The responsAbility Global Microfinance Fund, based in Switzerland founded in 2003, has executed debt investments totaling USD 4.6 million in four microfinance banks. The MIV reports total assets of USD 358 million as of 2009, and is one of four funds operated by responsAbility, the others being responsAbility Base of the Pyramid, responsAbility Mikrofinanz-Fonds and responsAbility Microfinance Leaders Fund.
The largest amount, USD 2.5 million, went to Inecobank, an Armenian bank founded in 1996 with a gross loan portfolio of USD 91.7 million [1].
Lazika Capita, founded in Georgia by Oxfam GB in 2000, is set to receive USD 1 million. Lazika has a gross loan portfolio of USD 4.7 million.
The MIV also released USD 600,000 to Aregak, a microfinance bank based in Armenia with a gross loan portfolio of USD 24.8 million.
Finally, responsAbility Global Microfinance Fund executed a RUB 15 million (USD 498,000) local currency investment in Centurion. Centurion does not report to MIX Market, the microfinance information clearinghouse.
By Matthew Castner, Research Assistant
About responsAbility Global Microfinance Fund:
The responsAbility Global Microfinance Fund (rAGMF) invests in microfinance institutions (MFIs) and microfinance investment vehicles (MIVs), mostly through short- to medium-term debt securities. rAGMF also invests up to 10 percent of its assets in the equity of MFIs. It is also certified by LuxFLAG as of April 2010.
About Inecobank:
Inecobank, a microfinance bank based in Armenia, was registered in 1996 with the Central Bank of Armenia. Inecobank provides comprehensive banking services with the aim of fostering the growth of micro-, small- and medium-sized enterprises. The International Finance Corporation (IFC) holds 10 percent of Inecobank’s shares. Inecobank reports total assets of USD 147 million, a gross loan portfolio of 91.7 million, a return on assets of 4.29 percent and a return on equity of 21.2 percent.
About Lazika Capital:
Oxfam GB, the British nonprofit advocating for social development, founded Lazika Capital in 2000, with the program achieving operational independence in 2003. Lazika Capital is headquartered in Zugdidi, Georgia. Lazika Capital reports total assets of USD 5 million, a gross loan portfolio of USD 4.7 million and a return on assets of 12.2 percent.
About Aregak:
Aregak was founded in 1998 as a part of the United Methodist Committee on Relief (UMCOR) to provide financial services to woman-headed households, refugees and displaced people in Armenia. Following Armenia’s creation of a legal framework for microfinance banks, Aregak became an independent licensed microfinance bank in 2006. Aregak reports total assets of USD 30.8 million, a gross loan portfolio of USD 24.8 million, return on assets of 4.02 percent and return on equity of 14.2 percent.
About Centurion:
Centurion Capital was formed in 2007 with the intent to provide capital to existing Russian microfinance institutions (MFIs). A cornerstone of Centurion’s on-lending strategy is to denominate all loans in rubles, stating that borrowers cannot afford to bear exchange rate risk. Centurion does not report to MIX Market, the microfinance information clearinghouse.
Additional Resources
UMCOR: “Celebrating 10 years of Micro-Financing in Armenia,” by Pamela J. Karg, August 20, 2008, http://new.gbgm-umc.org/umcor/newsroom/releases/archives08/aregak/
Centurion Capital: “Strategy,” http://centurioncapital.ru/eng/about/strategy/
MicroCapital’s Microfinance Universe profile: responsAbility Global Microfinance Fund: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Global+Microfinance+Fund+%28rAGMF%29
MicroCapital’s Microfinance Universe profile: Inecobank: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Inecobank
MicroCapital’s Microfinance Universe profile: Lazika Capital: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Lazika+Capital
MicroCapital’s Microfinance Universe profile: Aregak: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Aregak
MicroCapital’s Microfinance Universe profile: Centurion: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Centurion
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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