Agrofinanzas is Recognized by G20 as One of the 15 Leading Innovative Companies on Inclusive Business in the World
SAN JOSE DEL CABO, Mexico, June 18, 2012 /PRNewswire/ — Agrofinanzas, S.A. de C.V., SOFOL (Agrofinanzas) was recognized today by the G20 as one of 15 leading companies in the world on inclusive business innovation (The G20 Challenge on Inclusive Business Innovation), during a ceremony headed by the Executive Secretary of the Mexican Agency for International Development Cooperation and Chair of the G20 Development Working Group, Amb. Rogelio Granguillhome MorfÃn.
The award was granted to Agrofinanzas because, since its inception in 2006, it has designed and successfully implemented a business model that provides loans for Mexican small farmers and rural producers, enabling them to access the formal credit market from which they were previously excluded. Loans from Agrofinanzas carry affordable interest rates substantially lower than consumer lending and microfinance alternatives.
Referring to this global award, Mr. Francisco Mere, Agrofinanzas’ CEO commented: “We are proud to receive this recognition, but are even more pleased that, thanks to our business model, since our inception we have granted more than 80,000 loans to small agricultural producers, 80% of whom had no prior access to the formal financial sector.” He added, “Today, these producers are able to establish a credit history that gives them the opportunity to obtain other financing products. This way, we provide the tools to empower them to take control of their financial future and thus improve their economic situation in a win-win relationship.”
On the results of Agrofinazas financing system he mentioned: “We are currently the leaders in supply chain financing in the agribusiness sector in Mexico. Our innovative business model, based on technology and strategic alliances, has allowed the company to offer an attractive return to its investors for the past three years, while, according to a study we commissioned in 2011, over 30% of our customers have improved their economic situation since they received a loan from Agrofinanzas.”
The G20 on Inclusive Business Innovation Challenge is a global initiative launched at the G20 Summit of November 2011 in Cannes that recognizes companies that have succeeded in developing innovative, scalable, as well as commercially viable and replicable inclusive business models which work with low-income people living in developing countries as suppliers, distributors, retailers, or customers, becoming in what is known as “inclusive businesses.”
Agrofinanzas is a financial institution in Mexico, dedicated to providing financing to unbanked producers and businesses in the food and agricultural sector in rural and suburban areas, with special emphasis on supporting sustainability and financial inclusion in Mexico. It was established and authorized by the Mexican Ministry of Finance in 2006 and is supervised by the National Banking and Securities Commission. It has investment grade rating by Fitch Ratings Mexico and its debt securities are traded on the Mexican Stock Exchange.
As of April 2012, Agrofinanzas has MxP$1.742 billion in assets under management and a loan portfolio of nearly MxP$1.6 billion, distributed in 22 states of the country and more than 20 supply chains related to agribusiness, aquaculture, forestry and renewable energy. In the first four months of 2012, its loan portfolio grew by 27% when compared to December 2011, while at the end of April 2012 its non-performing loans were 3.1% of its loans’ portfolio.
For further information: www.agrofinanzas.com
SOURCE Agrofinanzas, S.A. de C.V.