MICROCAPITAL BRIEF: responsAbility Lends $8.2m to Microfinance Institutions (MFIs) FINCA DRC, Bandhan of India, Opportunity Microcredit Romania

Switzerland’s responsAbility Social Investments AG (responsAbility) recently reported to MicroCapital that it has made loans amounting to USD 8.2 million to microfinance institutions (MFIs) FINCA DRC of the Democratic Republic of the Congo, Bandhan of India and Opportunity Microcredit Romania (OMRO). FINCA DRC received a total of USD 1 million disbursed through two microfinance investment vehicles (MIVs) managed by responsAbility: USD 700,000 through the responsAbility Global Microfinance Fund (rAGMF) and the remaining USD 300,000 through responsAbility Mikrofinanz-Fonds (rAMF). Bandhan received approximately USD 7 million disbursed to the following tranches: USD 3.5 million through rAGMF, about USD 1.7 million through responsAbility SICAV Microfinance Leaders Fund (rAMLF) and another USD 1.7 million through rAMF. OMRO received the local currency equivalent of USD 215,000 through rAMLF.

Established in 2003 and based in Democratic Republic of the Congo, FINCA DRC, a unit of US-based microfinance network FINCA International, serves rural and urban clients through group loans. As of 2010, FINCA DRC reported to US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 23.1 million, a gross loan portfolio of USD 15.2 million, approximately 61,800 borrowers, return on assets (ROA) of 7.69 percent and return on equity (ROE) of 42.1 percent.

Bandhan Financial Services Private Limited is a microfinance institution (MFI) based in Kolkata, India, that was founded in 2002. As of 2011, it operates approximately 1,550 branches in 18 states in India. It offers microenterprise loans as well as loans for individuals to pay for health emergencies. As of 2010, Bandhan Financial Services reported to MIX total assets of USD 614 million, a gross loan portfolio of USD 565 million, approximately 3.2 million borrowers, ROA of 5.32 percent and ROE of 41.1 percent.

Established in 2000, OMRO is a microfinance institution that offers loans, training and consulting services to support micro- and small-scale entrepreneurs in Romania. It is a member of the Opportunity International Network, a US-based network of microfinance organizations operating in 24 countries. As of 2010, OMRO reported to MIX total assets of USD 16.9 million, a gross loan portfolio of USD 13.1 million, approximately 2,120 borrowers, ROA of -3.17 percent and ROE of -40.83 percent.

Managed by responsAbility, rAGMF invests in 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. rAMLF, which is also managed by responsAbility, invests in large microfinance institutions (MFIs) through debt securities and equity investments. rAMF, which is managed by responsAbility and is funded by German financial institutions Bank im Bistum Essen and Stadtsparkasse Dusseldorf, invests in short- to medium-term income-bearing debt securities of MFIs. In April 2011, the MIVs’ annual labels were renewed by the Luxembourg Fund Labeling Agency (LuxFLAG), an organization that investigates whether investment vehicles actually support the microfinance sector. rAGMF reported to MIX fund assets of USD 532 million in 2011. For the same period, rAMLF reported fund assets of USD 155 million, and rAMF reported fund assets of USD 141 million.

By Kristha Abores, Research Associate

About FINCA DRC:
Established in 2003 and based in the Democratic Republic of the Congo, FINCA DRC is a microfinance institution (MFI) that serves rural and urban clients through group loans. As of 2010, FINCA DRC reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 23.1 million, a gross loan portfolio of USD 15.2 million, approximately 61,800 borrowers, return on assets (ROA) of 7.69 percent and return on equity (ROE) of 42.12 percent.

About FINCA International:
Founded in 1984 by Dr John Hatch, a pioneer of the village banking model, the Foundation for International Community Assistance (FINCA) International is a microfinance network based in Washington, DC, that provides financial services to poor families through a network of locally managed institutions. FINCA targets its services to poor women living in the Americas, sub-Saharan Africa and Eurasia. In the 2010 fiscal year, FINCA International served approximately 760,000 clients through its subsidiaries in 21 countries. As of 2010, it had total assets of USD 496 million, with an operating profit of USD 10 million.

About Bandhan:
Bandhan Financial Services Private Limited is a microfinance institution (MFI) based in Kolkata, India, that was founded in 2002. As of 2011, it operates approximately 1,550 branches in 18 states in India. It offers microenterprise loans as well as loans for individuals to pay for health emergencies. As of 2010, Bandhan Financial Services reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 614 million, a gross loan portfolio of USD 565 million, approximately 3.2 million borrowers, return on assets (ROA) of 5.32 percent and return on equity (ROE) of 41.1 percent.

