ResponsAbility Social Investments, a Swiss company with a focus on microfinance, recently notified MicroCapital that it disbursed a loan of CNY 60 million (USD 9.5 million) to Chinese microfinance institution (MFI) MicroCred Nanchong, a member of the France-based MicroCred. The loan, which was disbursed in May 2013, will support the growth of the firm’s portfolio in microfinance in the Province of Sichuan, China. Further details, such as the terms of the loan, have not been released.
According to the US-based nonprofit Microfinance Information Exchange (MIX), MicroCred Nanchong has a gross loan portfolio of USD 32 million, total assets of USD 34.6 million, return on assets of 7.28 percent, return on equity of 14.11 percent and 7,310 active borrowers, but does not take deposits as of December 2012. The MicroCred Group as a whole has total assets of EUR 108 million (USD 142 million) and operates in China, Madagascar, Senegal, Cote D’Ivoire and Nigeria as of 2011. As of June 2013, responsAbility reported total assets under management of approximately USD 1.4 billion.
By Michael Averell, Research Associate
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 June 2013, responsAbility reported total assets under management of approximately USD 1.4 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 MicroCred Group
MicroCred Group creates microfinance institutions (MFIs) and provides technical assistance to MFIs. MicroCred was created by French NGO PlaNet Finance and three investors: the International Finance Corporation (IFC), Société Générale and AXA Belgium. Those founding shareholders were joined by the French Development Agency (AFD in French) and the European Investment Bank (EIB) in 2007 and Developing World Markets (DWM) in 2008. MicroCred has operations in China, Madagascar, Senegal, Cote D’Ivoire and Nigeria. For 2011 MicroCred Group reported total assets of EUR 108 million (USD 142 million). MicroCred Nanchong of China, founded in 2006, held a gross loan portfolio of USD 32 million, total assets of USD 34.6 million, return on assets of 7.28 percent and return on equity of 14.11 percent as of December 2012.
Sources and Additional Resources
Information reported directly to MicroCapital by responsAbility
Microfinance Information Exchange (MIX): “MicroCred Nanchong MFI Report.” , http://www.mixmarket.org/mfi/microcred-nanchong
MicroCapital story, May 3, 2013, “MICROCAPITAL BRIEF: responsAbility Loans $8m to Banco Pichincha of Ecuador,” https://www.microcapital.org/microcapital-brief-responsability-loans-8m-to-banco-pichincha-of-ecuador/
MicroCapital story, March 16, 2013, “MICROCAPITAL BRIEF: Swiss Investment Company responsAbility Increases Debt Exposure to Bai Tushum & Partners of the Kyrgyz Republic to $11m,” https://www.microcapital.org/microcapital-brief-swiss-investment-company-responsability-increases-debt-exposure-to-bai-tushum-partners-of-the-kyrgyz-republic-to-11m/
MicroCapital story, February 23, 2012, “MICROCAPITAL BRIEF: BNP Paribas China Enters Microfinance With $2.3m Loan to MicroCred Nanchong,” https://www.microcapital.org/microcapital-brief-bnp-paribas-china-enters-microfinance-with-2-3m-loan-to-microcred-nanchong/
MicroCapital story, August 27, 2008, “NEWS WIRE: China: AIG Announces Investment in MicroCred Nanchong,” https://www.microcapital.org/news-wire-china-aig-announces-investment-in-microcred-nanchong/
MicroCapital Universe Profile: responsAbility
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility
MicroCapital Universe Profile: MicroCred Group
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MicroCred
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