Impact Investment Profile

Investor

SNS Impact Investing

Investee

Pro Mujer Bolivia

SNS Impact Investing invests globally for social impact and market rate financial returns, focusing on microfinance and agriculture. Pro Mujer Bolivia is an established microfinance institution that provides credit services, education, and healthcare to poor women in Bolivia. SNS Impact Investing's BOB 21 million (USD 3 million) senior loan made in local currency will provide working capital to the microfinance institution so it can continue to expand its client base.

Investor Targeted Impact

Increase access to financial services for poor women

Investor

Name SNS Impact Investing
Investor description SNS Impact Investing is the development investments entity of SNS Asset Management, a leader in socially responsible institutional asset management. Through professionally-managed funds, SNS Impact Investing invests in microfinance and agriculture businesses around the world. SNS Impact Investing creates value for clients, investees, and society by developing, promoting, and/or distributing impact investment solutions. These solutions aim to deliver market rate returns and social impact.

Investee

Name Pro Mujer Bolivia
Sector Financial Services; Microfinance
Geography Latin America and the Caribbean - Bolivia
Investee business model Pro Mujer Bolivia is the oldest and one of the largest programs of Pro Mujer International, a microfinance network focused on Latin America. Established in 1990, Pro Mujer Bolivia provides impoverished women with loan capital for their small-scale businesses. It is a pioneer in implementing group lending in the country. Credit is provided through group-oriented communal associations composed of 18 to 28 women empowered to make all loan decisions, a structure that appeals to women accustomed to working in community groups. Pro Mujer Bolivia also offers clients the opportunity to save a portion of their profits via the communal association structure. Pro Mujer Bolivia caters to the base of the pyramid (BoP), as reflected in its average loan size, which is one of the lowest among peer microfinance institutions (MFIs). The organization is recognized for its strong social commitment and additional non-financial service products, particularly those of business training and healthcare.
Motivations for investment SNS Impact Investing saw Pro Mujer Bolivia as an attractive investment because of its strong financial profile, competitive advantage, and history of good governance.Pro Mujer Bolivia is a top-rated MFI in Bolivia (BBB Fitch/B+ Microrate). Its group lending methodology results in low costs per borrower, strong asset quality, appropriate credit risk coverage, and solid solvency levels. While Bolivia is a competitive market for microfinance, Pro Mujer Bolivia has created a strong niche through good client service. Pro Mujer Bolivia serves roughly 90,000 clients, making it one of the largest MFIs in Bolivia by number of clients. Its client volume allows it to absorb high operating costs, one reason that it has one of the lowest costs per borrower among its MFI peers. SNS Impact Investing was also attracted to the MFI's strong demonstration of social commitment, experienced management team and Board of Directors, and wide-ranging support available through the international Pro Mujer network.

Investment

Instrument Debt - local currency senior loan
Investment size BOB 21 million (USD 3 million - made through two funds: USD 1.5 million through SNS Institutional Microfinance Fund (SIMF) I and USD 1.5 million through SIMF II)
Source of deal The opportunity was sourced by investment manager Developing World Markets, which manages SIMF I and SIMF II.
Stage of company at time of investment Mature
Purpose of investment This investment was used to expand Pro Mujer Bolivia's working capital so it could increase the number of clients at the BoP served.
Investment impact objectives SNS Impact Investing's overarching objective is to provide capital to expand the positive impact of MFIs so they can meet the financial needs of the working poor who have limited access to financial services. Providing Pro Mujer Bolivia with additional working capital expands access to financial services for women living at the BoP.
Social and environmental metrics tracked on investment SNS Impact Investing tracks social performance based on a non-financial scorecard. This scorecard includes the following IRIS metrics (IRIS alignment noted in parentheses): Client Type (IRIS aligned - PD7993)Clients (IRIS aligned - PI7094)Client Individuals: Female (IRIS aligned - PI8330)Client Individuals: Rural (IRIS aligned - PI1190)Client Retention Rate (IRIS aligned - PI9319)Client Exit Surveys (IRIS aligned - OI1323)Client Protection Policy (IRIS aligned - OI4753)Product/Service Detailed Type (IRIS aligned - PD1516)Non-financial Services Offered - Partnership (IRIS aligned - PD9681)Other Financial Services Offered (IRIS aligned - PD5098)Loan Portfolio Outstanding- Number of Investments (IRIS aligned - PI1478)Loan Portfolio Outstanding- Value of Investments (IRIS aligned - PI7569)Total Voluntary Savings Accounts (IRIS aligned - PI6439)Compulsory Deposits (IRIS aligned - PD9337)Effective Interest Rate (IRIS aligned - PI7467)Microfinance - Educational Services Offered (IRIS aligned - PD1796)Microfinance - Enterprise Services Offered (IRIS aligned - PD1853)Microfinance - Health Services Offered (IRIS aligned - PD3679)Microfinance - Women Empowerment Services Offered (IRIS aligned - PD6897)Permanent Employees (IRIS aligned - OI8869)Full-time Employees: Female Managers (IRIS aligned - OI1571)Full-time Employees: Managers (IRIS aligned - OI8251)Departing Employees: Full-time (IRIS aligned - OI3653)Departing Permanent Employees (IRIS aligned - OI4499)Wage Equity (IRIS aligned - OI1582)Financial Services Areas of Training (IRIS aligned - OI3943)Social Responsibility to Financial Services Clients (IRIS aligned - OI7783)Employees Dedicated to Social and Environmental Performance (IRIS aligned - OI6370)Environmental Management System (IRIS aligned - OI1254)Environmental Policies for Financial Services Clients/Enterprises (IRIS aligned - PD7932)Social Impact Objectives (IRIS aligned - OD6247)Target Beneficiary Setting (IRIS aligned - PD6384)Target Beneficiary Socioeconomics (IRIS aligned - PD2541)Social Performance Incentives (IRIS aligned - OI4953)Social Performance Incentives: Incentive Areas (IRIS aligned - OI9258)Social Performance Incentives: Participants (IRIS aligned - OI8334)Social Performance Management Training (IRIS aligned - OI4136)Social and Environmental Board Committee (IRIS aligned - OI1984)Market Research on Clients (IRIS aligned - OI8113)Market Research on Clients: Research Frequency (IRIS aligned - OI3857)Market Research on Clients: Research Process (IRIS aligned - OI9714)Board of Directors (IRIS aligned - OI1075)Board of Directors: Female (IRIS aligned - OI8118)Female Ownership (IRIS aligned - OI2840)Minority/Previously Excluded Ownership (IRIS aligned - OI7194)Mission Statement (IRIS aligned - OD2735)Legal Structure (IRIS aligned - OD2999)Taxes (IRIS aligned - FP7345)Local Compliance (IRIS aligned - OI9379)Location of Organization's Operating Facilities (IRIS aligned - OD1777)Code of Ethics (IRIS aligned - OI1806)Fair Compensation Practices (IRIS aligned - OI2419)Community Service (IRIS aligned - OI4324)

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