About Opportunity Microcredit Romania:
Established in 2000, Opportunity Microcredit Romania (OMRO) is a microfinance institution that offers loans, training and consulting services to support micro- and small-scale entrepreneurs in Romania. It is a member of the Opportunity International Network, a network of microfinance organizations operating in 24 countries. As of 2010, OMRO reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 16.9 million, a gross loan portfolio of USD 13.1 million, approximately 2,120 borrowers, return on assets of -3.17 percent and return on equity of -40.83 percent.

About Opportunity International:
Based in the United States, Opportunity International is a nonprofit organization that was founded in 1971. Today, Opportunity International provides small business loans, savings, insurance and training to approximately two million poor people in 24 countries in Africa, Asia, South America and Eastern Europe. As of December 31, 2010, Opportunity International reported total assets of USD 150 million with an annual revenue of USD 32 million.

About 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. 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 Global Microfinance Fund (rAGMF):
The responsAbility Global Microfinance Fund (rAGMF) is a microfinance investment vehicle (MIV) managed by responsAbility Social Investments 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.

About responsAbility Mikrofinanz-Fonds (rAMF):
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 Bank im Bistum Essen eG (BiB):
Founded in 1966, Bank im Bistum Essen eG (BiB) is an “ethically oriented” German cooperative bank. Since 2007, BiB has supported poverty alleviation through global financial inclusion by funding microfinance institutions directly as well as through its Lux-Flag labelled microfinance investment vehicles KCD-Mikrofinanzfonds I “Global” and KCD Mikrofinanzfonds II “Lateinamerika.” Total outstanding microfinance investments managed directly by BiB reportedly total approximately USD 100 million. BiB is also co-initiator of the responsAbility Mikrofinanz-Fonds and investment advisor to the Dual Return – Vision Microfinance funds.

Sources and Additional Resources:
[1] Information submitted by responsAbility Social Investments AG to MicroCapital

MicroCapital.org article, October 17, 2011, “MICROCAPITAL BRIEF: responsAbility Global Microfinance Fund Lends $2.3m to Microfinance Institutions (MFIs) Coopronaranjo of Costa Rica, Fundación Amanecer of Colombia, COAC Esperanza y Progreso Del Valle of Ecuador”, https://www.microcapital.org/microcapital-brief-responsability-global-microfinance-fund-lends-2-3m-to-microfinance-institutions-mfis-coopronaranjo-of-costa-rica-fundacion-amanecer-of-colombia-coac-esperanza-y-progreso-del-v/…

MicroCapital.org article, September 26, 2011, “MICROCAPITAL BRIEF: responsAbility Loans $9.2m to Microfinance Institutions FINCA of Mexico, IDEPRO of Bolivia, EDPYME Alternativa of Peru, D-Miro of Ecuador”, https://www.microcapital.org/microcapital-brief-responsability-loans-9-2m…

MicroCapital.org article, July 14, 2011: “MICROCAPITAL BRIEF: responsAbility Loans $27m to Microfinance Institution Prizma of Bosnia and Herzegovina; Russia’s Forus Bank, NBD Bank, FINCA Russia”, https://www.microcapital.org/microcapital-brief-responsability-loans-27m-…

MicroCapital.org article, June 16, 2011: “MICROCAPITAL BRIEF: responsAbility Loans $6m to ProCredit Bank of Moldova, Foundation for International Community Assistance (FINCA) Russia, FINCA Jordan”, https://www.microcapital.org/microcapital-brief-responsability-loans-6m-to-procredit-bank-of-moldova-foundation-for-international-community-assistance-finca-russia-finca-jordan/…

MicroCapital Universe Profile: FINCA DRC, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+DRC

MicroCapital Universe Profile: FINCA International,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+International

MicroCapital Universe Profile: Bandhan Financial Services Private
Limited, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bandhan+Financial+Services+Private+Limited

MicroCapital Universe Profile: Opportunity Microcredit Romania, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Opportunity+Microcredit+Romania

MicroCapital Universe Profile: Opportunity
International, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Opportunity+International

MicroCapital Universe Profile:
responsAbility Social Investments AG, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility

MicroCapital Universe Profile: responsAbility
Global Microfinance Fund (rAGMF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Global+Microfinance+Fund+%28rAGMF%29

MicroCapital Universe Profile: responsAbility
Mikrofinanz-Fonds, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Mikrofinanz-Fonds

MicroCapital Universe Profile: Bank im Bistum Essen eG (BiB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bank+im+Bistum+Essen+eG+%28BiB%29

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/