MICROCAPITAL BRIEF: Cooperative Daquilema, Symbiotics Partner on $6.5m Bond Issue to Boost MSME Lending Among Indigenous Populations in Ecuador

Cooperativa de Ahorro y Crédito Fernando Daquilema, a cooperative in Ecuador, recently partnered with Symbiotics, a Switzerland-based impact investing firm, to raise USD 6.5 million via a bond issue with a term of three years. Daquilema is to on-lend the funds in amounts up to USD 10,000 for microenterprises and up to USD 1 million for small and medium-sized enterprises (SMEs). The bond, which Symbiotics listed on the Luxembourg Stock Exchange’s Luxembourg Green Exchange, meets the Social Bond Principles of the Switzerland-based International Capital Market Association.

Vincent Lehner, the head of markets at Symbiotics, said, “With the issuance of this social bond, Symbiotics will contribute to the socio-economic development of indigenous populations, and we are excited to continue supporting Ecuadorian low-income communities and businesses in the recovery phase of the pandemic.”

Pedro Khipo, the CEO of Daquilema, said, “The funds will be allocated to microentrepreneurs, including merchants, artisans and farmers, under the principle of sustainability. This will strengthen and reactivate their businesses, reducing poverty by generating sources of employment and income.”

Daquilema’s membership includes 132,000 families accessing payment, savings and deposit services via 19 branches in 11 provinces. Its investment products offer rates up to 9.75 percent per year. It has a portfolio of USD 240 million as of 2021. Further financial data on the coop are not available.

Founded in 2004, Symbiotics provides for-profit investment intermediary and business services to investors in and practitioners of microfinance and SME development as well as lenders to low- and middle-income households. As of 2020, the company reported a direct investment portfolio of USD 2.4 billion invested in 291 financial institutions across 75 countries.

By Sheen Gupta, Research Associate

Sources and Additional Resources

Symbiotics press release
https://symbioticsgroup.com/news/symbiotics-launches-usd-6-5-million-social-bond-in-ecuador-with-cooperativa-de-ahorro-y-credito-fernando-daquilema/

Daquilema homepage
https://www.coopdaquilema.com/

Daquilema product terms
https://www.coopdaquilema.com/transparencia/

International Capital Market Association homepage
https://www.icmagroup.org/

Luxembourg Green Exchange webpage
https://www.bourse.lu/green

Symbiotics homepage
https://symbioticsgroup.com/

Symbiotics 2020 annual report
https://symbioticsgroup.com/wp-content/uploads/2021/06/AR2020_Symbiotics_Public-1.pdf

Previous MicroCapital article on Symbiotics
https://www.microcapital.org/microcapital-brief-symbiotics-partners-with-cooperative-cacpeco-on-14m-bond-for-housing-msme-lending-in-ecuador/

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