MICROCAPITAL BRIEF: Incofin Rural Impulse Fund II Completes Equity Investment in Microfinance Institution Azercredit of Azerbaijan, Volksvermogen Raises Stake to 10% in ProEmpresa of Peru

The Incofin Rural Impulse Fund II (RIF II), a microfinance investment vehicle (MIV) that mobilizes capital for rural microfinance institutions (MFIs), recently completed an equity investment of an undisclosed amount in Azercredit, an Azerbaijani MFI. In conjunction with the equity investment, Incofin CVSO, an investment fund managed by Incofin Investment Management, loaned USD 1 million to Azercredit. Further information on the loan and investment is unavailable.

Volksvermogen, the fund of a Belgian holding company of the same name and that is managed by Incofin, has raised its stake in ProEmpresa, a Peruvian MFI, to ten percent. Both RIF II and Volksvermogen will have positions on the boards of their respective MFIs.

As of 2011, AzerCredit reports to the Microfinance Information Exchange (MIX), a US-based nonprofit microfinance information database, total assets of USD 46.4 million, a gross loan portfolio of USD 41.5 million and 47,200 active borrowers. As of 2011, ProEmpresa held total assets of USD 79 million, a gross loan portfolio of USD 57.4 million and 39,622 borrowers. As of October 31, 2011, 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), and Incofin CVSO has outstanding investments of EUR 31.1 million (USD 43 million). As of 2012, Volksvermogen reports a total fund size of USD 14 million.

By Charlotte Newman, Research Associate

About VF Azercredit LLC
VF AzerCredit LLC (AzerCredit) is a non-bank financial institution that operates in Azerbaijan. AzerCredit provides individual and group loans and grants to Azerbaijan’s poor. As of 2011, AzerCredit reports to the Microfinance Information Exchange (MIX), a US-based nonprofit microfinance information database, total assets of USD 46.4 million, a gross loan portfolio of USD 41.5 million and 47,200 active borrowers.

About ProEmpresa
ProEmpresa, established in 1997, is a microfinance institution based in Lima, Peru. Its mission is to offer financial services that aid the development of micro and small-sized enterprises. ProEmpresa has 13 offices in Lima and six in the provinces of Andahuaylas, Ayacucho, Arequipa, Arequipa – Paucarpata, Trujillo and Huancayo. As of 2011 ProEmpresa held total assets of USD 79 million, a gross loan portfolio of USD 57.4 million and 39,622 borrowers. It also reported return on assets of 1.25 percent and return on equity of 7.39 percent.

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 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).

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 October 31, 2011, Incofin CVSO has outstanding investments of EUR 31.1 million (USD 43 million).

About Volksvermogen
Volksvermogen is the fund of a Belgian holding company that is managed by Incofin. The fund aims to support microfinance institutions and small- and medium-sized enterprises in developing countries, and offers both debt and equity investments. As of 2012, Volksvermogen reports a total fund size of USD 14 million.

Sources and Additional Resources:

Incofin Press Release: “Volksvermogen and RIF II complete equity investments in Proempresa and Azercredit,” http://www.incofin.com/en/news/volksvermogen-and-rif-ii-complete-equity-investments-proempresa-and-azercredit?utm_source=newsletter&utm_medium=e-mail&utm_campaign=Newsletter%20August%202012

MicroCapital.org story, July 13, 2012, “MICROCAPITAL BRIEF: Incofin Investment Management Invests $2.4m in Equity in Indian Annapurna Microfinance,” https://www.microcapital.org/incofin-investment-management-invests-2-4m-in-equity-in-indian-annapurna-microfinance/

MicroCapital.org story, June 26, 2012, “MICROCAPITAL BRIEF: Funds Managed by Incofin Loan $5m to FINCA Kyrgystan, Bai Tushum of Kyrgystan; Take 35% Stake in Unguka Bank of Rwanda,” https://www.microcapital.org/microcapital-brief-funds-managed-by-incofin-loan-5m-to-finca-kyrgyzstan-bai-tushum-of-kyrgyzstan-take-35-stake-in-unguka-bank-of-rwanda/

MicroCapital Universe Profile: Azercredit
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=VF+AzerCredit+LLC

MicroCapital Universe Profile: ProEmpresa
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=ProEmpresa

MicroCapital Universe Profile: Incofin Rural Impulse Funds (RIFs I and II)
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+Rural+Impulse+Funds+%28RIFs%29

MicroCapital Universe Profile: Incofin CVSO
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+cvso

MicroCapital Universe Profile: Incofin Investment Management
http://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=Volksvermogen

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