responsAbility Social Investments AG, a Swiss investment company that manages four microfinance investment vehicles (MIVs), recently reported to MicroCapital that it has made debt and equity investments totaling the equivalent of USD 5.5 million in two microfinance institutions (MFIs), TBC Kredit of Azerbaijan and Kazmicrofinance Limited Liability Company (KMF) of Kazakhstan, and microfinance investment vehicle ACCION Investments in Microfinance, which was established by US-based nonprofit ACCION International [1]. The investments have been made through three MIVs: responsAbility Global Microfinance Fund (rAGMF), responsAbility Microfinance Leaders Fund (rAMLF) and responsAbility Mikrofinanz-Fonds.
TBC Kredit (TBC), a non-banking credit organization, received USD 1 million from rAGMF. As of 2010, TBC reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 21.4 million, a gross loan portfolio of USD 19.2 million, return on assets (ROA) of 0.91 percent, return on equity (ROE) of 1.6 percent and approximately 1,700 borrowers.
KMF, a non-banking financial institution that offers training as well as individual and group loans, received a combined local-currency debt investment equivalent of USD 2.5 million from rAGMF and Mikrofinanz-Fonds. As of 2010, KMF reported to MIX total assets of USD 44.3 million, a gross loan portfolio of USD 36.5 million, ROA of 8.09 percent, ROE of 29.1 percent and approximately 30,300 active borrowers.
ACCION Investments in Microfinance Special Purpose Company (SPC), which invests in MFIs in emerging markets and has USD 13 million in assets, received equity investments totaling USD 2 million from rAGMF and rAMLF.
As of September 2011, responsAbility reported total assets under management of approximately USD 1 billion.
By Nisha Koul, Research Associate
About TBC Kredit (TBC): TBC Kredit, based in Azerbaijan, is a non-banking credit organization that aims to enable small and medium-sized enterprises to improve their competitiveness as well as improve access to financial products for middle-income individuals. As of 2010, TBC reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 21.4 million, a gross loan portfolio of USD 19.2 million, return on assets (ROA) of 0.91 percent, return on equity (ROE) of 1.6 percent and approximately 1,700 borrowers. TBC is owned by ShoreBank International, a member of ShoreBank Group, USA and by TBC Bank, a Georgian Bank.
About Kazmicrofinance Limited Liability Company (KMF): Kazmicrofinance LLC, founded in 1997, is a non-banking financial institution that offers training as well as individual and group loans across Kazakhstan. As of 2010, KMF reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 44.3 million, a gross loan portfolio of USD 36.5 million, return on assets (ROA) of 8.09 percent, return on equity (ROE) of 29.1 percent and approximately 30,300 active borrowers.
About ACCION Investments in Microfinance SPC: ACCION Investments provides equity and quasi-equity financing to microfinance institutions (MFIs). Its investors include various government entities and private investors. ACCION Investments is managed by ACCION Investments Management Company, LLC, a subsidiary of US-based nonprofit ACCION International. As of 2011, ACCION Investments’ portfolio consists primarily of equity investments in MFIs in Latin America and Africa. It reports having USD 13 million in assets and has a parallel technical assistance facility with USD 2 million in commitments.
About ACCION International: ACCION International is a private, US-based nonprofit organization with the mission of alleviating poverty by providing financial products such as microenterprise loans and business training to its clients. ACCION was founded in 1961 and issued its first microloan in 1973 in Brazil. ACCION’s partner microfinance institutions provide loans to men and women entrepreneurs in 22 countries in Latin America, Asia, Africa and the United States. As of 2010, ACCION’s network serves 3.18 million active clients and has an active loan portfolio of USD 3.81 billion.
About responsAbility Social Investments AG: 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. As of September 2011, responsAbility reported total assets under management of approximately USD 1 billion. 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 Mikrofinanz-Fonds: Mikrofinanz-Fonds is a microfinance investment vehicle (MIV) that was launched in 2007, is managed by responsAbility Social Investments AG of Switzerland and is funded by German financial institutions Bank im Bistum Essen and Stadtsparkasse Dusseldorf. It invests in short to medium-term income-bearing debt securities of microfinance institutions (MFIs). In April 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. Mikrofinanz-Fonds reported to the US-based nonprofit Microfinance Information Exchange (MIX) fund assets of USD 141 million in 2011.
About responsAbility Global Microfinance Fund (rAGMF): The responsAbility Global Microfinance Fund (rAGMF) is a microfinance investment vehicle (MIV) managed by responsAbility 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 April 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 532 million in 2011.
About responsAbility Microfinance Leaders Fund (rAMLF): The responsAbility Microfinance Leaders Fund (rAMLF) invests in large microfinance institutions (MFIs) through debt securities and equity investments. In April 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. rAMLF reported to the US-based nonprofit Microfinance Information Exchange (MIX) fund assets of USD 155 million in 2011.
Sources and Additional Resources:
[1] Information submitted by responsAbility Social Investments AG to MicroCapital, October 2011
MicroCapital.org story, October 11, 2010, “MICROCAPITAL BRIEF: responsAbility Social Investments Makes Debt Investments Totaling $4.4m in Microfinance Institutions (MFIs) Inecobank and SEF International of Armenia and Kazmicrofinance (KMF) of Kazakhstan,” https://www.microcapital.org/microcapital-brief-responsability-social-investments-makes-debt-investments-totaling-4-4m-in-microfinance-institutions-mfis-inecobank-and-sef-international-of-armenia-and-kazmicrofinance-kmf-of/
MicroCapital.org story, August 13, 2011, “MICROCAPITAL BRIEF: responsAbility Disburses $4m in Loans and Equity to Bai Tushum of Kyrgyz Republic; Arnur Credit, Bereke of Kazakhstan,” https://www.microcapital.org/microcapital-brief-responsability-disburses-4m-in-loans-and-equity-to-bai-tushum-of-kyrgyz-republic-arnur-credit-bereke-of-kazakhstan/
MicroCapital Universe Profile: TBC Kredit (TBC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=TBC+Kredit
MicroCapital Universe Profile: Kazmicrofinance LLC (KMF): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=KazMicroFinance
MicroCapital Universe Profile: ACCION Investments in Microfinance SPC, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ACCION+Investments+in+Microfinance+SPC
MicroCapital Universe Profile: ACCION International, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ACCION+International
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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