Symbiotics Group, a Swiss for-profit provider of microfinance-related and other investment services, recently issued impact bonds in the amount of USD 8.75 million to Satin, a microfinance institution based in Delhi, India; USD 6.78 million to Prasac, a microfinance institution offering financial services to people with low incomes in Cambodia; and USD 2.75 million to MicroCred China, a unit of France-based MicroCred Group.
The bonds issued for Prasac are the first of three tranches, with the other two expected in late 2014 and early 2015 to bring the total of the issuances to USD 13 million. The bond deal with MicroCred China is the second made between Symbiotics and the borrower. As reported by MicroCapital at the time, the first issuance took place in August 2014 in the amount of USD 9.8 million.
From 2004 through July 2014, Symbiotics has provided USD 811 million in capital to 803,000 micro-, small and medium-sized enterprises (MSMEs) through 150 financial institutions.
As of 2013, Prasac reported total assets of USD 452 million, 197,000 borrowers with a gross loan portfolio of USD 379 million, 303,000 depositors with deposits amounting to USD 124 million, return on assets of 4.8 percent and return on equity of 38.9 percent.
As of 2014, MicroCred China, which operates in the province of Sichuan, had 17 branches with 14,000 borrowers and a gross loan portfolio of USD 85 million. MicroCred China does not accept deposits. As of July 2014, MicroCred Group reported total assets of EUR 171 million (USD 287 million), a gross loan portfolio of EUR 143 million (USD 241 million) and served 230,000 clients.
As of 2013, Satin had 800,000 borrowers with a gross loan portfolio of INR 1,060 crores (USD 17.1 million). Satin does not accept deposits.
By Simon Pfanner – Research Associate
About Symbiotics
Founded in 2004, Symbiotics provides for-profit investment intermediary and business services to investors in and practitioners of micro- and small enterprise (MSE) development. Symbiotics works with approximately 28 investment funds (MIVs) and a dozen institutional investors. The company also offers Syminvest, a microfinance investment intelligence platform designed to increase transparency and enhance investment capacity in the industry by monitoring regional markets as well as individual institutions. From 2004 through July 2014, Symbiotics provided USD 811 million in capital to 803,000 micro-, small and medium-sized enterprises (MSMEs) through 150 financial institutions.
About Prasac
Prasac was originally founded as a credit component of an agriculture support program funded by the European Union and implemented by the Royal Government of Cambodia. It was registered in 2004 with the Cambodia Ministry of Commerce as a private limited liability company and is licensed by the National Bank of Cambodia (NBC) to offer financial services. As of 2013, Prasac reported total assets of USD 452 million, 197,000 borrowers with a gross loan portfolio of USD 379 million, 303,000 depositors with deposits amounting to USD 124 million, return on assets of 4.8 percent and return on equity of 38.9 percent.
About MicroCred Group
MicroCred Group creates microfinance institutions (MFIs) and provides technical assistance to MFIs. MicroCred was created in 2005 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, through MicroCred Nanchong and MicroCred Sichuan, as well as Cote d’Ivoire, Madagascar, Mali, Nigeria and Senegal. As of July 2014, MicroCred Group reported total assets of EUR 171 million (USD 287 million), a gross loan portfolio of EUR 143 million (USD 241 million) and served 230,000 clients.
About Satin Creditcare Network Limited
Established in 1990, Satin Creditcare Network Limited is a for-profit Indian microfinance institution based in Delhi that provides financial services to Micro, Small and Medium Enterprises. As of 2013, Satin had 800,000 borrowers with a gross loan portfolio of INR 1,060 crores (USD 17.1 million). Satin does not accept deposits.
Sources and Additional Resources
[1] Information provided to MicroCapital by Symbiotics, October, 2014
MicroCapital, September 6, 2014, Symbiotics 2014 MIV [Microfinance Investment Vehicle] Survey Report: Market Data and Peer Group Analysis
MicroCapital, August 7, 2014, Symbiotics Issues $30m in Bonds to MicroCred China; India’s Arohan, Grameen Koota, Annapura Microfinance
MicroCapital, April 28, 2014, Luxembourg Fund Labeling Agency (LuxFLAG) Provides Environmental Label to Parvest Green Tigers Fund; Microfinance Label to EU Microfinance Platform, Symbiotics (SICAV) SEB Microfinance Fund
MicroCapital Universe Profile: Symbiotics Group
MicroCapital Universe Profile: Prasac
MicroCapital Universe Profile: MicroCred Group
MicroCapital Universe Profile: Satin Creditcare Network Limited
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