RIF II enters into the capital of Edpyme Solidaridad in Peru

RIF II enters into the capital of Edpyme Solidaridad in Peru

2012/09/03

Incofin IM’s Rural Impulse Fund II has acquired an 8.2% equity stake in Edpyme Solidaridad from Peru. RIF II is the second institutional investor to become shareholder of Edpyme Solidaridad, after ASN-Novib joined in July 2011. The MFI, established in 1997, mainly operates in the rural Andean provinces in Central Peru. After 6 years of cooperation between Incofin IM and Edpyme Solidaridad, Incofin will now also take up a seat in the institution's Board of Directors.

In 2007, Edpyme Solidaridad, was acquired by the development and social service organization Caritas del Peru. Caritas del Peru is part of Caritas Internationalis, a network of organizations operating in over 200 countries, promoting 'a more just society in which people live in peace and their dignity and rights are being protected'. With the objective of obtaining a license to operate as a regulated microfinance entity, Caritas bought Edpyme Solidaridad, a non-bank financial institution regulated by the Superintendencia de Bancos, Seguros y AFP (SBS).

Edpyme Solidaridad shows a strong and genuine rural outreach. It is mainly present in Andean provinces, of which some (e.g. Ucayali and Pasco) are also of the poorest of the country and are being served by few MFIs due to the higher costs of implementation. Solidaridad currently operates 28 outlets (17 branches and 11 smaller points of sale, PoS). All PoS are located in small rural districts, mostly in Andean valleys, connecting the rural towns. As such it allows Solidaridad to be closer to its clients and increase its rural outreach.

The MFI's total outstanding portfolio in June 2012 stood at USD 35.5 million. Solidaridad serves more than 23,000 clients and employs close to 300 people. Edpyme Solidaridad offers individual lending, group lending and village banking. With the objective to broaden its product offering and better meet the needs of its clients, Solidaridad started recently providing agriculture loans, housing loans and a limited amount of consumer loans.