Triple Jump news - Tuesday, October 18, 2011

Shareholder in Peru and Tajikistan

OCTOBER 2011 - On behalf of the ASN-Novib Microkredietfonds, Triple Jump has become a shareholder in EDPYME Solidaridad, a microfinance institution (MFI) in Peru, and in LLC IMON International, an MFI in Tajikistan.

Solidaridad

EDPYME Solidaridad (Solidaridad), as it is currently known, was created from the purchase of the MFI Solidaridad by the NGO MFI Caritas in late 2007. The regulated, non-deposit taking Peruvian MFI operates via individual and group lending methodologies, and has an important outreach primarily in the central and southern Andes regions, and to a lesser extent the country´s coastal areas. As of August 2011 Solidaridad the MFI boasted a total loan portfolio of USD 30 million and 20,000 clients.

The MFI originally became a Triple Jump client in 2010 through the disbursement of a USD 2 million convertible senior loan. Triple Jump/ANMF (ASN Novib Microfinance Fund) became a shareholder (12.5% stake) in the MFI through an equity investment of 3 million Peruvian Nuevo Soles (equivalent – EUR 770.000) in July 2011.

Apart from providing a fresh capital injection, Triple Jump is adding value to the MFI through its participation on the board of directors. A Senior Equity Investment Officer from the Triple Jump team is currently one of six members of the board of directors. Over the last year, Triple Jump made successful exits in two other regulated deposit-taking Peruvian MFIs. These successful exits in fully mature MFIs opened up space in the ANMF for the recent investment in the emerging Solidaridad, reflecting the aim of the fund to be active where its impact is greatest.

IMON

IMON is the largest supplier of microfinance services in Tajikistan, covering nearly 40% of the Tajik market. As stated on the IMON website, the Tajik MFI is proud about its new shareholder Triple Jump: ‘Alliance with such an authoritative investment company will create new strategic development perspectives for IMON’.

Erik Geurts, Senior Equity Investment Officer at Triple Jump, expects that the ASN-Novib investment will contribute to the further development of IMON. Mr. Geurts recalls a similar experience in Kyrgyzstan where ASN-Novib entered as a shareholder in Bai Tushum in 2009.

IMON (LLC Microlending Organization ‘IMON INTERNATIONAL’) is an MFI providing financial services to the most vulnerable population groups in Tajikistan. The history of IMON dates back to 1999, when the National Association of Business Women of Tajikistan, in partnership with Mercy Corps, founded the ‘Microloans in Tajikistan’ programme and for the first time applied international microfinance techniques to the Tajikistan market.

IMON grew into the largest microfinance organisation in Tajikistan, with seven branches and 33 field offices, covering 28 regions of the country. Since the beginning, IMON focused on entrepreneurs working in small wholesale and retail trade and services, as well as on owners of small production facilities. Since July 2005, IMON has disbursed over 98,000 loans totalling more than USD72 million.