Incofin Investment Management, a Belgium-based investment management firm focusing on microfinance institutions (MFIs) in developing countries, recently announced sales of some of its equity in Banco para el Fomento a las Iniciativas Económicas (Banco FIE), a Bolivian bank focusing on the financially excluded, to the bank’s incumbent shareholders. Incofin Investment Management reports that the sales by Impulse Microfinance Investment Fund and Incofin CVSO, two of the funds advised by Incofin, earned a “double-digit return.” While Impulse sold its entire stake, Incofin CVSO sold half of its 10.5-percent equity stake. The size of the stake sold by Impulse and both sale prices remain undisclosed. The original investments were made in 2007 [1].
Founded in 1985 as an NGO, Banco FIE became a regulated bank in 2010. As of 2014, it had USD 1.2 billion in total assets, a loan portfolio worth USD 1 billion, return on equity of 17.8 percent and return on assets of 1.4 percent. As of December 2015, Incofin CVSO had EUR 52 million (USD 56 million) invested in 43 MFIs. As of December 2015, Impulse had an investment portfolio amounting to EUR 34 million (USD 45 million).
By Sharanya Madhavan, Research Associate
About Banco FIE
Banco para el Fomento a las Iniciativas Económicas (Banco FIE) was established as an NGO in 1985 with the purpose of serving micro- and small enterprises in Bolivia. It continued to operate as a private financial fund from 1998. In 2010, Banco FIE started functioning as a regulated bank offering both credit and savings products while making equity investments in the agriculture sector and education. As of 2014, the bank had USD 1.2 billion in total assets, loan portfolio worth USD 1 billion, return on equity of 17.8 percent and return on assets of 1.4 percent.
About Incofin Investment Management
Incofin Investment Management is a private, limited liability company based in Belgium that manages funds investing in microfinance institutions (MFIs) in developing countries. In particular, it focuses on rural areas. Incofin’s funds include Incofin CVSO, Impulse Microfinance Investment Fund, Fairtrade Access Fund, Rural Impulse Funds I and II, VDK Loan Portfolio, The Belgian Investment Company account, Volksvermogen, Agricultural Rural Impulse Fund (agRIF) and Invest in Visions. As of June 2016, Incofin had invested USD 543 million in 158 companies and managed total assets worth USD 858 million.
About Incofin CVSO
Incofin CVSO is an investment fund managed by Incofin Investment Management. The fund makes equity and debt investment in small and medium-sized microfinance institutions (MFIs) with a focus on social performance. The fund is advised by Incofin Investment Management and is incorporated in Belgium. As of December 2015, Incofin CVSO had EUR 52 million (USD 56 million) invested in 43 MFIs.
About Impulse Microfinance Investment Fund
The Incofin Impulse Microfinance Investment Fund is a microfinance investment vehicle (MIV) that mobilizes debt capital for microfinance institutions (MFIs) at later growth stages. These are known as Tier-I and Tier-II institutions. The fund is advised by Incofin Investment Management, which specializes in microfinance investment. The Incofin Impulse Microfinance Investment Fund was launched in 2004 with funding from Belgian institutional investors KBC Bank Volksvermogen, a holding group; Volksdepositokas (VDK) Spaarbank, a savings bank; MRBB, a farmers’ association; and Volksvermogen, a fund advised by Incofin Investment Management. As of December 2015, the fund had an investment portfolio amounting to EUR 34 million (USD 45 million).
Sources and Additional Resources:
[1] Incofin Press Release: Incofin IM Announces Sale of Equity Participation in Banco FIE in Bolivia
MicroCapital Universe: Incofin Investment Management
MicroCapital Universe: Incofin CVSO
MicroCapital Universe: Impulse
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