responsAbility Social Investments AG, a Swiss investment company that manages four microfinance investment vehicles (MIVs), recently reported to MicroCapital that it has made debt investments worth the equivalent of USD 27.4 million in NBD Bank, a commercial bank in Russia, and three microfinance institutions (MFIs): Microcredit Foundation Prizma of Bosnia and Herzegovina; FINCA Russia; and Forus Bank, also of Russia. The investments have been made through three MIVs: responsAbility Global Microfinance Fund (rAGMF), responsAbility Microfinance Leaders Fund (rAMLF) and responsAbility Mikrofinanz-Fonds.
In Bosnia and Herzegovina, the three MIVs have made a combined debt investment in Prizma worth USD 7.19 million, of which USD 6.48 million is in local currency. As of March 31, 2011, Prizma reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 73.4 million, a gross loan portfolio of USD 66 million, return on assets (ROA) of 0.92 percent, return on equity (ROE) of 4.37 percent and 44,700 active borrowers.
Forus Bank, a Russian deposit-taking MFI, has received debt investments from the three MIVs totalling USD 6 million, of which USD 4 million has been provided in local currency. As of December 31, 2009, Forus Bank reported to MIX total assets of USD 39 million, a gross loan portfolio of USD 33 million, ROA of -11.2 percent, ROE of -85.6 percent and approximately 10,000 active borrowers.
Through the three MIVs, responsAbility has made debt investments of USD 10 million in NBD Bank, a Russian commercial bank that lends to micro-, small and medium-sized enterprises (MSMEs). NBD Bank does not report to MIX, and financial information is not available in English on the organization’s website.
Finally, rAGMF and Mikrofinanz-Fonds have made local-currency debt investments of USD 4.18 million in FINCA Russia. FINCA Russia is a subsidiary of FINCA International, a US-based nonprofit that operates a network of MFIs in 21 countries. As of December 31, 2010, FINCA Russia reported to MIX total assets of USD 28.7 million, a gross loan portfolio of USD 22.1 million, ROA of 3.22 percent, ROE of 15.8 percent and 8,000 active borrowers.
According to calculations based on data from MIX from 2009 and 2010, responsAbility manages approximately USD 800 million in total assets.
By Rohan Trivedi, Research Associate
About Microcredit Foundation Prizma:
Prizma is a microfinance institution (MFI) that provides credit products in Bosnia and Herzegovina. Prizma began operations in 1997 under the name “Project Enterprise” and was registered with the national microcredit registry in 2001 under the name Microcredit Organization Prizma. As of March 31, 2011, Prizma reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 73.4 million, a gross loan portfolio of USD 66 million, return on assets (ROA) of 0.92 percent, return on equity (ROE) of 4.37 percent and 44,700 active borrowers.
About Forus Bank:
Forus Bank is a banking microfinance institution (MFI) that was founded in 2005 in Nizhniy Novgorod, Russia, by the Fora Fund, a local nonprofit microfinance organization. Forus Bank offers a range of financial services for micro- and small businesses, covering 11,000 customers through a 42-branch network. As of December 31, 2009, Forus Bank reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 39 million, a gross loan portfolio of USD 33 million, return on assets (ROA) of -11.2 percent, return on equity (ROE) of -85.6 percent and approximately 10,000 active borrowers.
About NBD Bank:
NBD Bank is a commercial bank based in Nizhny Novgorod, Russia, that specializes in loans to micro-, small and medium-sized enterprises (MSMEs). Founded in 1992, its products include loans, leasing, deposits and settlement and cash services. As of December 12, 2007, the bank has a network of 17 offices in three Russian regions: the Chuvash Repsublic, Nizhny Novgorod and Ivanovo. NBD Bank does not report to the US-based nonprofit Microfinance Information Exchange (MIX) and financial information is not available in English on the organization’s website.
About FINCA Russia:
FINCA Russia is a microfinance institution (MFI) and subsidiary of FINCA International, a US-based nonprofit microfinance network that serves approximately 700,000 people through its microfinance subsidiaries in 21 countries. As of December 31, 2010, FINCA Russia reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 28.7 million, a gross loan portfolio of USD 22.1 million, return on assets (ROA) of 3.22 percent, return on equity (ROE) of 15.8 percent and 8,000 active borrowers.
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 serves approximately 700,000 people through its subsidiaries in 21 countries. As of 2009, it had total assets of USD 467 million, with an operating profit of USD 742,000.
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. 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 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 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) that it had USD 474 million in fund assets as of 2010.
About responsAbility Microfinance Leaders Fund (rAMLF):
The responsAbility Microfinance Leaders Fund (rAMLF) invests in large microfinance institutions (MFIs) through debt securities and equity investments. rAMLF reported to the US-based, nonprofit Microfinance Information Exchange (MIX) that it had USD 160 million in fund assets as of 2010. LuxFLAG, an independent organization that certifies that microfinance vehicles actually invest in the microfinance sector, renewed rAMFL’s label in March 2011.
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 microfinance institutions (MFIs) through debt securities and equity investments. Mikrofinanz-Fonds reports to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, that it held USD 103 million in assets as of 2010. Luxembourg Fund Labeling Agency (LuxFLAG), an organization that investigates whether investment vehicles actually support the microfinance sector, renewed its certification of Mikrofinanz-Fonds in March 2011.
Sources and Additional Resources:
[1] Information submitted by responsAbility to MicroCapital, July 2011.
MicroCapital.org story, June 17, 2011: “MICROCAPITAL BRIEF: responsAbility Loans $3.9m to Microfinance Institutions (MFIs) Arvand of Tajikistan, Mol Bulak of Kyrgyzstan, Constanta and Lazika Capital, Both of Georgia
MicroCapital.org story, 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.org story, June 24, 2011: “MICROCAPITAL BRIEF: FINCA International Announces Launch of FINCA Microfinance Holdings With Investments of $74m from IFC, KfW, FMO, responsAbility, Triple Jump”, https://www.microcapital.org/microcapital-brief-finca-international-announces-launch-of-finca-microfinance-holdings-with-investments-of-74m-from-ifc-kfw-fmo-responsability-triple-jump/
MicroCapital.org story, April 20, 2010: “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) to Provide $18.5m Loan to NBD Bank, a Commercial Bank in Russia that Specializes in Lending to Micro, Small, and Medium-Sized Enterprises (MSMEs)”, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-to-provide-185m-loan-to-nbd-bank-a-commercial-bank-in-russia-that-specializes-in-lending-to-micro-small-and-medium-size/
MicroCapital.org story, December 12, 2006: “Swiss ResponsAbility Global Microfinance Fund Loans USD 1 million to Russian Forus Bank”, https://www.microcapital.org/swiss-reponsability-global-microfinance-fund-loans-usd-1-million-to-russian-forus-bank/
MicroCapital Universe Profile: Microcredit Foundation Prizma, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microcredit+Foundation+Prizma
MicroCapital Universe Profile: Forus Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Forus+Bank
MicroCapital Universe Profile: NBD Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=NBD+Bank
MicroCapital Universe Profile: FINCA Russia, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+Russia
MicroCapital Universe Profile: FINCA International, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+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 Microfinance Leaders Fund (rAMLF): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Microfinance+Leaders+Fund+%28rAMLF%29
MicroCapital Universe Profile: responsAbility Mikrofinanz-Fonds, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Mikrofinanz-Fonds
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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