MICROCAPITAL BRIEF: Absolute Dual Return-Vision Microfinance Fund Invests $3.2m in FINCA Russia, AzerCredit of Azerbaijan, Bank Constanta of Georgia, Mikrofin of Bosnia and Herzegovina

Absolute Portfolio Management GmbH (APM), an Austrian investment company that specializes in microfinance and asset management, recently disbursed USD 3.2 million in loans to microfinance institutions (MFIs) in Russia, Azerbaijan, Georgia, and Bosnia and Herzegovina through a microfinance investment vehicle that it manages, the Dual Return-Vision Microfinance Fund.

APM loaned USD 1.2 million to Foundation for International Community Assistance (FINCA) Russia, a subsidiary of the US-based nonprofit microfinance organization FINCA International that offers financial services to poor people in 21 countries. As 2011, FINCA Russia reported total assets of USD 41.4 million, a gross loan portfolio of USD 33.6 million, return on assets (ROA) of 0.84 percent, return on equity (ROE) of 5.15 percent and 11,281 active borrowers.

APM disbursed an additional USD 1 million to Vision Fund AzerCredit Limited Liability Company (VF AzerCredit LLC), a non-bank financial institution that has operated in Azerbaijan since January 1996. It was created as a program from World Vision, a UK-based Christian humanitarian organization. AzerCredit forms part of the Vision Fund International network, which reports a loan portfolio of USD 360 million helping 688,000 small businesses in 36 countries as of 2011. As of the same period, AzerCredit reports to the Microfinance Information Exchange (MIX), a US-based nonprofit, total assets of USD 46.4 million, a gross loan portfolio of USD 41.5 million, ROA of 5.66 percent, ROE of 36.8 percent and 47,200 active borrowers.

APM provided funding of USD 500,000 to Bank Constanta, a joint stock company established in 1997 in Georgia. Bank Constanta, which provides microfinance services to micro- and small businesses, reports total assets of USD 90.5 million, a gross loan portfolio of USD 70.9 million, USD 8.2 million in deposits to 33,830 depositors, ROA of 2.66 percent, ROE of 17.1 percent and approximately 30,052 active borrowers as of 2011.

Lastly, Mikrofin Banja Luka, an MFI based in Bosnia and Herzegovina providing financial services to low-income entrepreneurs since 1999, borrowed USD 500,000 from APM. Banja Luka has been operating since 1999. As of 2011, Banja Luka reported total assets of USD 127 million, a gross loan portfolio of USD 103 million, ROA of 1.11 percent, ROE of 4.18 percent and 36,562 active borrowers. FINCA Russia, AzerCredit and Banja Luka do not accept deposits.

By Sarah Benali, Research Associate

About FINCA Russia FINCA Russia is a microfinance institution (MFI) and subsidiary of FINCA International, a US-based nonprofit microfinance network that serves approximately 700,000 people through its microfinance subsidiaries in 21 countries. As 2011, FINCA Russia reported to the US-based nonprofit Microfinance Information Exchange (MIX) assets of USD 41.4 million, a gross loan portfolio of USD 33.6 million, return on assets (ROA) of 0.84 percent, return on equity (ROE) of 5.15 percent and 11,281 active borrowers. FINCA Russia does not accept deposits.

About VF Azercredit LLC
VF AzerCredit LLC (AzerCredit) is a non-bank financial institution that has been operating in Azerbaijan since January 1996. AzerCredit provides individual and group loans as well as grants to poor people in Azerbaijan. As of 2011, AzerCredit reports to the Microfinance Information Exchange (MIX), a US-based nonprofit, total assets of USD 46.4 million, a gross loan portfolio of USD 41.5 million, return on assets of 5.66 percent, return on equity of 36.8 percent and 47,200 active borrowers. Azercredit does not accept deposits.

About Vision Fund International
Vision Fund offers financial services to families living in poverty in the developing world through a network of microfinance institutions in 36 countries in Asia, Africa, Latin America and the Caribbean, the Middle East and Eastern Europe. Its services include small loans and business training and support. Vision Fund is part of World Vision, a US-based Christian relief, development and advocacy organization. Vision Fund has a loan portfolio of USD 360 million helping 688,000 small businesses as of 2011.

About Mikrofin Banja Luka
Mikrofin Banja Luka, established in 1999, is a microfinance institution (MFI) based in Bosnia and Herzegovina. It aims to “provide appropriate financial services to economically-active, low-income people that can make a profit and make it possible for them to become economically independent.” As of 2011, Mikrofin reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 127 million, a gross loan portfolio of USD 103 million, return on assets (ROA) of 1.11 percent, return on equity (ROE) of 4.18 percent and 36,562 active borrowers. Mikrofin does not accept deposits.

About JSC Bank Constanta Constanta has been working in Georgia since 1997 to provide microfinance services to micro- and small businesses. In December 2007, Constanta started operations as a joint stock company (JSC). It reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 90.5 million, a gross loan portfolio of USD 70.9 million, USD 8.2 million in deposits to 33,830 depositors, return on assets of 2.66 percent, return on equity of 17.1 percent and approximately 30,052 active borrowers as of 2011.

Sources and Additional Resources

Information submitted by Absolute Portfolio Management GmbH to MicroCapital

MicroCapital.org story: “MICROCAPITAL BRIEF: MF Banka Receives $5.2m from European Bank of Reconstruction and Development for Small Businesses in Bosnia, Herzgovina,” October 14, 2012, https://www.microcapital.org/microcapital-brief-mf-banka-receives-5-2m-from-european-bank-of-reconstruction-and-development-for-small-businesses-in-bosnia-herzgovina/

MicroCapital.org story: “MICROCAPITAL BRIEF: Absolute Portfolio Management Dual Return Fund Loans $8m to Microfinance Institutions in Azerbaijan, Cambodia, Ecuador, Indonesia, Kazakhstan, Tajikistan,” September 27, 2012, https://www.microcapital.org/microcapital-brief-absolute-portfolio-management-dual-return-fund-loans-8m-to-microfinance-institutions-in-azerbaijan-cambodia-ecuador-indonesia-kazakhstan-tajikistan-3/

MicroCapital.org Story: “MICROCAPITAL BRIEF: Dual Return Fund of Vision Microfinance Loans $1.5m to Microfinance Institutions in Colombia, Dominican Republic,” September 14, 2011, https://www.microcapital.org/microcapital-brief-dual-return-fund-of-vision-microfinance-loans-1-5m-to-microfinance-institutions-in-colombia-dominican-republic/

MicroCapital Universe Profile: FINCA Russia https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+Russia

MicroCapital Universe Profile: VF Azercredit LLC https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=VF+AzerCredit+LLC

MicroCapital Universe Profile: Mikrofin Banja Luka https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mikrofin+Banja+Luka

MicroCapital Universe Profile: JSC Bank Constanta https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=JSC+Bank+Constanta

MicroCapital Universe Profile: Absolute Portfolio Management
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Absolute+Portfolio+Management

MicroCapital Universe Profile: Dual Return Vision Microfinance Fund
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=DUAL+RETURN+VISION+MICROFINANCE+FUND

MicroCapital Universe Profile: Vision Fund International
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=VisionFund+International