million, total assets of USD 101.5 million and 59,042 active borrowers. D-Miro, as of 2008, reported a gross loan portfolio of USD 19.8 million, total assets of USD 23.6 million and 29,359 active borrowers.

About BlueOrchard:
BlueOrchard is a Swiss commercial microfinance intermediary that provides loans to microfinance institutions through its subsidiary BlueOrchard Finance and invests in the equity of microfinance institutions and microfinance funds through its subsidiary BlueOrchard Investments. It had approximately USD 980 million under management as of June 2009.

About Dexia Micro-Credit Fund (DMCF):
The Dexia Micro-Credit Fund (DMCF) invests in debt instruments issued by microfinance institutions (MFIs). DMCF is managed by BlueOrchard Finance SA. It is also certified by LuxFLAG, an independent organization that certifies that microfinance vehicles actually invest in the microfinance sector. As of 2009, DMCF has USD 531 million in assets.

About Confianza:
Founded in 1992, Confianza is a microfinance institution (MFI) provides microloans, insurance and fund transfer services to entrepreneurs and small and  medium-sized enterprises (SMEs). According to the Microfinance Information Exchange (MIX), as of 2008, Confianza has a loan portfolio of USD 85.8 million, total assets of USD 101.5 million and 59,042 active borrowers.

About Fundación para el Desarrollo Microempresarial (D-Miro):
D-Miro was started by Norway-based Mision Alianza in 1997 in Ecuador, but has operated as an independent microfinance organization since 2006. In 2009, D-Miro reported to the MIX assets of USD 23.6 million, 29,359 active borrowers, a gross loan portfolio of USD 19.8 million, a return on assets of -2.88 percent, and a return on equity of -11.8 percent.

By Trevor Kwong, Research Assistant

Sources and Additional Resources:
[1] Source: BlueOrchard email correspondence with MicroCapital

[2] MicroCapital Universe: BlueOrchard:
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=BlueOrchard

[3] MicroCapital Universe: Dexia Microcredit Fund:
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Dexia+Microcredit+Fund+(DMCF)

[4] Microfinance Information Exchange (MIX): Confianza:
http://www.mixmarket.org/mfi/edpyme-confianza

[5] Microfinance Information Exchange (MIX): D-Miro:
http://www.mixmarket.org/mfi/d-miro/data

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