Symbiotics Investment Group, a Swiss for-profit microfinance investment intermediary, recently raised USD 10 million in loan funds for Access Bank, a microfinance bank in Azerbaijan, through Micro, Small & Medium Enterprise Bonds SA (MSME Bonds), an investing issuance platform founded by Symbiotics.Based in Luxembourg, MSME bonds is dedicated to offering fixed-income impact investing options for institutional investors in the form of standardized, electronically-traded syndications. The bond offers Access Bank 3-year financing intended to sustain the growth of its micro- and small enterprise credit portfolio.
According to Michael Hoffman, CEO of Access Bank, “This is an important new transaction with our long-term partner, Symbiotics, which will support the strong current growth of the Bank’s lending activities to micro and SME businesses especially in the regions of the country where the Bank is continuously expanding its outreach.” Since 2006, Symbiotics has structured financing totaling approximately USD 30 million for Access Bank. As of 2011, Access Bank reported deposits of USD 178 million and 110,000 depositors. It also reported a gross loan portfolio of USD 376 million with 118,000 active borrowers, return on assets of 4.71 percent and return on equity of 21.41 percent. As of October 2012, Access Bank accounts for USD 577 million in total assets and 34 branches in the country.
Roland Dominicé, CEO of Symbiotics said, “With MSME Bonds, we are able to access more traditional investors and offer them the opportunity to get direct exposure to first-tier financial institutions in emerging economies, capturing the growth of their micro- and small enterprise market.’ Symbiotics works with approximately 20 investment funds and a dozen institutional investors. It has facilitated the provision of USD 895 million in capital to about half a million micro- small and medium-sized enterprises (MSMEs) through 150 financial institutions in approximately 35 emerging economies as of 2011.
By Chioma Okwudiafor, Research Associate
About Access Bank, Azerbaijan
Founded in 2002, Access Bank provides credit and other financial services to Azerbaijan’s micro- and small businesses and low-and middle-income families. Access Bank is owned by six foreign shareholders: the Black Sea Trade and Development Bank, the European Bank for Reconstruction and Development, the International Finance Corporation, KfW (20 percent each), Access Microfinance Holding – a German microfinance investor (16.53 percent), and LFS Financial Systems – a German consulting company (3.47percent). As of 2011, Access Bank reported deposits of USD 178 million and 110,000 depositors. It also reported a gross loan portfolio of USD 376 million with 118,000 active borrowers, return on assets of 4.71 percent and return on equity of 21.41 percent. As of October 2012, Access Bank accounts for USD 577 million in total assets and 34 branches in the country.
About Symbiotics Investment Group
Founded in 2005, Symbiotics Investment Group is a for-profit provider of investment intermediary and other services to the microfinance industry as well as to investors in and practitioners of micro- and small enterprise (MSE) development. Symbiotics works with approximately 20 investment funds and a dozen institutional investors. It has facilitated the provision of USD 895 million in capital to about half a million micro-, small and medium-sized enterprises (MSMEs) through 150 financial institutions in approximately 35 emerging economies as of 2011. The company also offers Syminvest, a microfinance investment intelligence platform designed to increase transparency and enhance investment capacity in the industry. In 2010, Symbiotics launched Micro, Small & Medium Enterprise Bonds SA (MSME Bonds), an investing platform based in Luxembourg dedicated to impact investing for institutional investors.
About Symbiotics Micro, Small & Medium Enterprise Bonds SA (MSME Bonds) Started by Symbiotics Investment Group in 2010, MSME Bonds is based in Luxembourg and offers standard bond syndication programme settled through Euroclear/Clearstream, a user-owned and governed, Belgium- based financial services company. The intent of the platform is to simplify investments with more transparent, market-driven pricing and standardized legal, financial and social documentation. MSME Bonds repacks loans to first-tier microfinance institutions into traditionally structured bonds that are cleared and settled through Euroclear.
Sources and Additional Resources:
Symbiotics Press Release Sent to MicroCapital
MicroCapital Story: October 29, 2012, MICROCAPITAL BRIEF: Oxfam, City of London, Symbiotics Invest $1.6m in Xac Leasing of Mongolia through Small Enterprise Impact Investing Fund (SEIIF)
https://www.microcapital.org/microcapital-brief-oxfam-city-of-london-symbiotics-invest-1-6m-in-xac-leasing-of-mongolia-through-small-enterprise-impact-investing-fund-seiif
MicroCapital Story: December 28, 2010, MICROCAPITAL BRIEF: Symbiotics Launches Micro-, Small & Medium-Sized Enterprise Bonds Electronic Platform, Closes Two Deals for Mutual Cartago de Ahorro y Prestamo (MUCAP) and Microfinance Institution (MFI) Lanka ORIX MicroCredit (LOMC) https://www.microcapital.org/microcapital-brief-symbiotics-launches-micro-small-medium-sized-enterprise-bonds-electronic-platform-closes-two-deals-for-mutual-cartago-de-ahorro-y-prestamo-mucap-and-microfinance-institu/
MicroCapital Universe Profile: Symbiotics Group
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Symbiotics+Group
MicroCapital Universe Profile: Access Bank
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=AccessBank
MicroCapital Universe Profile: Symbiotics Micro, Small & Medium Enterprise Bonds SA (MSME Bonds) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Micro%2C+Small+and+Medium+Enterprise+Bonds+% 28MSME%29
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