IDB, Oikocredit, Incofin and Calvert Foundation Back Credit Cooperative in Ecuador
Thursday, February 17, 2011
The Inter-American Development Bank (IDB) has closed a $9 million syndicated loan with Jardin Azuayo, a community-based savings and loan cooperative in Ecuador. The loan will fund the co-op’s Credits for Community Development project, which channels funds to municipalities, community organizations and other local entities to finance improvements in social infrastructure such as schools and roads.
The loan consists of an A Loan of US$3 million, funded by the IDB’s Opportunities for the Majority Initiative, and a B Loan of $6 million, funded by a group of leading impact investors, comprised of Incofin, Oikocredit and Calvert Foundation.
Oikocredit provided $3 million while Incofin provided $2 million and Calvert Foundation another $1 million for the B Loan. The IDB’s portion of the loan has a tenor of 7 years, while the B Loan has a tenor of 5 years. The transaction marks the longest tenor ever for an international syndication to an Ecuadoran microfinance institution. The IDB was the lead arranger in this transaction.
The Jardin Azuayo Cooperative is based in a largely rural area of remote villages. Its microloans support a wide variety of projects, from educational programs to infrastructure improvements and development of small businesses. Through a branch system, it tailors its products and services to meet the specific needs of members in each of its communities.