Global Partnerships Social Investment Fund 5.0 LLC
Status: Completed investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Global Partnerships Fund Management LLC (GP) lends money to financially self-sustaining microfinance institutions (MFIs) and cooperatives in Latin America and the Caribbean through its new fund, GP Social Investment Fund 5.0. GP believes that access to microcredit is insufficient to help low-income people break the cycle of poverty. It therefore focuses on social enterprises that are committed to combining microcredit with services in the following four impact areas: (i) microentrepreneurship (business education); (ii) rural livelihoods (technical support and market access for farmers); (iii) green technology (access to affordable clean household technologies); and (iv) health services (health education and services). Of the borrowers currently served by GP, 71% are women and 40% live in rural areas.
What is our funding objective?
FMO will invest USD 8 mln in 10 year notes that will catalyze shorter-tenor notes. The target market of the fund fits well with the MASSIF investment strategy to serve Tier II and III MFIs. Although the Latin America and Caribbean region has a relatively developed microfinance market with quite some competition and liquidity, most capital flows to Tier I MFIs. In addition to a financial return, the fund also delivers a significant social return.
Why do we fund this investment?
By participating in its first close, FMO ensures that the fund is successfully launched. Discussions are on-going between FMO and GP regarding a capacity development project to support the Global Partnerships’ Green Technology Fund, which will seek to provide people living in poverty with affordable, reliable energy sources through social enterprises such as MFIs and cooperatives.
- Website customer/investment
- http://bi/customerlogos/globalpartnerships.gif
- Region
- Latin America & The Caribbean
- Country
- Latin America & The Caribbean
- Sector
- Financial Institutions
- Effective date
- 12/18/2012
- End date
- 4/4/2023
- Total FMO financing
- USD 8.00 MLN
- Funding
- MASSIF
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C
