MicroVest Announces $4 Million Loan to Jardin Azuayo to Support MSME Growth in Ecuador

MicroVest Capital Management (MicroVest) today announced a $4 million investment in Cooperativa de Ahorro y Crédito Jardín Azuayo to facilitate expanded access to financial services for rural microentrepreneurs and SMEs in Southern Ecuador.

Financial cooperatives, which primarily originate microcredit and consumer loans, comprise approximately 25% of assets in Ecuador’s financial sector. They cater to the poorest segments of the population, and in recent years, the sector has expanded rapidly. This growth is attributed to several factors, including the ability to offer higher rates on deposits. (Deposits for financial cooperatives in Ecuador increased from 24% of the market in January 2016 to 34% as of February 2021 (IMF)).

Originally founded in 1996, Jardin Azuayo is a savings and credit cooperative that offers a range of financial products to underserved SMEs, self-employed microentrepreneurs, and salaried workers. Today it is the third largest cooperative in Ecuador by assets and operates 68 branches across the country. Jardin Azuayo serves approximately 687,000 members, of whom approximately 128,000 are active borrowers.

This is MicroVest's second investment in the company.

DISCLOSURE INFORMATION

The information contained here has been written for MicroVest Capital Management, LLC (“MicroVest”) and no representation or warranty, expressed or implied is made by MicroVest as to the accuracy or completeness of the information contained herein. The portfolio company highlighted is for informational purposes only and does not represent all of the portfolio holdings and it should not be assumed that investments in the portfolio company identified and discussed were or will be profitable. The information presented on this page is for informational purposes only and is neither an offer to sell nor a solicitation of an offer to purchase an interest in any MicroVest product (the “Funds”), and nothing herein should be construed as such. Any such offer or solicitation will be made only by means of delivery of a definitive private offering memorandum which contains a description of the significant risks involved in such an investment. Prospective investors should request a copy of the relevant Memorandum and review all offering materials carefully prior to making an investment.