Social impact was clearly the driver behind FMO's first investment into the US$25 million Global Partnership Social Investment Fund 2010 (GP). Based in Managua, Nicaragua and Seattle, USA, GP is a vehicle which offers loans and investments to microfinance institutions (MFIs) that that work according to the "Microfinance Plus" model in Latin America. This innovative model entails providing not only credit, but also healthcare and other important social services to poor and remote communities in the region.
FMO's maiden US$4.4 million investment will help GP target so-called Tier II and Tier III MFIs and cooperatives which can deliver impactful, sustainable programs that have immediate and significant social impact, especially for women. In fact, 65% of the fund's clients are women. GP prioritizes its investments to five specific "impact areas": health care, rural livelihoods, micro-entrepreneurship, women's empowerment and green technology.
The benefits of the programs on the lives and health of the women and men in the region are tracked and measured by GP's Social Impact Committee which use self-developed metrics to assess the success of the investments.
(Pictures and video are a courtesy of Global Partnerships)
|Investment:||MASSIF US $1.4 million subordinated loan & US $3.1 million senior loan contracted in March 2011|