responsAbility Social Investments AG, a Swiss investment company that operates four microfinance investment vehicles (MIVs), recently reported to MicroCapital that it has made debt investments totalling USD 3.9 million in microfinance institutions (MFIs) Arvand of Tajikistan, Mol Bulak Finance of Kyrgyzstan, Joint Stock Company (JSC) Bank Constanta of Georgia and JSC Lazika Capital of Georgia. The investments have been made through two MIVs: the responsAbility Global Microfinance Fund (rAGMF) and responsAbility Microfinance Leaders Fund (rAMLF).
In Tajikistan, rAGMF and rAMLF have made combined debt investments of USD 750,000 in Arvand, a deposit-taking MFI. As of December 2009, Arvand reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 5.3 million, a gross loan portfolio of USD 4.1 million, total deposits of USD 10,000, return on assets (ROA) of 3.17 percent, return on equity (ROE) of 22.1 percent, approximately 7,800 borrowers and 390 depositors.
In Kyrgyzstan, rAGMF and rAMLF have made combined investments of USD 1.4 million in Mol Bulak, a provider of group and individual loans to rural populations. As of March 31, 2011, Mol Bulak reported to MIX total assets of USD 36.5 million, a gross loan portfolio of USD 30 million, ROA of 12.4 percent, ROE of 44.3 percent and 69,000 active borrowers.
In Georgia, rAMLF has made a debt investment of USD 1.25 million in JSC Bank Constanta, a provider of credit, savings and training services. As of December 31, 2010, Constanta reported to MIX total assets of USD 48 million, a gross loan portfolio of USD 39 million, total deposits of USD 1 million, ROA of 1.9 percent, ROE of 11 percent, approximately 17,000 borrowers and 16,000 depositors.
Also in Georgia, rAGMF has made a debt investment of USD 500,000 in JSC Lazika Capital, a non-banking MFI that provides loans to low-income people. As of December 31, 2010, Lazika reported to MIX a gross loan portfolio of USD 7.7 million and approximately 8,800 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 Arvand:
Established in Tajikistan in 2002 by ACDI/VOCA (Agricultural Cooperative Development International/Volunteers in Overseas Cooperative Assistance), a US-based nonprofit, Arvand was set up to provide microcredit to low-income individuals in urban areas. In addition to microcredit, Arvand provides deposit and microleasing services to its clients. As of December 2009, Arvand reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 5.3 million, a gross loan portfolio of USD 4.1 million, total deposits of USD 10,000, return on assets (ROA) of 3.17 percent, return on equity (ROE) of 22.1 percent, approximately 7,800 borrowers and 390 depositors.
About Mol Bulak Finance:
Mol Bulak is a microfinance institution (MFI) that was first established in the Issyk-Kul region of Kyrgyzstan in 2005. It provides small, unsecured loans for individuals and groups, primarily women, living in rural communities to support and encourage their economic development through the creation of small enterprise. As of March 31, 2011, Mol Bulak reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 36.5 million, a gross loan portfolio of USD 30 million, return on assets (ROA) of 12.4 percent, return on equity (ROE) of 44.3 percent and 69,000 active borrowers.
About JSC Bank Constanta:
Constanta has been working in Georgia since 1997, providing microfinance services to micro- and small businesses. In December 2007, Constanta started operations as a joint stock company (JSC) and soon received a license from the National Bank of Georgia (NBG) to conduct commercial banking operations under the name JSC Bank Constanta. As of December 31, 2010, Constanta reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 48 million, a gross loan portfolio of USD 39 million, total deposits of USD 1 million, return on assets (ROA) of 1.9 percent, return on equity (ROE) of 11 percent, approximately 17,000 borrowers and 16,000 depositors.
About JSC 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, and operates as a joint stock company (JSC). As of December 31, 2010, Lazika reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) a gross loan portfolio of USD 7.7 million and approximately 8,800 active borrowers.
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.
Sources and Additional Resources:
[1] Data submitted by responsAbility Social Investments AG to MicroCapital, June 2011
MicroCapital.org story, April 5, 2011: “MICROCAPITAL BRIEF: responsAbility Makes Debt Investments Worth $7.5m in FINCA Kyrgyzstan, Mol Bulak of Kyrgyzstan, Constanta of Georgia, BZMF of Kosovo, GafGaz Leasing of Azerbaijan”, https://www.microcapital.org/microcapital-brief-responsability-makes-debt-investments-worth-7-5m-in-finca-kyrgyzstan-mol-bulak-of-kyrgyzstan-constanta-of-georgia-bzmf-of-kosovo-gafgaz-leasing-of-azerbaijan/
MicroCapital Universe Profile: Arvand, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Arvand
MicroCapital Universe Profile: Mol Bulak Finance, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mol+Bulak+Finance
MicroCapital Universe Profile: JSC Bank Constanta, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=JSC+Bank+Constanta
MicroCapital Universe Profile: Lazika Capital, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Lazika+Capital
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+Global+Microfinance+Fund+%28rAGMF%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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