The Rural Impulse Fund II (RIF II), a microfinance investment vehicle (MIV) managed by Incofin Investment Management (IM) of Belgium, has acquired an 8.2-percent equity stake in Peru’s Empresa de Desarrollo de la Pequeña y Micro Empresa (EDPYME) Solidaridad, a non-bank financial institution that is held by the nonprofit organization Caritas del Peru. EDPYME Solidaridad reported total assets of USD 38.6 million, a total outstanding portfolio of USD 35.5 million, return on assets of 1.69 percent and return on equity of 4.87 percent as of 2011. The microlender offers individual lending and group lending to approximately 23,000 clients and currently has no depositors. Incofin IM currently has a seat on the board of EDPYME Solidaridad [1,2].
Incofin IM also invested in Fonds d’Investissements pour le Developpement Economique et Social (FIDES) Bank of Namibia through Volksvermogen, a fund of a Belgian holding company of the same name that is managed by Incofin IM. Volksvermogen, which is among the founding shareholders of FIDES, currently holds a 12.6-percent equity stake in the microbank, which holds USD 3.5 million in assets, USD 1.1 million in total deposits, a gross loan portfolio of USD 2.8 million and approximately 10,000 borrowers in northern Namibia as of 2011. As of the same period, its return on assets is reported at -82.88 percent, and its return on equity is -314.06 percent. Although the number of depositors is unavailable, FIDES accounts for USD 1.1 million in deposits as of 2011. The bank is looking to expand its operations to include insurance products, mobile banking and a network of automated teller machines (ATM’s) while increasing its staffing and geographic reach into the Windhoek region [2,3].
Incofin Cooperatieve Vennootschap met Sociaal Oogmerk (CVSO), another investment fund managed by Incofin IM that is focused on small to medium-sized microfinance institutions (MFIs) has placed its first investment in Burkina Faso. Incofin CVSO took a 20-percent share in Agence de Credit pour l’Entreprise Privee (ACEP) Burkina, a new microfinance institution that is part of the ACEP-International initiative, which has developed microfinance projects in several neighboring countries. Amongst its shareholders are the following French companies: I&P Afrique Entrepreneurs (IPAE), Credit Cooperatif and Societe Generale (SG) through its local arm, Societe Generale des Banques du Burkina (SGGB). The price paid by RIF II, Volksvermogen and Incofin CVSO for the aforementioned equity stakes have not been released.
By Sarah Benali, Research Associate
About EDPYME Solidaridad
Empresa de Desarrollo de la Pequeña y Micro Empresa (EDPYME) Solidaridad is a regulated microfinance institution in Peru. Its mission is to promote the improvement of family and community life through financial services and social welfare programs. As of 2011, EDPYME Solidaridad has total assets of USD 38.6 million, gross loan portfolio of USD 33.1 million and 21,691 active borrowers. Its return on assets and return on equity are 1.69 percent and 4.87 percent respectively.
About FIDES Bank of Namibia
Fonds d’Investissements pour le Developpement Economique et Social (FIDES) Bank Namibia is a microfinance bank in Namibia that received its license from the Bank of Namibia in February 2010. FIDES holds USD 3.5 million in assets, USD 1.1 million in total deposits, a gross loan portfolio of USD 2.8 million and more than 10,000 borrowers in northern Namibia as of 2011. As of the same period, its return on assets is reported at -82.88 percent, and its return on equity is -314.06 percent. Although the number of depositors is unavailable, FIDES accounts for USD 1.1 million in deposits as of 2011.
About ACEP-Burkina
Agence de Credit pour l’Entreprise Privee (ACEP) Burkina is an emerging microfinance institution in Burkina Faso sponsored by ACEP-International initiative, which is responsible for developing microfinance projects in several neighboring countries. Financial data on ACEP-Burkina is not available as it has not yet started operations.
About Incofin Investment Management (IM)
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. Its funds include Incofin CVSO, Impulse Microfinance Investment Fund, Rural Impulse Fund I & II, VDK MFI Lending Portfolio and Volksvermogen.
About Incofin Rural Impulse Funds (RIF 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 25.7 million (USD 35.9 million) and a fund size of EUR 30 million (USD 38 million), while 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).
About Incofin CVSO
Incofin Coöperatieve Vennootschap met Sociaal Oogmerk (Cooperative with Social Objectives) is an investment fund that makes equity and debt investment in small and medium-sized microfinance institutions (MFIs). The fund is managed by Incofin Investment Management and is incorporated in Belgium. As of October 31, 2011, Incofin CVSO has outstanding investments of EUR 31.1 million (USD 43 million).
About Volksvermogen
Managed by Belgium’s Incofin Investment Management (IM), Volksvermogen is a microfinance investment vehicle funded by the Belgian holding company of the same name. The fund aims to support microfinance institutions and small and medium-sized enterprises in developing countries through both debt and equity investments. As of 2012, Volksvermogen reports a total fund size of USD 14 million.
Sources and Additional Resources:
[1] Incofin Press Release: “RIF II enters into the capital of Edpyme Solidaridad in Peru,” https://www.incofin.com/en/news/rif-ii-enters-capital-edpyme-solidaridad-peru?%20September%202012
[2] MicroCapital.org story, September 1, 2012, “MICROCAPITAL BRIEF : Incofin Rural Impulse Fund II completes equity investment in microfinance institution Azercredit of Azerbeijan, Volksvermogen Raises stake to 10% in ProEmpresa in Peru,” https://www.microcapital.org/microcapital-brief-incofin-rural-impulse-fun…
[3] Incofin Press Release: “Volksvermogen contributes to capital increase in FIDES bank Namibia to support further growth,”
https://www.incofin.com/en/news/volksvermogen-contributes-capital-increase-fides-bank-namibia-support-its-further-growth?%20September%202012
[4] Incofin Press Release: “Incofin CVSO becomes shareholder of the microfinance start-up ACEP-Burkina,” https://www.incofin.com/en/news/incofin-cvso-becomes-shareholder-microfinance-start-acep-burkina?%20September%202012
MicroCapital Universe Profile: Incofin Rural Impulse Funds (RIFs I and II) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+Rural+Impulse+Funds+%28RIFs%29
MicroCapital Universe Profile: Incofin CVSO https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+cvso
MicroCapital Universe Profile: Incofin Investment Management https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+Investment+Management+%28Incofin+IM%29
MicroCapital Universe Profile: Volksvermogen
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Volksve…
MicroCapital Universe Profile: EDPYME Solidaridad
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Emp…
MicroCapital Universe Profile: FIDES Bank of Namibia
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fon…
MicroCapital Universe Profile: ACEP-Burkina
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ACE…
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