responsAbility Social Investments AG, an investment company based in Switzerland, recently invested USD 12.5 million across three financial institutions based in Belarus and Mongolia.
The responsAbility Microfinance Leaders Fund (rAMLF) and Mikrofinanz-Fonds, microfinance investment vehicles (MIVs) managed by responsAbility, each invested USD 1 million in Belarusian Bank for Small Business (BBSB), a financial institution focusing on micro- and small enterprises in Belarus [1]. As of March 2010, BBSB has a loan portfolio of USD 19.8 million, serves 1,290 clients and has 7 branches [2].
Mikrofinanz-Fonds, rAMLF, and the responsAbility Global Microfinance Fund (rAGMF), another microfinance investment vehicle (MIV) managed by responsAbility, invested approximately MNT 1.2 billion (USD 1 million), MNT 1.8 billion (USD 1.5 million) and MNT 4.3 billion (USD 3.5 million), respectively, in Khan Bank, a Mongolian bank that finances corporates, small and medium-sized businesses and individuals [1]. As of 2009, Khan Bank reported to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, total assets of USD 795 million, a gross loan portfolio of USD 416 million, approximately 311,100 borrowers, return on assets (ROA) of 1.03 percent and return on equity (ROE) of 11.36 percent.
Mikrofinanz-Fonds and rAMLF each invested USD 750,000 in XacBank, a community development bank and microfinance institution (MFI) based in Mongolia [1]. A further USD 3 million was also invested by rAGMF in XacBank [1]. As of 2009, XacBank reported to MIX total assets of USD 223 million, a gross loan portfolio of USD 137 million, approximately 73,100 borrowers, return on assets (ROA) of 0.91 percent, return on equity (ROE) of 9.29 percent.
By Medha Ravi, Research Associate
About responsAbility Social Investments AG:
Founded in 2003, responsAbility Social Investments AG of Switzerland is an investment company whose products aim to enable investors to earn a financial return while allowing people in developing countries and emerging markets to access markets, information and other services in sectors such as microfinance, small and medium-sized enterprise (SME) financing, fair trade and independent media. According to calculations based on data from the Microfinance Information Exchange (MIX) from 2009 and 2010, responsAbility manages approximately USD 800 million in total assets. responsAbility is backed by Swiss financial institutions and a social venture capital company as founders and shareholders including Baumann & Cie, Banquiers, Credit Suisse, Raiffeisen Schweiz, Swiss Re, Bank Vontobel AG as well as George Avenue.
About responsAbility Microfinance Leaders Fund (rAMLF):
The responsAbility Microfinance Leaders Fund (rAMLF) invests in large microfinance institutions (MFIs) through debt securities and equity investments. The Luxembourg Fund Labeling Agency (LuxFLAG), an independent organization that certifies that investment vehicles actually invest in the microfinance sector, renewed rAMLF’s label as of April 2010. rAMLF reported 129 active investments in microfinance in 2010 and total fund assets of USD 160 million.
About responsAbility Global Microfinance Fund (rAGMF):
rAGMF is a microfinance vehicle (MIV) managed by responsAbility that invests in microfinance institutions (MFIs) and microfinance investment vehicles (MIVs), mostly through short- to medium-term debt securities. rAGMF also invests up to 10 percent of its assets in the equity of MFIs. In April 2010, its annual label was renewed by the Luxembourg Fund Labeling Agency (LuxFLAG), an organization that investigates whether investment vehicles actually support the microfinance sector. rAGMF reported to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, that it had USD 474 million in fund assets as of 2010.
About Mikrofinanz-Fonds:
Mikrofinanz-Fonds is a microfinance investment vehicle (MIV) that was launched in 2007, is managed by responsAbility Social Investments AG of Switzerland and is funded by German financial institutions Bank im Bistum Essen and Stadtsparkasse Dusseldorf. It invests in microfinance institutions (MFIs) through debt securities and equity investments. Mikrofinanz-Fonds reported to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, that it held USD 103 million in assets as of 2010. The Luxembourg Fund Labeling Agency (LuxFLAG), an organization that investigates whether investment vehicles actually support the microfinance sector, renewed its certification of Mikrofinanz-Fonds as of April 2010.
About Belarusian Bank for Small Business (BBSB):
The Belarusian Bank for Small Business (BBSB) was founded in 2008 by the European Bank for Reconstruction and Development (EBRD), an international finance institution; Commerzbank AG, a commercial bank in Germany; Germany’s KfW Development Bank; the Netherlands Development Finance Company (FMO), the international development bank of the Netherlands; ShoreBank International Ltd., a US financial institution “dedicated to expanding access to capital for small businesses;” Shorecap International Ltd., a US financial institution “specializing in providing micro and small business loans in transition economies;” Swedfund, a venture fund established by the Swedish government; and the International Finance Corporation (IFC), the investment arm of the World Bank. As of March 2010, BBSB has a loan portfolio of USD 19.8 million, serves 1,290 clients, and has 7 branches.
About Khan Bank:
Established in 1991 in Mongolia and privatized by the State Property Committee in 2003, Khan Bank provides financial services to corporates, small and medium businesses and individuals. As of 2009, Khan Bank reported to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, total assets of USD 795 million, a gross loan portfolio of USD 416 million, approximately 311,100 borrowers, return on assets (ROA) of 1.03 percent and return on equity (ROE) of 11.36 percent.
About XacBank:
XacBank is a community development bank and microfinance institution (MFI) founded in 1998 that aims to become a leading financial institution “by providing inclusive and value adding financial services to the citizens and expatriates, institutions and enterprises of Mongolia, while maintaining its leadership in the global microfinance industry.” As of 2009, XacBank reports to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, total assets of USD 223 million, a gross loan portfolio of USD 137 million, approximately 73,100 borrowers, return on assets (ROA) of 0.91 percent and return on equity (ROE) of 9.29 percent.
Source and Resources:
[1] Data submitted by responsAbility Social Investments AG to MicroCapital January 2011
[2] MicroCapital’s Microfinance Universe Profile: Belarusian Bank for Small Business (BBSB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Belarusian+Bank+for+Small+Business+%28BBSB%29
MicroCapital.org story, January 10, 2011, “MICROCAPITAL BRIEF: responsAbility Social Investments of Switzerland Makes Loans Totaling $13m to Banco Continental of Paraguay, Financiera Confianza of Peru”, https://www.microcapital.org/microcapital-brief-responsability-social-investments-of-switzerland-makes-loans-totaling-13m-to-banco-continental-of-paraguay-financiera-confianza-of-peru
MicroCapital’s Microfinance Universe Profile: responsAbility Social Investments AG
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility
MicroCapital’s Microfinance Universe Profile: responsAbility Microfinance Leaders Fund (rAMLF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Microfinance+Leaders+Fund+%28rAMLF%29
MicroCapital’s Microfinance Universe Profile: responsAbility Global Microfinance Fund (rAGMF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Global+Microfinance+Fund+%28rAGMF%29
MicroCapital’s Microfinance Universe Profile: Mikrofinanz-Fonds, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Mikrofinanz-Fonds
MicroCapital’s Microfinance Universe Profile: Khan Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Khan+Bank
MicroCapital’s Microfinance Universe Profile: XacBank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=XacBank
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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