Incofin Investment Management, a firm based in Belgium, recently made an INR 100 million (approximately USD 2.21 million) equity investment in Indian microfinance institution (MFI) Hope Microcredit, which is based in Kerala.
The exact percentage of ownership transferred to Incofin Investment Management as a result of this investment was not specified. The investment is funded by Incofin’s Rural Impulse Fund II, which is in the process of raising funds to make a final close of EUR 120 million (approximately USD 158 million).
Hope Microcredit currently does not report data to the Microfinance Information Exchange, the microfinance information clearinghouse. According to Hope Microcredit’s annual report of 2009, the MFI has total assets of INR 228.9 million (approximately USD 5.06 million), total loan portfolio of INR 202 million (approximately USD 4.47 million) and 57,445 active borrowers.
About Incofin Rural Impulse Funds:
The Incofin Rural Impulse Funds (RIF) were launched to invest in rural microfinance institutions (MFIs) that are deemed commercially viable. The two funds include Rural Impulse Fund I and Rural Impulse Fund II. They target both farm and non-farm populations in small towns and villages. The funds invest primarily through loans, though they make equity investments and guarantees as well. Rural Impulse Fund I has invested EUR 30.8 million (approximately USD 40.6 million) in MFIs across 19 countries as of November 2010. Rural Impulse Fund II, on the other hand, has invested EUR 6.53 million (approximately USD 8.63 million) in MFIs across 4 countries as of November 2010.
About Hope Microcredit:
Hope Microcredit is a microfinance institution based in Kerala that started as an NGO in 2005. In 2010, it became a non-bank finance corporation. Hope Microcredit currently does not report data to the Microfinance Information Exchange, the microfinance information clearinghouse. According to Hope Microcredit’s annual report of 2009, the MFI has total assets of INR 228.9 million (approximately USD 5.06 million), total loan portfolio of INR 202 million (approximately USD 4.47 million and 57,445 active borrowers.
By Trevor Kwong, Research Assistant
Sources and Additional Resources:
[1] Source Article: VC Circle: First MFI Deal Post AP Crisis; Incofin Invests In Hope Microcredit:
http://www.vccircle.com/500/news/first-mfi-deal-post-ap-crisis-incofin-invests-in-hope-microcredit
[2] MicroCapital Universe: Incofin Rural Impulse Fund:
[3] MicroCapital Universe: Hope Microcredit:
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Hope+Microcredit
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/tiki-index.php
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