Calvert Impact Capital, a US-based NGO that raises money for organizations with “a social and/or environmental focus,” recently disbursed a three-year loan to Global Communities, a US-based NGO that provides financial, health, urban-management and other services in 43 countries. Global Communities will use the funds to support housing lending in the West Bank and Gaza via its for-profit holding company, the Vitas Group.
Calvert Investments Director Songbae Lee said, “This investment is interesting to us because it expands our traditional microfinance investing with a focus on international housing…”.
Vitas Palestine was launched in 1994 as Ryada – a name it still uses in Gaza – to provide home-improvement loans. As of 2018, it also offers loans for land, apartments and business purposes via seven branches in the West Bank and Gaza. As part of its credit assessment process, it reviews government files intended to reduce the odds of loan proceeds being diverted to support violence. The institution has a portfolio of USD 47 million outstanding to 9,500 clients as of 2018. In addition to Palestine, the Vitas Group operates in Egypt, Lebanon, Jordan and Romania.
Global Communities took in revenue of USD 155 million during the year ending September 2016.
As of 2016, Calvert had USD 322 million deployed in 97 countries that it had raised from 4,000 investors through its Community Investment Notes program. In 2017, it launched a syndication service through which it has raised USD 79 million as of 2018.
Sources and additional resources
Vitas Group press release
http://www.vitasgroup.com/global-communities-calvert-impact-capital-sign-5-million-loan-agreement-to-expand-lending-in-the-middle-east/
Vitas Group home page
http://www.vitasgroup.com/
Global Communities financials
https://www.globalcommunities.org/financials
Calvert 2017 Impact Report
https://www.calvertimpactcapital.org/2017-impact-report
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
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