Banco Mundo Mujer S.A.
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Banco Mundo Mujer ("BMM") is the #1 microfinance institution in Colombia by loan portfolio and number of borrowers (according to Asomicrofinanzas data as of March 2023), operating as a bank since 2014 but with a lending experience spanning 38 years under the non-profit Fundacion Mundo Mujer ("FMM"), its main shareholder. With Total Assets of ~USD 600mln and a loan book of ~USD 490mln, BMM serves 695,000 clients in most regions of Colombia, predominantly the lower income population and female microentrepreneurs. Its lines of business include lending, savings products and microinsurance. The loan portfolio is concentrated in microcredit 75%, commercial 15% (small enterprises) and consumer 10%, with an average of 57% female borrowers.
What is our funding objective?
FMO will provide a bilateral USD 50mln (USD 30mln committed and USD 20mln uncommitted) 3-yr senior unsecured loan to BMM in non-deliverable COP in combination with a hedging solution. FMO’s financing will allow BMM to support MSMEs and female microentrepreneurs.
Why do we fund this investment?
FMO’s funding will ultimately increase the access to finance for microentrepreneurs in Colombia, particularly groups such as women borrowers and rural microentrepreneurs not served by the traditional banking sector.
What is the Environmental and Social categorization rationale?
E&S category C, based on the loan portfolio composition being mainly microfinance loans, loans to small enterprises and consumer finance. Exposure to high-risk sectors is limited to none. BMM has an environmental and social risk management system (ESMS) in place since November 2021. The ESMS is currently implemented only for the Agri loan product and loans provided to borrowers with activities related to the mining sector.
- Website customer/investment
- https://www.bmm.com.co/
- Region
- Latin America & The Caribbean
- Country
- Colombia
- Sector
- Financial Institutions
- Publication date
- 5/26/2023
- Effective date
- 3/28/2024
- Total FMO financing
- USD 30.00 MLN
- Funding
- FMO NV
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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