MICROCAPITAL BRIEF: Invest in Visions’ IIV Mikrofinanzfonds Lends $4.7m to Microfinance Institution ASA Pakistan

Germany-based Invest in Visions (IIV) recently announced that it loaned USD 4.7 million in July to ASA Pakistan, a microfinance institution (MFI) in Pakistan. IIV disbursed the loan from its microfinance investment vehicle, IIV Mikrofinanzfonds, which lends to MFIs in developing countries. Including this loan, IIV Mikrofinanzfonds loaned USD 15 million during the month to otherwise undisclosed MFIs in Ecuador, Pakistan, Paraguay and Tajikistan.

ASA Pakistan is a subsidiary of ASA International, a holding company with offices in Bangladesh and the Netherlands. ASA International was co-founded by Md Shafiqual Haque Choudhury, the founder and President of ASA, a regulated nonprofit MFI formerly known as the Association for Social Advancement. The NGO provides savings, lending, health, education, agricultural and sanitation services primarily in rural Bangladesh. As of 2017, ASA International’s holdings include 12 MFIs in Asia and Africa that operate 1,400 branches and have an aggregate gross loan portfolio of USD 299 million outstanding to 1.8 million borrowers.

Incorporated in 2008, ASA Pakistan focuses on individuals and microentrepreneurs in the country’s low-income areas. As of July 2018, ASA Pakistan reported a gross loan portfolio of USD 68 million distributed among approximately 388,000 clients. As of June 2018, it had 256 branches and reported total assets of USD 89 million. The MFI does not accept 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 July 2018, it has a volume of EUR 584 million (USD 683 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 enterprise.

By Nicholas Galimberti, Research Associate

Sources and Additional Resources

Direct contact with ASA International

IIV Fact Sheet for July 2018
https://www.investinvisions.com/files/7_juli_iiv_mikrofinanzfonds_factsheet_englisch_7.pdf

ASA Pakistan background
http://www.asapakistan.com/DisplayPage.aspx?id=8

Microfinance Information Exchange (MIX): ASA Pakistan profile
https://www.themix.org/mixmarket/profiles/asa-pakistan

ASA International background
https://www.asa-international.com/about-us/at-a-glance/

MicroCapital Brief; July 19, 2018; Invest in Visions’ IIV Mikrofinanzfonds Lends $5m to Ghabbour Auto’s Tasaheel Microfinance of Egypt
https://www.microcapital.org/microcapital-brief-invest-in-visions-iiv-mikrofinanzfonds-lends-5m-to-ghabbour-autos-tasaheel-microfinance-of-egypt/

MicroCapital Brief; June 25, 2018; Microfinance Holding Company ASA International to Trade on London Stock Exchange, Citigroup Coordinating IPO
https://www.microcapital.org/microcapital-brief-microfinance-investor-asa-international-of-mauritius-to-trade-on-london-stock-exchange-citigroup-coordinating-ipo/

MicroCapital Brief; July 24, 2017; Netherlands’ FMO Lending $7.5m to ASA Pakistan for Microloans, Financial Education for 50k Women
https://www.microcapital.org/microcapital-brief-netherlands-fmo-lending-7-5m-asa-pakistan-microloans-financial-education-50k-women/

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