The Mexican microfinance bank Compartamos Banco took the industry by surprise in 2007 with a successful IPO that valued the bank at more than US$ 1 billion. Although it was not the first listing of a microfinance organisation, the 10,000% rate of return for the initial investors and supervisors created argument as many considered that these yields were probable because of the high interest rates charged to poor borrowers.
The microfinance business and still rages split today. The case tells the story of Compartamos and its IPO, and outlines the different arguments from both sides, setting the scene for a lively discussion-fashion session..
PUBLICATION DATE: September 30, 2009 PRODUCT #: INS105-PDF-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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