IDB lends $5m to Global Partnerships for microfinance investments in LA

Microfinance Focus, Oct 7, 2010: Inter-American Development Bank and Seattle based Global Partnerships have signed a $5 million loan on Wednesday in Uruguay to capitalize the organization’s Social Investment Fund 2010.

The Global Partnerships Social Investment Fund 2010, which raised a total of $20 million from a number of private and institutional investors, will invest in microfinance institutions that are going beyond providing working capital loans by bundling traditional microfinance lending with the provision of other services. 

Luis Alberto Moreno, President of the IDB, and Mark Coffey, Chief Investment Officer of Global Partnerships, signed the agreement during the XIII Inter-American Microenterprise Forum.

With the support of the IDB, Global Partnerships is helping establish a new investment class in the region, in which investors receive both social and economic returns. Among the beneficiaries of SIF 2010 are Pro Mujer, Mexico based FRAC and Honduras-based Comixmul.

Global Partnerships, has established three prior investment funds, which provide loans to a select portfolio of microfinance institutions (MFIs). For SIF 2010, it is prioritizing MFIs that offer “microfinance-plus” programs, such as health services, professional training and microinsurance, to their clients.

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