Project detail - BANCO FIE S.A.

BANCO FIE S.A.

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Who is our client

Banco FIE is one of the leading banks specialized in microfinance in Bolivia. It obtained its bank license in 2010 and is owned by CONFIE (54%), DWM Funds (10.8%), Incofin (10.4%) and Oikocredit (6.9%). Total assets amount to around US$ 1.2 bln with core activities in micro-lending, savings products, money transfers, social security payments, tax coverage, and facilitation of remittances. The bank has a high presence in rural areas and is the largest microfinance provider in the country with a market share of 9.7%

Funding objective

The purpose of the two tranches is to enable Banco FIE to provide financing to micro-, small- and medium-sized enterprises in Bolivia. With FMO's funds, Banco FIE will be able to offer more financial services to MSME entrepreneurs in urban, semi-urban, as well as rural areas. This is in line with Banco FIE's strategy to expand further into rural areas to maintain its leading position in the microfinance market.

Why we fund this project

FMO supports Banco FIE to maintain a diversified funding base and to expand its loan portfolio to reach the under-served MSMEs in Bolivia. FMO provides stability on the medium and long term as Banco FIE's funding base is mainly based on local deposits from a favourable, but potentially volatile economic environment.

Region
Latin America & The Caribbean
Country
Bolivia
Sector
Financial Institutions
Signing date
6/28/2013
Total FMO financing
USD 5.00 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
C