Montreal, March 5, 2020 - FinDev Canada is partnering with Développement international Desjardins (DID) through a loan transfer from Export Development Canada as part of a facility that supports microfinance institutions in Latin America. The loan is backing institutions that provide more than 1,500 jobs in rural areas and benefit mostly low-income rural clients by providing them with access to quality financial services.
The opportunity for this partnership originated through the existing collaboration between DID and FinDev Canada’s parent company, Export Development Canada. Given the affinity in terms of mission and objectives between FinDev Canada and DID, EDC has transferred this loan to FinDev Canada’s managed assets.
This transfer gives FinDev Canada the opportunity to work with a Canadian institution that is active in its priority regions: Latin America and the Caribbean and Sub-Saharan Africa. DID is a pioneer in microfinance, with 50 years of experience in emerging and frontier markets to increase empowerment among disadvantaged populations by facilitating access to secure and diversified financial services that meet their needs.
“This operation is a great example of how we can work with Canadian financial institutions that leverage their expertise for sustainable and inclusive growth in our regions of interest”, said Suzanne Gaboury, Chief Investment Officer at FinDev Canada. “Our collaboration with such a reputable Canadian institution with significant knowledge of the Latin American market is very promising, and it allows us to reach the most underserved through intermediary financial institutions.”
“DID has been actively engaged in impact investment for more than 20 years, and experience shows that our investment activities have provided strong leverage for the development of the inclusive finance institutions we supported, but also for the families and entrepreneurs they serve” said Gerardo Almaguer, Chief Executive Officer at DID. “We look forward to working with FinDev Canada and joining efforts to increase financial inclusion and support the achievement of the Sustainable Development Goals.”
Financial inclusion in marginalized communities
The facility is supporting microfinance programs in Colombia and Ecuador, through two local financial institutions. These institutions serve close to 150,000 clients, the majority of whom are women (50% and 70% of the institutions’ client base, respectively) and individuals from underserved rural areas, that tend to be financially excluded. At the employee level, each of the local financial institutions have achieved gender parity, with an equal number of men and women employees.
About FinDev Canada
The Development Finance Institute Canada Inc., operating under the FinDev Canada brand, is a Canadian institution dedicated to providing financial services to the private sector in developing countries with the aim of combating poverty through economic growth by focusing on three main themes: economic development through job creation, women economic empowerment, and climate change mitigation. The Development Finance Institute Canada Inc. is a wholly owned subsidiary of Export Development Canada (EDC). Find out more about FinDev Canada here.
About Développement international Desjardins (DID)
For 50 years, DID has helped build more inclusive finance sectors by sharing the knowledge and expertise of Desjardins, Canada’s largest financial cooperative, with developing and emerging countries. Acting as a consulting expert and impact investor, DID works to improve universal access to a range of secure financial services and increase both individual and collective wealth, with a focus on women and youth. DID’s projects also support several Sustainable Development Goals.
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