Banco Mundo Mujer S.A. (FMO-62377)

Countries
  • Colombia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Netherlands Development Finance Company (FMO)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
C
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Banco Mundo Mujer ("BMM")
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ FMO website

Updated in EWS Apr 19, 2024

Disclosed by Bank May 26, 2023

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

WHO IS OUR CUSTOMER

Banco Mundo Mujer ("BMM") is the #1 microfinance institution in Colombia by loan portfolio and number of borrowers (according to Asomicrofinanzas data as of March 2023), operating as a bank since 2014 but with a lending experience spanning 38 years under the non-profit Fundacion Mundo Mujer ("FMM"), its main shareholder. With Total Assets of ~USD 600mln and a loan book of ~USD 490mln, BMM serves 695,000 clients in most regions of Colombia, predominantly the lower income population and female microentrepreneurs. Its lines of business include lending, savings products and microinsurance. The loan portfolio is concentrated in microcredit 75%, commercial 15% (small enterprises) and consumer 10%, with an average of 57% female borrowers.

WHAT IS OUR FUNDING OBJECTIVE?

FMO will provide a bilateral USD 50mln (USD 30mln committed and USD 20mln uncommitted) 3-yr senior unsecured loan to BMM in non-deliverable COP in combination with a hedging solution. FMO's financing will allow BMM to support MSMEs and female microentrepreneurs.

WHY DO WE FUND THIS INVESTMENT?

FMO's funding will ultimately increase the access to finance for microentrepreneurs in Colombia, particularly groups such as women borrowers and rural microentrepreneurs not served by the traditional banking sector.

WHAT IS THE ENVIRONMENTAL AND SOCIAL CATEGORIZATION RATIONALE?

E&S category C, based on the loan portfolio composition being mainly microfinance loans, loans to small enterprises and consumer finance. Exposure to high-risk sectors is limited to none. BMM has an environmental and social risk management system (ESMS) in place since November 2021. The ESMS is currently implemented only for the Agri loan product and loans provided to borrowers with activities related to the mining sector.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Banco Mundo Mujer S.A. Client Finance

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No contacts available at the time of disclosure


ACCESS TO INFORMATION

As part of FMO's ex-ante disclosure (disclosure of transactions before contracting), you can send requests or questions for additional information to: disclosure@fmo.nl

ACCOUNTABILITY MECHANISM OF FMO

Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW). A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism

How it works

How it works