The International Finance Corporation, the private-investment arm of the World Bank Group, recently issued its “Taino II” bond in the amount of DOP 180 million (USD 4 million), the proceeds of which will go to Banco de Ahorro y Crédito ADOPEM SA, a microfinance institution formerly known as Asociación Dominicana para el Desarrollo de la Mujer that is a member of the Spain-based Fundación BBVA Microfinanzas. In addition to providing microloans, savings and insurance products, Banco ADOPEM offers non-financial services such as business and financial education courses, targeting impoverished women.
Citinversiones de Títulos y Valores, SA (Puesto de Bolsa) functioned as lead underwriter and helped to raise capital for the transaction along with co-placement agent BHD León Puesto de Bolsa, SA. The Taino II bond has a duration of 6.5 years and a yield of 8.75 percent.
The transaction marks IFC’s second issuance from the Taino program, which is funded with the equivalent of USD 100 million and is intended to bolster domestic capital markets while promoting financial inclusion. IFC’s representative in the Dominican Republic, Guillermo Villanueva, asserts that the bond program is “providing Dominican companies with long-term financing in local currency and mobilizing funds to create jobs and help micro-entrepreneurs”.
IFC reports total assets of USD 87.5 billion, USD 445 million in net income and USD 298 million in active investments in the Dominican Republic. Banco ADOPEM reports to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 129 million, a gross loan portfolio of USD 111 million with 218,000 active borrowers and deposits of USD 50.7 million from 310,000 clients. It also reported return on assets of 5.9 percent and return on equity of 23.8 percent. In addition to Banco ADOPEM, Fundación BBVA Microfinanzas operates MFIs in Chile, Colombia, Panama, Peru and Puerto Rico. Fundación BBVA Microfinanzas is the largest shareholder in Banco ADOPEM with a 71.3 percent equity stake and reported total assets of EUR 669 billion (USD 730 billion) as of June 30, 2015.
By Michelle Dold, Research Associate
About International Finance Corporation (IFC)
The International Finance Corporation (IFC), a member of the US-based World Bank Group, offers loans, equity investments, technical assistance, and advisory and risk mitigation services to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2015, IFC has 184 member countries that drive its policies and approve disbursements, it and reported total assets of USD 87.5 billion and net income of USD 445 million.
About Banco de Ahorro y Crédito ADOPEM (Banco ADOPEM)
Established in 1982, Banco de Ahorro y Crédito ADOPEM (formerly known as Asociación Dominicana para el Desarrollo de la Mujer) is a microfinance institution (MFI) based in the Dominican Republic. It provides financial products and services including microloans, savings and insurance products. It also provides non-financial services such as enterprise skill development and financial literacy education. Banco ADOPEM reports to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 129 million, a gross loan portfolio of USD 111 million with 218,000 active borrowers and deposits of USD 50.7 million from 310,000 clients. It also reported return on assets of 5.9 percent and return on equity of 23.8 percent. IFC was a shareholder of ADOPEM between 2007 and 2015. As of 2015, the largest shareholder of ADOPEM is Spain-based Fundación BBVA Microfinanzas, which holds a 71.3 percent equity stake in the MFI.
About Fundación BBVA Microfinanzas
Fundación BBVA Microfinanzas (BBVA Microfinance Foundation) is a Spanish nonprofit organization that was created in May 2007 by BBVA, a Spanish bank that reported total assets of EUR 669 billion (USD 730 billion) as of June 30, 2015. The goal of the foundation is to boost the economic and social development of disadvantaged people through access to productive microfinance. Fundación BBVA Microfinanzas has a network of seven microfinance institutions (MFIs) in Chile, Colombia, the Dominican Republic, Panama, Peru and the US territory of Puerto Rico. As of September 2015, the MFIs reported a total of 504 branches and an outstanding credit portfolio of USD 1 billion serving approximately 1.7 million customers.
Sources and Other Information:
 Dominican Today: “IFC launches 2nd Taino Bond, raising US$4M for microfinance in the Dominican Republic.”, http://www.dominicantoday.com/dr/economy/2016/7/25/60110/IFC-launches-2nd-Taino-Bond-raising-US4M-for-microfinance-in-the
 International Finance Corporation (IFC): “IFC Launches Taino Bond in Dominican Republic, Marking First Local Placement by International Issuer.”, http://www.ifc.org/wps/wcm/connect/region__ext_content/regions/latin+america+and+the+caribbean/news/taino+bond
 World Bank (WB): “Local Currency Bonds Catch On as Countries Aim to Catch Up.”, http://www.worldbank.org/en/news/feature/2014/05/15/local-currency-bonds-catch-on
 MicroCapital Universe Profile: International Finance Corporation (IFC)
 MicroCapital Universe Profile: Banco de Ahorro y Crédito ADOPEM S.A. (Banco ADOPEM)
 MicroCapital Universe Profile: Fundación BBVA Microfinanzas
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