Fundación Génesis Empresarial

Debt : May 2024

BIO has granted a USD 20 M loan to Fundación Génesis Empresarial, a Guatemalan microfinance institute.

Amount

$ 20,000,000.00

Type of investment

Debt

Development impacts

Local economic growth
Financial inclusion
Food security & rural development
Promotion of ESG best practices

Beneficiary locations

Latin America and Caribbean: Guatemala

Investment field

Financial Institutions

Activity

KK.64.191 Microfinance institution

Organisation

Fundación Génesis Empresarial

Website

https://www.genesisempresarial.org/

Domicile

Guatemala

Génesis is a non-profit foundation active in Guatemala. It was founded in 1988 with the mission to provide access to finance and technical assistance to microentrepreneurs and small enterprises in rural communities. The nature of Génesis allows it to preserve the strong social mission of the institution while setting human capital, client social development (via financial inclusion) and good governance (including E&S) standards at the centre of its strategy.

The MFI stands out from others in the market as it puts a strong emphasis on its client-centric approach, on digitalized technology solutions and on distribution channels. Next to its financial services offering, it provides constant advice and training (technological inclusion, financial education, and quality of life) to guide entrepreneurs to better manage their businesses and improve the living conditions of their families.

Development impacts

Local economic growth
Increasing access to credits and basic insurance products for micro and small enterprises, in combination with non-financial services (i.e. financial literacy, business training) to promote improvement in the business and living conditions of clients.
Financial inclusion
Enhancing access to adequate financing for un(der)served and/or unbanked entrepreneurs, mostly first-time clients, low average loan size. Significant share of clients are rural and/or women entrepreneurs.
Food security & rural development
Funding (directly) the growth of FGE's strong rural outreach/portfolio and supporting its strategic objective to strengthen its specific approach/products for agricultural value chain clients.
Promotion of ESG best practices
Génesis is an MFI with (i) solid social performance practices i.e. CPP Gold Certification and a “5 stars” social rating with stable outlook, and (ii) “Social balance sheet” approach through which it has already established policies, and control/measurements mechanisms about ESG/development issues.

E&S Impact

Génesis is classified as an FI-C in accordance with FMO’s sustainability policy given the minimal or no adverse environmental and social risks and/or impacts.

Given the quality of Génesis' Client Protection Principles performance, no further improvements were identified during the Due diligence.

Risk Category: C