ImpactAlpha, June 5 – Ecuador’s Banco Solidario, among the first banks in Latin America to specialize in microcredit, has bought out three of its long-term impact investors, paying an undisclosed amount for their stakes.
The Netherlands’ Oikocredit and Triodos, along with MicroVest Capital Management, based in Bethesda, Maryland, each sold their holdings to Banco Solidario for an undisclosed amount.
Banco Solidario was started in 1996 to provide small business loans, savings accounts and insurance to Ecuadorians without access to traditional financial services. It has around 400,000 customers, about 40% of whom earn just over the national minimum wage.
- Long-term investors… Oikocredit and MicroVest have had lending relationships with the bank for more than 10 years. MicroVest became a shareholder in 2011. Details of their exit were not announced.
- Ongoing support… All three investors will continue to work with the bank as lending partners.