IIV extends loan in an amount of EUR 9 million through its microfinance fund to MFI in Peru
- Loan amount of 38,000,000 Peruvian Sol, approximately 9.4 million euros, goes to microfinance institution Caja Municipal de Ahorro y Crédito Trujillo (Caja Trujillo)
- First loan of almost 4 million euros was granted to Caja Trujillo at the end of December 2022
The German Impact Investor Invest in Visions (IIV) has extended a loan of 38,000,000 Peruvian Sol - approx. 9.4 million euros - with a term of three years through its managed microfinance fund to the Peruvian microfinance institution (MFI) Caja Municipal de Ahorro y Crédito Trujillo S.A. (Caja Trujillo)
The MFI has been active in the microfinance sector since 1984 and mainly targets micro and small entrepreneurs from the lower and middle strata of the economic pyramid. The loan granted by IIV‘s microfinance fund (IIV Mikrofinanzfonds, ISIN: DE000A1H44T1) is used to refinance the microfinance institution and to continue disbursing loans to existing and potential clients.
From left to right: Enrique Blanco, Advisor at Invest in Visions; Gustavo Romero, Board Member; Carlos Patron, Adjunct CEO Administration; Eduardo Rojas, Adjunct CEO Finance. All from Caja Trujillo.
Help where it is needed
In 2022, the Latin American and Caribbean markets were characterized by ups and downs. The strong expansion in the first half of the year was driven primarily by consumption and supported by the recovery in labor markets. Toward the end of last year, however, economic activity weakened - global growth slowed and financing conditions tightened. Inflation surged in 2022, reaching its highest level in several decades in many countries.
It is hence especially important to give support now and encourage help for self-help. "With the loan, we want to make a contribution to the people on the ground. With our microfinance fund, we support various Sustainable Development Goals (SDGs), including SDG 1, 5, 8 and 10 and so also now together with Caja Trujillo. We are very excited to work even more closely for the benefit of the people of Peru," said Carlos De las Salas Vega, Chief Investment Officer at Invest in Visions.
"We are happy that we have been able to strengthen our cooperation with Invest in Visions even more since December 2022. It allows us to support more clients and give them the possibility of a self-determined life," says Eduardo Rojas Díaz, Joint CEO - Finance at CMAC Trujillo.
Stable microfinance institution
Caja Trujillo holds a CMAC (Caja Municipal de Ahorro y Crédito) license issued by the Peruvian banking regulator. Aiming to become the country's leading CMAC, Caja Trujillo's target market consists mainly of microcredit clients and a smaller share of small and medium sized enterprises. Headquartered in Trujillo, the MFI provides financing to 163,048 credit clients through its network of 95 branches in 18 of the country’s 24 provinces and offers employment to 1,927 Peruvians. The company is wholly owned by the city of Trujillo, the capital of the state of La Libertad in the northern coastal region of Peru.