Fundeser becomes financiera

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29.10.2014
The Foundation for Rural Economic Development Partner (Fundeser), originally a Nicaraguan NGO providing credit and technical assistance to small holders, has launched its operations as a fully-fledged financial institution, a financiera. The transformation into a financiera, regulated by the Nicaraguan Superintendence for Banks and other Financial Institutions, is paramount to allowing Fundeser to achieve greater scale and offer a wider range of services to rural populations. The transformation will allow to work in a secure environment and systematise all procedures and manuals that were not adequately developed before.

The recent recognition as a financiera is the result of successful collaboration and efforts of Fundeser’s staff and management with several development finance institutes and investors, such as BIO, the Dutch Entrepreneurial Development Bank (FMO) , the Belgian Microfinance Fund Advisor, Incofin Investment Management (IM), as well as the Inter-American Development Bank and the International Finance Corporation. BIO has been involved in providing technical assistance grants to support the transformation process:

- one technical assistance project financed by BIO, FMO and Fundeser and managed by Incofin IM, was aimed at accompanying Fundeser’s staff throughout the transformation process into a regulated entity, generating the relevant capacity to support the change in the short and medium term.

- a second technical assistance project co-financed by BIO focused on 3 areas: to provide Fundeser with transformation advice; implement an activity-based costing model; and implement an integrated branch management system.

 

Incofin IM introduced BIO to Fundeser early June 2012, in the framework of the cooperation agreement signed between both institutions. Originally BIO supported Fundeser through the Rural Impulse Fund, managed by Incofin IM. In 2013, BIO approved a senior loan for an amount of USD 1 million to the benefit of Fundeser to finance the growth of its microfinance portfolio.

Fundeser started as a non-profit microfinance institution (MFI), founded in 1997. In July 2014, the Institution counted with 19 branches nationwide, a loan portfolio of €16.43 million and 17,500 borrowers. The Institution primarily targets rural area offering individual and group loans for microenterprise, agriculture, livestock, and housing consumption. With a rural outreach of 79% of its portfolio, Fundeser stays true to its mission: “to contribute to the social and economic development of small and medium agricultural producers and micro entrepreneurs”.

More information on BIO’s investment in Fundeser.

More information on Fundeser

More information on Incofin

 

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