responsAbility Social Investments AG (responsAbility), a social investment company based in Switzerland, reported to MicroCapital the details of six debt investments it made in September 2010 to Inecobank of Armenia, SEF International of Armenia and Kazmicrofinance (KMF) of Kazakhstan totaling USD 4.4 million.
The responsAbility Microfinance Leaders Fund (rAMLF), a microfinance investment vehicle (MIV) managed by responsAbility, loaned USD 1 million to Inecobank, a microfinance bank based in Armenia. The loan was made at a fixed annual interest rate of 6.5 percent for a period of 48 months. Inecobank has nine branches in Armenia serving 40,773 borrowers as of December 2009.
The responsAbility Global Microfinance Fund (rAGMF), another microfinance investment vehicle (MIV) managed by responsAbility, loaned SEF International, a microfinance institution founded in Armenia by US-based relief organization World Vision International, USD 300,000 at 8 percent interest for a period of 25 months. Additionally, responsAbility Mikrofinanz-Fonds, a microfinance investment vehicle managed by reponsAbility and financed by German banks Bank im Bistum Essen and Stadtsparkasse Dusseldorf, loaned SEF International USD 150,000 under the same terms. SEF International was founded in 1997 and as of year-end 2009 reports 4,501 active borrowers and a gross loan portfolio of USD 5.6 million.
Three responsAblitity MIVs made loans in local currency to KMF, a microfinance institution in Kazakhstan. rAGMF loaned KMF KZT 265 million (approximately USD 1.8 million) at 7.75 percent interest for 12 months. rAMLF and responsibility Mikrofinanz-Fonds each loaned KMF KZT 88 million (approximately USD 600,000) under the same terms. As of year-end 2009, KMF has 23,963 active borrowers and a gross loan portfolio of USD 31.2 million.
By Witt Gatchell, Research Associate
About responsAbility Social Investments AG:
Founded in 2003, responsAbility Social Investments AG of Switzerland is an investment company whose investment products aim to enable people in developing countries and emerging markets to access markets, information and other services in sectors such as microfinance, small and medium-sized (SME) financing, fair trade and independent media. It aims to enable private and institutional investors to contribute to positive social development while earning a financial return. According to calculations based on data on the Microfinance Information Exchange (MIX) from 2009 and 2010, responsAbility manages approximately USD 800 million in total assets.
About responsAbility Global Microfinance Fund (rAGMF):
rAGMF is a microfinance vehicle (MIV) managed by responsAbility that invests in microfinance institutions (MFIs) and microfinance investment vehicles (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 2010, its annual label was renewed by the Luxembourg Fund Labeling Agency (LuxFLAG), an independent organization that investigates whether microfinance investment vehicles actually support the microfinance sector. rAGMF reports to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, that it has USD 474 million in fund assets as of 2010.
About 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 microfinance information clearinghouse, that it holds USD 103 million in assets as of 2010. Luxembourg Fund Labeling Agency (LuxFLAG), an independent organization that investigates whether microfinance investment vehicles actually support the microfinance sector, renewed its certification of Mikrofinanz-Fonds as of April 2010.
About responsibility Microfinance Leaders Fund (rAMLF):
The responsAbility Microfinance Leaders Fund (rAMLF) is a microfinance investment vehicle, which mobilizes capital for microfinance institutions (MFIs). rAMLF invests in large microfinance institutions (MFIs) through debt securities and equity investments. Investments range from USD 50,000 to USD 1.5 million. LuxFLAG, an independent organization that certifies that microfinance vehicles actually invest in the microfinance sector, renewed rAMFL’s label as of April 2010.
About Inecobank:
Inecobank, a microfinance bank based in Armenia, was registered in 1996 with the Central Bank of Armenia. Inecobank provides comprehensive banking services with the aim of fostering the growth of small and medium-sized enterprises. The International Finance Corporation (IFC) holds 10 percent of Inecobank’s shares. Inecobank reports total assets of USD 129 million, a gross loan portfolio of 72.5 million, a return on assets of 2.15 percent and a return on equity of 10.16 percent as of December 2009.
About SEF International:
SEF International was founded by US-based Christian relief organization World Vision International in 1997 and since 2009 has been under VisionFund, a microfinance subsidiary of World Vision International. The organization aims to extend business development and financial services to emerging entrepreneurs in search of productive opportunities to support families and communities striving for decent life for children in Armenia. As of year-end 2009 the organization reported total assets of USD 8.8 million, a gross loan portfolio of USD 5.6 million and 4,501 active borrowers.
About Kazmicrofinance (KMF):
About KazMicroFinance LLC: KazMicroFinance LLC, founded in 1997, is a non-banking financial institution that offers training and individual and group loans across Kazakhstan. As of year-end 2009, KazMicroFinance reported to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, total assets of USD 48.2 million, a gross loan portfolio of USD 31.2 million, a return on assets of 3.31 percent, a return on equity of 14.81 percent and 23,963 active borrowers.
Sources and Additional Resources:
[1] Data submitted to MicroCapital by responsAbility in October 2010
MicroCapital’s Microfinance Universe profile: responsAbility
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=res…
MicroCapital’s Microfinance Universe profile: responsAbility Global Microfinance Fund
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=res…
MicroCapital’s Microfinance Universe profile: LuxFLAG
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Lux…
MicroCapital’s Microfinance Universe profile: responsAbility Mikrofinanz-Fondz
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=res…
MicroCapital’s Microfinance Universe profile: Inecobank
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Ine…
MicroCapital’s Microfinance Universe profile: Kazmicrofinance (KMF)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kaz…
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