Germany-based Invest in Visions (IIV) recently announced that it loaned USD 3 million during May 2018 to Vision Banco Paraguay, a microfinance institution (MFI) providing credit and deposit services to individuals as well as small and medium-sized enterprises (SMEs). IIV executed the investment via its microfinance vehicle, IIV Mikrofinanzfonds, a fund that lends to MFIs operating in developing countries. Including this loan, IIV Mikrofinanzfonds loaned USD 23 million and EUR 15 million (USD 17 million) during the month to MFIs located in Ecuador, Kazakhstan, Kyrgyzstan and Paraguay.
Vision Banco, which was established in 1992 and is based in the city of Asuncion, seeks to assist “marginalized economic actors to access financial services in Paraguay.” As of May 2018, the firm had approximately 236,000 borrowers and a gross loan portfolio of USD 851 million. As of December 2017, it reported total assets of PYG 5.6 trillion (USD 996 million) and PYG 4.9 trillion (USD 866 million) in client deposits.
IIV was founded in 2006, and it launched IIV Mikrofinanzfonds in 2011. The fund, which focuses on investing in small and medium-sized MFIs in rural areas, accepts investments as small as EUR 100 (USD 118). As of May 2018, it has a volume of EUR 554 million (USD 664 million). Since inception, IIV Mikrofinanzfonds has produced annualized returns averaging around 2.4 percent, depending on share class. In addition to microfinance, IIV offers services in sectors such as “sustainable” agriculture and social enterprises.
By Nicholas Galimberti, Research Associate
Sources and Additional Resources
IIV fact sheet
https://www.investinvisions.com/files/5_mai_iiv_mikrofinanzfonds_factsheet_englisch_5.pdf
Vision Banco Paraguay background
https://www.visionbanco.com/nosotros/sobre-el-banco
Vision Banco Paraguay financials
https://www.visionbanco.com/files/memorias-sostenibilidad/MemoriadeSostenibilidad2017.pdf
IIV background
https://www.investinvisions.com/en/
MicroCapital article; May 16, 2018; Invest in Visions’ IIV Mikrofinanzfonds Lends $6.5m to KMF for Microfinance in Kazakhstan
https://www.microcapital.org/microcapital-brief-invest-in-visions-iiv-mikrofinanzfonds-lends-6-5m-to-kmf-for-microfinance-in-kazakhstan
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