MICROCAPITAL BRIEF: BNP Paribas Loans $1.9m to Microfinance Institutions Fundación Espoir of Ecuador, Amret of Cambodia

Posted on: MICROCAPITAL BRIEF,Tuesday, September 20, 2011
» Posted by Nisha Koul in Category: Asia, Deals, Investment Funds, Latin America at 11:30 am
http://www.microcapital.org/microcapital-brief-bnp-paribas-loans-1-9m-to-microfinance-institutions-fundacion-espoir-of-ecuador-amret-of-cambodia/

BNP Paribas, a financial service provider based in France, recently made loans totaling the equivalent of USD 1.9 million to two microfinance institutions (MFIs): Fundación Espoir (Espoir) of Ecuador and Amret Company Limited (Amret) of Cambodia [1].

In Ecuador, BNP Paribas loaned USD 1 million to Espoir, a nongovernmental organization (NGO) established in 1992. Espoir is involved in the economic and social development of poor female entrepreneurs including providing health and financial education. As of 2010, Espoir reported to the Microfinance Information Exchange (MIX), the US-based data provider, total assets of USD 29.8 million, a gross loan portfolio of USD 27.5 million, 53,100 borrowers, return on assets (ROA) of 3.79 percent and return on equity (ROE) of 25.3 percent.

In Cambodia, Amret, previously known as Ennetean Moulethan Tchonnebath (EMT), received a local-currency loan equivalent to USD 900,000 from BNP Paribas. Amret started operating as a private MFI in 2001 and provides individual lending as well as saving services in rural and semi-urban areas. In 2010, Amret reported to MIX total assets of USD 87.8 million, a gross loan portfolio of USD 67 million, approximately 223,000 borrowers, ROA of 5.91 percent and ROE of 25 percent.

By Nisha Koul, Research Associate

About BNP Paribas: Resulting from the 2000 merger between two French banks, Banque Nationale de Paris (BNP) and Paribas, BNP Paribas is a financial services provider headquartered in Paris. The bank has operations in 84 countries and focuses on retail banking, investment banking and wealth management. As of June 2011, it reported total assets of USD 2.7 trillion.

About Fundación Espoir: Fundación Espoir (Espoir), a nongovernmental organization (NGO) that was established in Ecuador in 1992, is involved in the economic and social development of poor female entrepreneurs including providing health and financial education. As of 2010, Espoir reported to the Microfinance Information Exchange (MIX), the US-based data provider, total assets of USD 29.8 million, a gross loan portfolio of USD 27.5 million, 53,100 borrowers, return on assets (ROA) of 3.79 percent and return on equity (ROE) of 25.3 percent.

About Amret Company Private Limited: Amret Company Private Limited (Amret), formerly known as Ennetean Moulethan Tchonnebath (which means “credit in rural area” in English) was established in Cambodia in 1991 as a project of French NGO Groupe de Recherche et D’Echange Technologiques (GRET). It became a private limited company in 2000 and received its license to operate as a microfinance institution (MFI) in 2001. In 2010, AMRET reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 87.8 million, a gross loan portfolio of USD 67 million, approximately 223,000 borrowers, return on assets (ROA) of 5.91 percent and return on equity (ROE) of 25 percent.

Sources and Additional Resources:

[1] Press release submitted by BNP Paribas to MicroCapital September 2011.

MicroCapital.org story, January 25, 2011, “MICROCAPITAL BRIEF: BNP Paribas Loans $4.65m to The Lead Foundation to Support Microfinance in Egypt, United States Agency for International Development Egypt (USAID/Egypt) Guarantees 50% of Principal,” http://www.microcapital.org/microcapital-brief-bnp-paribas-loans-4-65m-t...

MicroCapital Universe Profile: BNP Paribas, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=BNP...

MicroCapital Universe Profile: Fundación Espoir, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fun...

MicroCapital Universe Profile: Amret Private Company Limited: http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=AMRET

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