NORANDINO | Cooperativa de Ahorro y Crédito
Cooperativa de Ahorro y Crédito (COOPAC) Norandino is a regulated savings & credit cooperative founded in 2005 under the initiative of 24 organized farmers from the coffee segment and 3 coffee cooperatives, under the motto “For farmers, by farmers”, which it continues to adhere to today.
COOPAC Norandino has a strong presence in rural North Peru, where some of the highest levels of poverty are to be found in the country. Norandino primarily serves smallholder farmers and agricultural cooperatives with tailor-made agricultural loans and savings products, but also supports microentrepreneurs which, in many cases, are related to the agri-value chain. Most of Norandino’s clients produce coffee, but it also supports cocoa, sugar and banana farmers, aiming to integrate farmers into the formal financial system. Norandino supports “triangulations” of these producers with exporters / importers and plays a strong role in boosting awareness with respect to sustainable farming techniques both with its clients and within the Peruvian agricultural sector in general.
As of Dec-20, Norandino is present in 4 regions in North Peru, catering to 27,500 members. 72% of its clients are based in rural areas, and 33% are women. 63% of its total loan portfolio is focused on agricultural products.
Norandino is currently working with Rainforest Alliance on the launch of a new green product which aims to support sustainable farming practices, incl. reducing deforestation, lowering CO2 emissions and the use of agrochemicals. This product is expected to carry lower interest rates for clients, as a motivation to these sustainable practices.
Investment EUR 3 million, in two tranches
Investment type: Senior unsecured debt
Technical Assistance: Pending confirmation
Date of investment: Apr-21