📋 Tender Overview
Website customer/investment
https://genesisempresarial.org/
Region
Latin America & The Caribbean
Country
Guatemala
Sector
Financial Institutions
Publication date
10/11/2023
Effective date
5/14/2024
Total FMO financing
USD 23.00 MILLION
Funding
FMO NV
Environmental & Social Category
(A, B+, B or C)
C
Who is our 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 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.
