responsAbility Social Investments AG, an investment company based in Switzerland, recently reported to MicroCapital that it has made debt investments totaling the equivalent of approximately USD 8.25 million in microfinance institutions (MFIs) in Colombia, Ecuador, Paraguay and Mexico.
The investments, all made through the responsAbility Global Microfinance Fund (rAGMF), a microfinance investment vehicle (MIV) managed by responsAbility, includes a USD 4 million loan to Vision Banco, an MFI in Paraguay. As of September 2010, Vision Banco reported USD 425 million in total assets, return on assets (ROA) of 2.75 percent and return on equity (ROE) of 35.6 percent.
The investments also included a loan of USD 2 million to COAC Esperanza y Progreso Del Valle (COAC Progreso), a microfinance institution (MFI) in Ecuador. As of 2007, the latest date for which information is available, COAC Progreso had USD 389,000 in total assets. A local-currency loan totaling the equivalent of USD 1.49 million was also made to Forjadores de Negocios, an MFI in Mexico. As of 2009, Forjadores de Negocios reported USD 7.89 million in total assets, ROA of -10.5 percent and ROE of -83.4 percent
rAGMF made a local-currency investment totaling the equivalent of USD 518,000 in Corporacion Narino Empresa y Futuro (Contactar), a Colombian MFI established in 1995. As of 2009, Contactar had 19 branches, 20,100 active borrowers, a gross loan portfolio (GLP) of USD 14.7 million, ROA of 10.40 percent and ROE of 24.31 percent.
Lastly, rAGMF loaned USD 250,000 to Fundación Alternativa, an MFI in Ecuador. As of September 2010, Fundación Alternativa had total assets of USD 6.48 million. As of 2009, Fundación Alternativa reported ROA of -2.96 percent and ROE of -10.6 percent [1,2].
By John Howard-Smith, Research Associate
About responsAbility Social Investments AG: Founded in 2003, responsAbility Social Investments AG of Switzerland is an investment company that aims to enable investors to earn a financial return while allowing people in developing countries and emerging markets to access markets, information and other services 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.
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 April 2010, 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 Corporacion Narino Empresa y Futuro (Contactar): Corporacion Narino Empresa y Futuro (Contactar) is a Colombian microfinance institution (MFI) that was established in 1995. As of 2009 Contactar reported a gross loan portfolio of USD 14.5 million, total assets of USD 14.7 million, return on assets of 10.40 percent and return on equity of 24.31 percent. Contactar also reported having 20,100 active borrowers.
About COAC Esperanza y Progreso Del Valle (COAC Progreso): Founded in 2005, COAC Esperanza y Progreso Del Valle (COAC Progreso) is a microfinance institution (MFI) based in Pichincha, Ecuador. As of 2007—the last year COAC Progreso reported financial information to the nonprofit Microfinance Information Exchange (MIX)—COAC Progreso had USD 389,000 in total assets.
About Vision Banco: Founded in 1992, Vision Banco is a microfinance institution (MFI) based in Asunción, Paraguay. It aims to contribute to economic development, job creation and poverty alleviation. As of September 2010, Vision Banco reported USD 425 million in total assets, return on assets (ROA) of 2.75 percent and return on equity (ROE) of 35.6 percent.
About Forjadores de Negocios: Founded in 2005 in Mexico City, Forjadores de Negocios is a microfinance institution (MFI) that predominantly serves poor women. In 2006, it became an unregulated multipurpose financial entity allowing the organization to offer any type of credit or leasing product. As of 2009, Forjadores de Negocios reported USD 7.89 million in total assets, return on assets (ROA) of -10.5 percent and return on equity (ROE) of -83.4 percent.
[1] Data submitted by responsAbility Social Investments AG to MicroCapital
[2] Microfinance Information Exchange (MIX): Fundación Alternativa, http://www.mixmarket.org/mfi/fundaci%C3%B3n-alternativa
MicroCapital’s Microfinance Universe profile: responsAbility Social Investments AG
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility
MicroCapital’s Microfinance Universe profile: responsAbility Global Microfinance Fund (rAGMF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Global+Microfinance+Fund+%28rAGMF%29
MicroCapital’s Microfinance Universe profile: Corporacion Narino Empresa y Futuro (CONTACTAR), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Contactar
MicroCapital’s Microfinance Universe profile: COAC Esperanza y Progreso Del Valle (COAC Progreso), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=COAC+Esperanza+y+Progreso+Del+Valle+(COAC+Progreso)
MicroCapital’s Microfinance Universe profile: Vision Banco, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Vision+Banco
MicroCapital’s Microfinance Universe profile: Forjadores de Negocios, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Forjadores+de+Negocios
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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