Fundación Genesis Empresarial
Status: Investment in contracting phaseWhy 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 prospective customer?
Fundación Genesis Empresarial is a non-profit and non-regulated Micro Finance Institution founded in 1988 in Guatemala with a total loan portfolio of USD 384mln as of March 2023. The foundation’s mission is to reduce inequalities among the lowest income segment of the country, not served by commercial banking. Genesis has 340,000 clients, out of which 72% are women entrepreneurs and 76% are served in rural areas of Guatemala.
What is our funding objective?
FMO’s proposed funding of USD 25mln equivalent in local currency (Guatemalan Quetzales) is part of an A/B loan syndication arranged by FMO for up to USD 85mln. Proceeds will help Genesis to continue supporting microentrepreneurs across the country.
Why do we want to fund this investment?
FMO focuses on reducing inequalities and promoting sustainable economic growth in emerging markets. This facility will help the biggest microfinance institution of Guatemala to keep serving productive microbusinesses, a segment not targeted by commercial banking. FMO brings additionality to Genesis by providing a long-term funding denominated in local currency, implying the absence of FX risks.
What is the Environmental and Social categorization rationale?
FMO analyses risks from different perspectives and assessments. In the case of microfinance investments, the E&S classification is typically low because the exposure generally is limited to retail and micro-entrepreneurs. The risks that might come with microfinance investments, such as, among other, over-indebtedness, transparency of interest rates, responsible pricing, are covered by FMO in other assessments such as Client Protection Principles (CPPs). In case of high contextual risk, a human right assessment can be carried out. Genesis 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.
- Website customer/investment
- https://genesisempresarial.org/
- Region
- Latin America & The Caribbean
- Country
- Guatemala
- Sector
- Financial Institutions
- Publication date
- 10/11/2023
- Deadline for feedback
- 11/10/2023
- Total FMO financing
- USD 25.00 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