Financial Inclusion in Colombia
August 17, 2017
This past quarter we made a $5 million investment in Bogota-based Bayport Colombia, following an initial investment of $2 million in 2015. Bayport Colombia is a wholly owned subsidiary of Bayport Management Limited, and is BML’s first venture into the Latin American market.
The Bayport group of companies provide financial solutions to formally and informally employed individuals in emerging markets who are at the lower end of the earnings spectrum and unable to access traditional banking services.
Informal lenders in Colombia typically charge interest rates up to 50%. In contrast, Bayport Colombia provides the ability for lower-income individuals to take out loans without suffering exorbitant interest rates. Nearly half of Bayport Colombia’s borrowers are located in rural areas, and 40% are women. Three-fourths of Bayport Colombia’s borrowers earn between $300 and $1,000 a month.
By increasing access to capital and reducing costs for lower-income households and communities, Bayport Colombia helps to responsibly alleviate the burden of poverty.
This investment marks an ongoing growth of our portfolio exposure in Latin America and aligns with Calvert Foundation values of financial inclusion. We are excited to grow our relationship with Bayport Colombia, and we look forward to tracking the impact of this work.