Grameen Foundation-Global Partnerships Alliance Secures $1.5 Million for ACODEP

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Oct 2006
Nicaragua , October, 03 2006 - Grameen Foundation and Global Partnerships, two organizations that recently joined forces to fight poverty in Latin America through microfinance, today announced their first deal: US$1.5 million for ACODEP, one of the top three microfinance institutions (MFIs) in Nicaragua. Facilitated by a guarantee of $500,000 issued by Grameen Foundation, the financing will come in the form of a loan from Banco de La Produccion S.A. (BANPRO) and will support ACODEP’s efforts to double its current client base from 51,444 to 118,000 by 2009.

This unique alliance was formed in May 2006 to help expand financial services to the poor in Latin America and the Caribbean by providing funding opportunities, technical assistance and technology consulting to leading MFIs in the region. The institutions benefit from the full range of services offered by both Grameen Foundation and Global Partnerships. For the ACODEP transaction, Global Partnerships conducted a due diligence assessment of ACODEP and Grameen Foundation provided the financing through its Growth Guarantee program. Both worked with ACODEP and the local bank to structure the loan.

“ACODEP shares our strong commitment to giving the poorest people in impoverished communities access to financial services, and we are pleased that this new financing will help to accelerate their expansion into Nicaragua’s most rural areas,” said Alex Counts, President of Grameen Foundation. “With more than 40 percent of Nicaraguans subsisting on less than $1 per day, there is an urgent need to scale up microfinance.”

“ACODEP is expanding economic opportunity for the poorest people in Nicaragua, while at the same time demonstrating impressive organizational growth and performance,” said Rick Beckett, President and CEO of Global Partnerships. “We are proud to be working in partnership to advance our shared mission.”

“We are very well aware of the great experience and excellent reputation of the Grameen Foundation in the microfinance field throughout the world,” said Armando Garcia Campos, Executive President of ACODEP. “That is why being the recipient of a GF Growth Guarantee and a leveraged loan with a local bank will not only allow ACODEP to expand its services to the poorest of Nicaraguans, it is also a distinction and a privilege we are proud of.” Campos is also president of the Katalysis Network, a leading association of MFIs in Central America.

As part of its effort to provide loan products that are relevant to the poorest families in Nicaragua, ACODEP has steadily decreased the size of its loans over the past three years. The poorest borrowers usually have very small businesses that initially only require small amounts of capital, often less than $100. Currently, 80 percent of ACODEP’s loans are below $180, and they provide credit in amounts as low as $20.

About Grameen Foundation

Grameen Foundation is a global non-profit organization that combines microfinance, technology, and innovation to empower the world's poorest people to escape poverty. It has established a global network of 52 partners in 22 countries that has impacted an estimated 11 million lives in Asia, Africa, the Americas, and the Middle East. For more information, please visit www.grameenfoundation.org.About Global Partnerships

Founded in 1994, Global Partnerships (GP) is a pioneer in the fight against poverty around the world through microfinance programs. Microfinance helps people work their way out of poverty by providing the first opportunity many poor people have to start and grow their own small business. GP combines financing opportunities with consulting services and the development of strategic partnerships to help MFIs make the transition to commercial capital markets and maximize their impact on poverty. GP currently works with nine MFIs that reach over 135,000 clients. GP has provided over $8 million in loans, grants, and technical assistance to MFIs since 1999.GP's programs in Latin America are complemented by the Initiative for Global Development (IGD). Founded in the wake of 9/11 by GP CEO Bill Clapp, along with Bill Gates Sr., Daniel J. Evans, John Shalikashvili and Bill Ruckelshaus, IGD is a national network of opinion leaders united in their support for public and private initiatives that contribute to ending global poverty and building a more secure and prosperous world for all. IGD seeks to influence public policy and expand the active engagement of the private sector in effective global development efforts.

For more information, visit www.globalpartnerships.org and www.igdleaders.org.About ACODEP

Founded in 1990, ACODEP is one of the largest MFIs in Nicaragua. Since its early beginnings, ACODEP has worked on facilitating access to credit, managerial education and technical assistance to all segments of the population that demand financial services for the development of their enterprises.

ACODEP is a highly innovative and client oriented organization, which believes the right mix of technology and human touch provides the best tools to increase its outreach to the poor. ACODEP is currently implementing the use of Pocket PCs in order to expand their operations into the rural areas, and to greatly increase productivity and responsiveness to borrowers anywhere in the country.

ACODEP is also preparing to become a regulated MFI, a status which will provide it with the ability to mobilize local savings, a better access to commercial capital and the means to improve customer service. If you want to learn more about ACODEP, visit us at www.acodep.org.ni.



 

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