MICROCAPITAL BRIEF: IIV Mikrofinanzfonds Lends $32m to Refinance Microfinance Institutions in El Salvador, Panama

Invest in Visions (IIV) Mikrofinanzfonds, a fund managed by Germany-based IIV, recently purchased non-securitized loan claims totaling USD 31.7 million from microlenders in Central America, allowing them to refinance a portion of their portfolios. The microfinance institutions (MFIs), which remain unidentified, are located in El Salvador and Panama.

Launched in 2006, IIV manages “investments in sustainable agriculture, social enterprises and social impact lending.” The firm created IIV Mikrofinanzfonds in 2011 to invest in micro-, small and medium-sized enterprises via intermediaries in developing countries. It does this mainly via “small and medium-sized MFIs, particularly in rural areas.” The minimum investment in the fund is EUR 100 (USD 109). During the first eight months of 2020, the two share classes of IIV Mikrofinanzfonds generated losses 1.4 percent and 1.6 percent. This follows two years of positive annual returns of 1.2 percent to 1.7 percent. As of August 2020, IIV Mikrofinanzfonds fund volume totaled EUR 754 million (USD 889 million) supporting 485,000 microborrowers with an average loan size of USD 1,178. Of these borrowers, 52 percent are women and 18 percent work in agriculture.

By Kate Finster, Research Associate

Sources and Additional Resources

IIV Mikrofinanzfonds August 2020 monthly report
https://www.investinvisions.com/files/200910_iiv_factsheet_englisch_august_2020.pdf

IIV financial statements
https://www.investinvisions.com/en/downloads.html

IIV homepage
https://www.investinvisions.com

Previous MicroCapital article on IIV Mikrofinanzfonds
https://www.microcapital.org/microcapital-brief-iiv-mikrofinanzfonds-invests-720k-in-premier-credit-refinancing-microfinance-loans-in-kenya/

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