MICROCAPITAL BRIEF: Invest in Visions’ IIV Mikrofinanzfonds Lends $13m to China Foundation for Poverty Alleviation (CFPA) for Microfinance Lending

Germany-based Invest in Visions (IIV) recently announced that it has disbursed a loan of USD 13 million to the China Foundation for Poverty Alleviation (CFPA) from IIV Mikrofinanzfonds, a microfinance investment vehicle that is active in developing countries. CFPA, an NGO in China, was established in 1989 and began providing microfinance services in 1996 with funding from the World Bank. Of its loans, 97 percent are deployed in rural areas, 92 percent are outstanding to women and 77 percent are for microentrepreneurship. As of 2018, the institution has a gross loan portfolio of USD 1.1 billion and 366,000 borrowers. CFPA does not accept deposits. In addition to microlending, it is involved in providing disaster relief and other services, in part through partnerships with companies such as Kentucky Fried Chicken, Tencent and Walmart.

IIV was founded in 2006, and it launched IIV Mikrofinanzfonds in 2011. The fund, which focuses on investing in small and medium-sized microfinance institutions (MFIs) in rural areas, accepts investments as small as EUR 100 (USD 112). As of May 2019, it has a volume of EUR 698 million (USD 789 million). Since June 2014, IIV Mikrofinanzfonds, across its two share classes, produced 12-month net returns ranging from 0.2 percent to 3.3 percent. IIV Mikrofinanzfonds’ investments enable loans to 281,000 microentrepreneurs, comprising 50 percent women, with an average loan size of USD 2,785. In addition to microfinance, IIV offers services in areas such as “sustainable” agriculture and social enterprise in general.

By Eugene DeCosse, Research Associate

Sources and Additional Resources

IIV report, May 2019
https://www.investinvisions.com/files/1905_factsheet_mai_2019_englisch.pdf

IIV homepage
https://www.investinvisions.com/

CFPA homepage
http://en.cfpa.org.cn/

MIX Market profile on CFPA
https://www.themix.org/mixmarket/profiles/cfpa

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