Nonprofit social investor Global Partnerships (GP), which has offices in USA and Nicaragua, has made its first two loans in Colombia to the following microfinance institutions: USD 1 million to Fundación Amanecer and USD 1.5 million to Corporación Nariño Empresa y Futuro (Contactar). The loans were disbursed from GP’s Social Investment Fund 2010. With this investment, GP is now supporting 33 microfinance organizations and cooperatives in eight countries in Latin America: Bolivia, Colombia, Ecuador, El Salvador, Honduras, Mexico, Nicaragua and Peru.
“By investing in the innovative work of Fundación Amanecer and Contactar, we are helping poor and underserved populations in Colombia access critical services to help them earn a living and improve their lives,” said Mark Coffey, Chief Investment Officer of GP. “We are excited to help these organizations increase their impact in Colombia, which is one of the most populous countries in Latin America and which faces unique challenges in fighting poverty.”
Fundación Amanecer seeks to contribute to increased economic productivity in the Orinoquia region by providing training and promoting entrepreneurship through lending. As of December 2010, Fundación Amanecer reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 10.1 million, a gross loan portfolio of USD 9 million, return on assets of 10 percent and return on equity of 19.12 percent.
Contactar offers microcredit, savings accounts, financial education and basic dental services to its clients, the majority of which work in agricultural enterprises. As of December 2010, Contactar reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 24.5 million, gross loan portfolio of USD 23 million, return on assets of 9.24 percent, return on equity of 24.7 percent and approximately 31,800 active borrowers.
By Kristha Abores, Research Associate
About Global Partnerships:
Global Partnerships (GP) raises capital and provides low-cost loans through its four debt-based microfinance investment funds. The company has staff based in Seattle in the US state of Washington and Managua, Nicaragua. As of August 2011, GP has invested USD 36.2 million in 30 microfinance institutions that serve a total of 972,000 borrowers in eight Latin American countries.
About Global Partnerships Social Investment Fund:
Social Investment Fund 2010 (SIF 2010) is a USD 20 million, five-year debt fund created by Global Partnerships (GP), a microfinance organization with offices in the United States and Nicaragua, that aims to provide affordable loan capital to up to 20 microfinance institutions in Latin America. The goals of the fund are to increase access to microcredit for people living in poverty in Latin America; to support the growth and development of microfinance institutions (MFIs) that are achieving exceptional levels of social impact; and to return capital to investors with fixed-income returns.
Forty-one investors are participating in SIF 2010 including the Inter-American Development Bank (IDB), Overseas Private Investment Corporation (OPIC), the Linked Foundation, the Perls Foundation, the Brown Family Private Foundation, Seattle University, faith-based institutions such as the Mercy Partnership Fund and 23 accredited individual investors.
About Fundación Amanecer:
Established in October 1994, Fundación Amanecer is a microfinance institution based in Casanare, Colombia. It seeks to contribute to increased economic productivity in the Orinoquia region by providing training and promoting entrepreneurship. As of December 2010, Fundación Amanecer reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 10.1 million, a gross loan portfolio of USD 9 million, return on assets of 10 percent and return on equity of 19.12 percent.
About Corporación Nariño Empresa y Futuro (Contactar):
Corporación Nariño Empresa y Futuro (Contactar) is a Colombian microfinance institution (MFI) that was established in 1995. It offers microcredit, savings accounts, financial education and basic dental services to its clients, the majority of which work in agricultural enterprises. As of December 2010, Contactar reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 24.5 million, gross loan portfolio of USD 23 million, return on assets of 9.24 percent, return on equity of 24.7 percent and approximately 31,800 active borrowers.
Sources and Additional Resources:
[1] Global Partnerships Press Release: “Global Partnerships makes first investments in Colombia”, http://www.globalpartnerships.org/sections/newsinfo/newsinfo_nr_Colombia_investments.htm
MicroCapital.org article, August 30, 2011, “MICROCAPITAL BRIEF: Microcredit in Colombia Continues to Grow at a Steady Rate, Driven By Micro- and Small-Sized Enterprises (MSEs)”, https://www.microcapital.org/microcapital-brief-microcredit-in-colombia-continues-to-grow-at-a-steady-rate-driven-by-micro-and-small-sized-enterprises-mses/
MicroCapital.org article, May 10, 2011, “MICROCAPITAL BRIEF: Global Partnerships Social Investment Fund (SIF) 2010 Loans $700k to FONDECO of Bolivia, Enlace of El Salvador”, https://www.microcapital.org/microcapital-brief-global-partnerships-social-investment-fund-sif-2010-loans-700k-to-fondeco-of-bolivia-enlace-of-el-salvador/
MicroCapital.org article, April 11, 2011, “MICROCAPITAL BRIEF: Global Partnerships (GP) Microfinance Funds Loan $1m to Enlace of El Salvador, Cafe y Desarrollo of Mexico”, https://www.microcapital.org/microcapital-brief-global-partnerships-gp-microfinance-funds-loan-1m-to-enlace-of-el-salvador-cafe-y-desarrollo-of-mexico/
MicroCapital Universe Profile: Global Partnerships, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Global+Partnerships
MicroCapital Universe Profile: Global Partnerships Social Investment Fund, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Global+Partnerships+Social+Investment+Fund+2010
MicroCapital Universe Profile: Fundación Amanecer, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fundaci%C3%B3n+Amanecer
MicroCapital Universe Profile: Contactar, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Contactar
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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