Symbiotics, a Switzerland-based investment company, recently launched a “social” bond to raise USD 10.2 million to benefit Peruvian Cooperative de Ahorro y Crédito Abaco. The bond is part of the Sustainability, Social and Green Bond Framework of Symbiotics’ entity Micro, Small & Medium Enterprises Bonds SA. The proceeds will flow to Abaco in the form of a 4-year, unsecured senior loan of PEN 36 million. Abaco plans to use the proceeds “to finance small and medium-sized enterprises within the trade, services and agriculture sectors, in particular the food industry, commercial stores and farms.”
Abaco was founded in 1981 as a savings and loan cooperative. It serves 20,000 members through three branches in the city of Lima. The cooperative’s products include youth savings accounts; payment cards; and loans for enterprise, education, homes and vehicles. It also provides services such as governance support for other cooperatives. As of 2019, it has total assets equivalent to USD 450 million.
Founded in 2004, Symbiotics provides for-profit investment intermediary and business services to investors in and practitioners of micro-, small and medium-sized enterprise development. As of 2019, the company reported a direct investment portfolio of USD 2.3 billion, with its local financing intermediaries funding 1.6 million small businesses and households at “the base of the pyramid” in 77 emerging markets. Symbiotics also operates Syminvest, a microfinance investment information platform.
By Madigan Ruch, Research Associate
Sources and Additional Resources
Symbiotics press release
https://symbioticsgroup.com/news/press-release-symbiotics-launches-first-usd-10-25-million-social-bond-with-cooperativa-de-ahorro-y-credito-abaco-in-peru/
Abaco homepage
https://www.abaco.com.pe/
Previous MicroCapital post on Abaco https://www.microcapital.org/microcapital-brief-abaco-savings-credit-cooperative-of-peru-borrows-1-5m-from-desjardins-fund-for-inclusive-finance/
Previous MicroCapital post on Symbiotics
https://www.microcapital.org/microcapital-brief-symbiotics-raises-7-8m-for-pan-asia-bank-of-sri-lanka-in-sale-of-green-bonds-to-investors-including-seb/
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