responsAbility Social Investments AG (responsAbility), a Swiss asset management company that invests in microfinance institutions (MFIs) and microfinance investment vehicles (MIVs), recently reported to MicroCapital that it made investments totaling the equivalent of USD 4 million in Bai Tushum of the Kyrgyz Republic, Arnur Credit of Kazakhstan and Bereke of Kazakhstan. The investments were made through responsAbility Global Microfinance Fund (rAGMF), an MIV that is managed by responsAbility and invests in MFIs and other MIVs mostly through short- to medium-term debt securities.
In the Kyrgyz Republic, rAGMF completed a debt investment of USD 2.6 million and an equity investment of USD 1.3 million in Bai Tushum, an MFI that aims to further economic development in both rural and urban areas of the country. As of December 31, 2010, Bai Tushum reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 59 million and a gross loan portfolio of USD 38.5 million.
rAGMF loaned the local-currency equivalent of USD 797,000 to Arnur Credit. As of December 31, 2010, Arnur Credit reported to MIX total assets of USD 7.5 million and a gross loan portfolio of USD 6.1 million.
In addition, rAGMF provided debt investment in local-currency equivalent to USD 498,000 to Bereke. As of December 31, 2010, Bereke reported to MIX total assets of USD 4.3 million and a gross loan portfolio of USD 4.0 million.
By Carol Kim, Research Associate
About responsAbility Social Investments AG (responsAbility): Founded in 2003, responsAbility Social Investments AG is a Swiss investment company whose products aim to enable investors to earn a financial return while assisting people in emerging markets to access information and markets in sectors such as microfinance, small and medium-sized enterprise (SME) financing, fair trade and independent media. According to calculations based on data from the Microfinance Information Exchange (MIX) from 2009 and 2010, responsAbility manages approximately USD 800 million in total assets. responsAbility is backed by Swiss financial institutions and a social venture capital company as founders and shareholders including Baumann & Cie, Banquiers, Credit Suisse, Raiffeisen Schweiz, Swiss Re, Bank Vontobel AG as well as George Avenue.
About responsAbility Global Microfinance Fund (rAGMF): rAGMF is a microfinance investment vehicle (MIV) managed by Switzerland’s responsAbility Social Investments AG that invests in microfinance institutions (MFIs) and other MIVs, mostly through short- to medium-term debt securities. rAGMF also invests up to 10 percent of its assets in the equity of MFIs. In March 2011, its annual label was renewed by the Luxembourg Fund Labeling Agency (LuxFLAG), an organization that investigates whether investment vehicles actually support the microfinance sector. rAGMF reported to the US-based nonprofit Microfinance Information Exchange (MIX) fund assets of USD 474 million for 2010.
About Bai Tushum and Partners: Bai Tushum and Partners is a microfinance institution (MFI) based in the Kyrgyz Republic. Bai Tushum’s mission is to contribute as a financial partner to the economic development of the Kyrgyz Republic through the delivery of microfinance services that lead to increased employment and otherwise meet the interests of its clients and investors. Bai Tushum’s products include agriloans; trade, service, and production loans; mortgage loans; consumer loans; and equipment financing. According to the US-based nonprofit Microfinance Information Exchange, as of December 31, 2010, Bai Tushum reported total assets of USD 59 million, a gross loan portfolio of USD 38.5 million, return on assets (ROA) of 4.48 percent, return on equity (ROE) of 21.9 percent and 29,600 active borrowers.
About Arnur Credit: Arnur Credit is a microfinance institution (MFI) that provides microcredit in Kazakhstan. As of December 31, 2010, Arnur Credit reported to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, USD 7.5 million in assets, a gross loan portfolio of USD 6.1 million, return on assets (ROA) of 2.23 percent, return on equity (ROE) of 6.13 percent and 3,175 active borrowers.
About Bereke: Bereke is a microlending organization based in northeastern Kazakhstan that began as part of the United Nations’ Development Program (UNDP) before being registered as a public fund by the Ministry of Justice of the Republic of Kazakhstan in March 2003. Bereke’s mission is to empower women and alleviate poverty by providing microcredit to entrepreneurs. As of December 31, 2010, Bereke reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 4.3 million, a gross loan portfolio of USD 4.0 million, approximately 7,000 borrowers, return on assets (ROA) of 10.50 percent and return on equity (ROE) of 15.22 percent.
Sources and Additional Resources:
[1] Data submitted by responsAbility Social Investments AG to MicroCapital, August 2011
MicroCapital.org: “MICROCAPITAL BRIEF: responsAbility Loans $8m to Kompanion of Kyrgyz Republic, Eskhata of Tajikistan, XacBank of Mongolia”, July 15, 2011, https://www.microcapital.org/microcapital-brief-responsability-loans-8m-to-kompanion-of-kyrgyz-republic-eskhata-of-tajikistan-xacbank-of-mongolia/
MicroCapital.org: “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Loans $6m in Local Currency to Microfinance Institution (MFI) Bai Tushum of Kyrgyz Republic”, July 12, 2011, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-loans-6m-in-local-currency-to-microfinance-institution-mfi-bai-tushum-of-kyrgyz-republic/
MicroCapital.org: “MICROCAPITAL BRIEF: Triodos Invests in Microfinance Institutions (MFIs) KixiCrédito of Angola, Advans Ghana, Arnur Credit of Kazakhstan, Belarusian Bank for Small Business, Kompanion of Kyrgyzstan”, June 15, 2010, https://www.microcapital.org/microcapital-brief-triodos-invests-in-microfinance-institutions-mfis-kixicredito-of-angola-advans-ghana-arnur-credit-of-kazakhstan-belarusian-bank-for-small-business-kompanion-of-kyrgyzstan/
MicroCapital’s Universe Profile: responsAbility Social Investments AG (responsAbility), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility
MicroCapital’s Universe Profile: responsAbility Global Microfinance Fund (rAGMF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Global+Microfinance+Fund+%28rAGMF%29
MicroCapital’s Universe Profile: Bai Tushum and Partners, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bai+Tushum+and+Partners
MicroCapital’s Universe Profile: Arnur Credit, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Arnur+Credit
MicroCapital’s Universe Profile: Bereke, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bereke
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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