Symbiotics, the leading market access platform for impact investing, has arranged a USD 14 million Social Bond for Cooperativa de Ahorro y Crédito de la Pequeña Empresa de Cotopaxi (“Cacpeco”).
Providing financing to underserved people and communities has been the core of Cacpeco’s contribution to the Ecuadorian society. The issuance of this Social Bond emphasizes another step in Cacpeco’s social journey that started in 1988 in Latacunga, Cotopaxi, Ecuador. It shows the ability to align to international standards and attract funding from international investors. The Social Bond is fully aligned to the International Capital Market Association (ICMA) Social Bond Principles.
The proceeds will be used to finance affordable housing mortgages, stimulating home-ownership and contributing to the reduction of the housing deficit in Ecuador. Micro loans up to USD 10,000 to microenterprises and SME loans up to USD 1 million to small and medium enterprises will generate employment, financial inclusion and improving the general funding available to this market.
“Symbiotics is delighted to launch the first Social Bond for a cooperative in Ecuador. With this landmark transaction, we aim to help reduce inequalities while spurring sustainable and inclusive growth.”, said Gabriela Gil, Symbiotics Investment Analyst for the Latin America and the Caribbean Markets.
“After a rigorous process to receive this Social Bond, significant impacts are noted on our stakeholders. We will continue contributing to financial inclusion through the provision of microloans to women, specifically boosting our highly social financial products called “Créditos Creer” and “Grupal Mujeres”, as they link education, savings and cooperative spirit. Another important impact will be serving members with limited access to housing loans. We will deliver solutions for the construction, purchase and remodeling of houses or land, for a 15-year term at a nominal annual rate of 9.90%.”, stated Virginia Escobar, CEO of Cacpeco.
The following SDGs are promoted with this Social Bond issuance:
This Social Bond is issued via Symbiotics sponsored bond issuance platform (Micro, Small & Medium Enterprises Bonds S.A.) under its Sustainable Bond Framework, which was certified in December 2019 and November 2021 by DNV GL. The bond is listed on the Securities Official List of the Luxembourg Stock Exchange and displayed on the Luxembourg Green Exchange, in the Social Bond section. The proceeds are to be fully used towards a 4-year tenor, senior unsecured loan facility to Cacpeco.
Link to: Sustainable Bond Framework for Symbiotics
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About Symbiotics
Symbiotics is the leading market access platform for impact investing, dedicated to financing micro- small and medium enterprises and low- and middle-income households in emerging and frontier markets. Since 2005, Symbiotics has structured and originated some 5,000 deals for over 490 companies in almost 90 emerging and frontier markets representing more than USD 7.5 billion. These investments have been purchased by more than 25 fund mandates and more than 50 third party specialized fund managers, forming a growing ecosystem and marketplace for such transactions. symbioticsgroup.com
About Cacpeco
Cacpeco, with 33 years at the service of its 197,859 members, 243 employees, 300 suppliers and the community at large in five provinces of central Ecuador: Cotopaxi, Chimborazo, Los Ríos, Pichincha and Tungurahua, operates through 20 branches under the supervision of the Superintendency of Popular and Solidarity Economy. It serves mainly microentrepreneurs, public and private employees as well as retirees. Managed under profound sustainability parameters, Cacpeco addresses its members needs while supporting and ensuring their sustainable growth. Among members, female household heads stand out, served through FUNDASOF, the executing arm of the Cooperative’s social purpose. Cacpeco, national reference for its economic, social and environmental work, has been recognized in 2021 by CEMEFI-CERES as a socially responsible company. cacpeco.com
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For more information, contact:
Samy Derradji, Corporate Communication Manager, Symbiotics
samy.derradji@symbioticsgroup.com
Sofía Riofrío, Treasurer, Cacpeco
sriofrio@cacpeco.com
