Incofin Investment Management, a Belgian company that manages microfinance investment funds, has paid INR 13 crore (USD 2.36 million) for an equity stake of undisclosed size in Annapurna Microfinance Private Limited, a for-profit microfinance company based in the Indian state of Orissa. Annapurna has nearly 125,000 clients across 18 districts in Orissa and a loan book of INR 35.78 crore (USD 6.49 million).
As of 2010, Annapurna had assets totaling INR 7.05 crore (USD 1.28 million), return on assets of 0.39 percent and return on equity of 10.78 percent.
The investment was funded by Incofin’s Rural Impulse Fund II, which “is focused on investing in MFIs [microfinance institutions] with controlled growth and outstanding levels of corporate governance.” As of October 31, 2011, Rural Impulse Fund II has outstanding investments of EUR 33.1 million (USD 46.0 million) and a fund size of EUR 120 million (USD 173 million).
AMPL Managing Director Gobindra Pattanaik stated that Incofin, “will definitely bring a strategic value, which is required as we enter the growth phase.” Aditya Bhandari, Regional Director of South Asia for Incofin, announced, “we are happy to support such an exemplary MFI and are quite confident that they will attain a leadership position in the regions they operate.”
By Webster Hughes, Research Associate
About Incofin Investment Management: Incofin Investment Management is a private Belgian company that develops and manages funds investing in microfinance institutions (MFIs) in developing countries. As of June 2011, Incofin manages six facilities with total outstanding investments of USD 425 million in 39 countries.
About Rural Impulse Fund (RIFs I and II): The Incofin Rural Impulse Funds (RIF) were launched by Incofin Investment Management 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. As of October 31, 2011, Rural Impulse Fund I has outstanding investments of EUR 28.9 million (USD 38.4 million) and a fund size of EUR 30 million (USD 38 million), while Rural Impulse Fund II has outstanding investments of EUR 36.3 million (USD 48.6 million) and a fund size of EUR 120 million (USD 173 million).
About Annapurna Microfinance Private Limited: Headquartered in Bhubaneswar, Annapurna Microfinance Private Limited is a for-profit Indian microfinance company that is regulated as a non-banking financial company. As of March 2012, Annapurna had a base of 124,786 clients served via 30 branches with a loan book of INR 35.78 crore (USD 6.49 million). In 2010, Annapurna had assets totaling INR 7.05 crore (USD 1.28 million) return on assets of 0.39 percent, and return on equity of 10.78 percent. It was created in 1988 when the People’s Forum, a nonprofit development organization, decided to spin off the microfinance portion of its business.
Sources and Additional Resources:
Incofin.com story, “Incofin IM takes equity stake of Rs 130 Million (USD 2.36 Million) in Indian Annapurna Microfinance”, “http://in.reuters.com/article/2012/07/02/annapurna-microfinance-raises-236-mln-fr-idINDEE8610G220120702”
MicroCapital.org story, July 9, 2012: “MICROCAPITAL BRIEF: Funds Managed By Incofin Loan $5m to FINCA Kyrgyzstan, Bai Tushum of Kyrgyzstan; Take 35% Stake in Unguka Bank of Rwanda”, “https://www.microcapital.org/microcapital-brief-funds-managed-by-inco…”
MicroCapital.org story, June 12, 2012: “MICROCAPITAL BRIEF: Incofin, BIO Sign $12m Agreement to Develop Early-Stage Microfinance Institutions in Africa, Latin America, Asia, “https://www.microcapital.org/microcapital-brief-inco…”
Access Assist, Client Protection Assessment Report, Annapurna Microfinance Private Limited,? January/February-2011,”http://annapurnamicrofinance.com/pdf/Client…”
Crisil Ratings, Microfinance Institution Grading Report, Annapurna Microfinance Private Limited,”http://annapurnamicrofinance.com/pdf/CRI…”
MicroCapital Universe Profile: Incofin Investment Management, “http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Inco”
MicroCapital Universe Profile: Annapurna Microfinance, “http://microcapital.org/microfinanceuniverse/tiki-index.php?page=”Anna…”
Browse the MicroCapital Universe and add your entry to the wiki at: http://microcapital.org/microfinanceuniverse/tiki-index.php
Similar Posts:
- MICROCAPITAL BRIEF: Annapurna Finance Borrowing $25m from responsAbility to Boost Renewable Energy, Energy-efficiency in India
- MICROCAPITAL BRIEF: Incofin Places $4.3m in Equity in Varashakti Housing Finance via India Progress Fund
- MICROCAPITAL BRIEF: LOLC Buys 28% Equity Stake in Unguka Bank, Provider of Microfinance in Rwanda, from Incofin
- MICROCAPITAL BRIEF: Rite Water of India Nets $8m in Equity from Incofin via Water Access Acceleration Fund
- MICROCAPITAL BRIEF: Microfinance Institution PEBCo-Bethesda of Benin Borrows $2m from Incofin via Agricultural Liquidity Fund
