Belgian company Incofin Investment Management (Incofin IM) has recently disbursed loans through microfinance investment funds it manages to three microfinance institutions (MFIs): USD 800,000 to Azerbaijani Finance for Development (FinDev), KZT 44 million (approximately USD 305,000) to Kazakh Asia Credit Fund (ACF) and USD 2.5 million to Kyrgyz Kompanion. The loans to FinDev and Kompanion were disbursed through Incofin’s Rural Investment Fund I, while the loan to ACF was made available through Incofin CVSO. [1, 2, 3]
FinDev began operations in 1997 as a savings and credit project of Oxfam Great Britain International Humanitarian Organization. Registered in 2002 as an independent entity, it provides a variety of group and individual loans, mainly in rural areas of Azerbaijan. As of June 2011, FinDev reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 11.7 million, a gross loan portfolio of USD 10.1 million and approximately 8,130 active borrowers. As of December 2010, FinDev reported return on assets (ROA) of 4.77 percent and return on equity (ROE) of 15.9 percent.
Established in 1997 as a micro- and small business lending program, ACF also provides mortgage and home improvement loans to encourage home ownership. As of 2010, ACF reported to MIX total assets of USD 4.8 million, a gross loan portfolio of USD 2.6 million, approximately 4,539 borrowers, ROA of -1.75 percent and ROE of -16.4 percent. Together with the investment, ACF is set to receive technical assistance from Incofin on financial and human resource management [2].
A partner of Incofin since 2008, Kompanion was established in Kyrgyzstan in 2004 through the consolidation of five microcredit agencies affiliated with Mercy Corps, an economic development and aid organization based in the United States. Kompanion describes itself as a “community development financial institution that seeks to combine conservation and development goals.” As of December 31, 2010, Kompanion reported to MIX total assets of USD 50 million, a gross loan portfolio of USD 30 million, ROA of 4.78 percent, ROE of 20.82 percent and 119,000 active borrowers.
By Kristha Abores, Research Associate
About Incofin Investment Management (Incofin IM):
Incofin Investment Management is a private Belgian company that develops and manages funds investing in microfinance institutions (MFIs) in developing countries. As of January 31, 2011, Incofin manages six facilities with total outstanding investments of EUR 152 million (USD 206 million). As of 2011, Incofin has invested in 91 MFIs in 38 countries.
About Incofin Rural Impulse Funds (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 July 31, 2011, Rural Impulse Fund I has outstanding investments of EUR 22.8 million (USD 32.7 million), while Rural Impulse Fund II has outstanding investments of EUR 26.5 million (USD 37.7 million).
About Incofin CVSO:
Incofin CVSO 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 July 31, 2011, Incofin CVSO has outstanding investments of EUR 30.5 million (USD 42.8 million).
About Finance for Development (FinDev):
Finance for Development LLC (FinDev) is an Azerbaijan-based financial institution that began operations in 1997 as a savings and credit project of Oxfam Great Britain International Humanitarian Organization. Registered in 2002 as an independent entity, it provides a variety of group and individual loans, mainly in rural areas of Azerbaijan. As of June 2011, FinDev reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 11.7 million, a gross loan portfolio of USD 10.1 million and approximately 8,130 active borrowers. As of December 2010, FinDev reported return on assets (ROA) of 4.77 percent and return on equity (ROE) of 15.9 percent.
About Asian Credit Fund LLP (ACF):
Established in 1997 as a micro- and small business lending program, Asian Credit Fund LLP (ACF) also provides mortgage and home improvement loans to encourage home ownership. As of 2010, ACF reported to US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 4.8 million, a gross loan portfolio of USD 2.6 million, approximately 4,539 borrowers, return on assets (ROA) of -1.75 percent and return on equity (ROE) of -16.4 percent.
About Kompanion Financial Group Microfinance Closed Joint Stock Company:
Kompanion Financial Group Microfinance Closed Joint Stock Company (Kompanion) was established in Kyrgyzstan in 2004 through the consolidation of five microcredit agencies affiliated with Mercy Corps, an economic development and aid organization based in the United States. Kompanion describes itself as a “community development financial institution that seeks to combine conservation and development goals.” As of December 31, 2010, Kompanion reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 50 million, a gross loan portfolio of USD 30 million, return on assets (ROA) of 4.78 percent, return on equity (ROE) of 20.82 percent and 119,000 active borrowers.
Sources and Additional Resources:
[1] Incofin: “USD 800,000 loan to new partner FinDev in Azerbaijan”, http://www.incofin.com/en/news/usd-800000-loan-new-partner-findev-azerba…
[2] Incofin: “Incofin cvso supports early stage MFI Asian Credit Fund”, http://www.incofin.com/en/news/incofin-cvso-supports-early-stage-mfi-asi…
[3] Incofin: “Kyrgyz MFI Kompanion receives additional loan from Rural Impulse Fund I”, http://www.incofin.com/en/news/kyrgyz-mfi-kompanion-receives-additional-…
MicroCapital.org article, September 2, 2011, “MICROCAPITAL BRIEF: Incofin Lends $9m to Microfinance Institutions (MFIs) PRIDE Tanzania; LAPO of Nigeria; Sinapi Aba Trust, FASL of Ghana”, https://www.microcapital.org/microcapital-brief-incofin-lends-9m-to-micro…
MicroCapital.org article, July 10, 2011, “MICROCAPITAL BRIEF: Incofin Loans $10.5m to Microfinance Institutions (MFIs) FINCA Guatemala, FINCA Azerbaijan, LAPO of Nigeria; Makes Equity Investment of $350k in ACME of Haiti”, https://www.microcapital.org/microcapital-brief-incofin-loans-10-5m-to-mi…
MicroCapital.org article, June 27, 2011, “MICROCAPITAL BRIEF: Incofin VDK MFI Loan Portfolio Loans $5m to Mongolian Microfinance Institution XacBank”, https://www.microcapital.org/microcapital-brief-incofin-vdk-mfi-loan-port…
MicroCapital Universe Profile: Incofin Investment Management, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Inc…
MicroCapital Universe Profile: Incofin CVSO, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Inc…
MicroCapital Universe Profile: Incofin Rural Impulse Funds (RIFs I and II), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Inc…
MicroCapital Universe Profile: Finance for Development (FinDev), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Finance+for+Development+%28FinDev%29
MicroCapital Universe Profile: Asian Credit Fund LLP (ACF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Asian+Credit+Fund+LLP
MicroCapital Universe Profile: Kompanion Financial Group Microfinance Closed Joint Stock Company, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kompanion+Financial+Group+Microfinance+Closed+Joint+Stock+Company
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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