responsAbility Social Investments AG, an investment company based in Switzerland, recently reported to MicroCapital that it has made loans totaling USD 4.7 million to microfinance institutions (MFIs) in Tajikistan.
The responsAbility Microfinance Leaders Fund (rAMLF) and the responsAbility Global Microfinance Fund (rAGMF), microfinance investment vehicles (MIVs) managed by responsAbility, each invested USD 250,000 in Arvand, a provider of microcredit, microleasing and deposit services in Tajikistan [1]. As of 2009, Arvand reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 5.3 million, a gross loan portfolio of USD 4.1 million, approximately 7,800 borrowers, return on assets (ROA) of 3.17 percent and return on equity (ROE) of 22.1 percent.
rAGMF invested USD 2.5 million in Bank Eskhata, another MFI in Tajikistan [1]. As of 2009, Eskhata reported to MIX total assets of USD 67.5 million, a gross loan portfolio of USD 32.9 million, approximately 9,900 borrowers, ROA of -0.13 percent and ROE of -1.1 percent.
rAGMF and rAMLF further invested USD 500,000 each in FINCA Tajikistan, a subsidiary of FINCA International [1]. As of 2009, FINCA Tajikistan reported to MIX total assets of USD 10.5 million, a gross loan portfolio of USD 5 million, approximately 23,600 borrowers, ROA of -1.79 percent and ROE of -8.57 percent. FINCA International is a global microfinance network operating in 21 countries reporting total assets of USD 467 million as of 2009 [2].
rAGMF loaned USD 700,000 to Oxus Microfinance Tajikistan, an MFI that manages the local microfinance activities of the Agency for Technical Cooperation and Development (ACTED), a French NGO [1]. As of 2009, Oxus Microfinance Tajikistan reported to MIX total assets of USD 6.9 million, a gross loan portfolio of USD 5.4 million, approximately 6,500 borrowers, ROA of -2.37 percent and ROE of -10.88 percent. ACTED operates in 28 countries reporting total assets of approximately USD 76 million as of 2009.
By Medha Ravi, Research Associate
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 Microfinance Leaders Fund (rAMLF):
The responsAbility Microfinance Leaders Fund (rAMLF) invests in large microfinance institutions (MFIs) through debt securities and equity investments. The Luxembourg Fund Labeling Agency (LuxFLAG), an independent organization that certifies that investment vehicles actually invest in the microfinance sector, renewed rAMLF’s label as of April 2010. rAMLF reported 129 active investments in microfinance in 2010 and total fund assets of USD 160 million.
About responsAbility Global Microfinance Fund (rAGMF):
rAGMF is a microfinance in 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 Microfinance Information Exchange (MIX), the microfinance information clearinghouse, that it had USD 474 million in fund assets as of 2010.
About Arvand:
Established in Tajikistan in 2002 by ACDI/VOCA, 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 2009, Arvand reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 5.3 million, a gross loan portfolio of USD 4.1 million, approximately 7,800 borrowers, return on assets (ROA) of 3.17 percent and return on equity (ROE) of 22.1 percent.
About Bank Eskhata:
Established in 1993 in Tajikistan, Eskhata is a commercial bank that provides loans, savings and fund transfer services. As of 2009, Eskhata reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 67.5 million, a gross loan portfolio of USD 32.9 million, approximately 9,900 borrowers, return on assets (ROA) of -0.13 percent and return on equity (ROE) of -1.1 percent.
About FINCA Tajikistan:
Established in 2003 and based in Tajikistan, FINCA Tajikistan a microfinance institution (MFI) that serves rural and urban clients through group loans. As of 2009, FINCA Tajikistan reported to MIX total assets of USD 10.5 million, a gross loan portfolio of USD 5 million, approximately 23,600 borrowers, ROA of -1.79 percent and ROE of -8.57 percent. FINCA Tajikistan’s parent organization, FINCA International, is a global microfinance network operating in 21 countries with total assets of USD 467 million as of 2009.
About FINCA International:
Founded in 1984 by Dr John Hatch, a pioneer of the village banking model, the Foundation for International Community Assistance (FINCA) International is a global microfinance network based in Washington, DC, serving approximately 700,000 people through its subsidiaries in 21 countries. As of 2009, it had total assets of USD 467 million, with an operating profit of USD 742,000.
About Oxus Microfinance Tajikistan:
Oxus Microfinance is a microfinance institution that was founded in Tajikistan in 1998 as the local microfinance project of the French NGO, Agency for Technical Cooperation and Development (ACTED). It aims to improve food security, provide access to financial services and empower savings and credit groups across the country. Registered in October 2005 as a separate microfinance fund named Oxus, it seeks to increase its impact through microloans that support small businesses. As of 2009, Oxus Microfinance Tajikistan reported to MIX total assets of USD 6.9 million, a gross loan portfolio of USD 5.4 million, approximately 6,500 borrowers, return on assets (ROA) of -2.37 percent and return on equity (ROE) of -10.88 percent.
Source and Resources:
[1] Data submitted by responsAbility Social Investments AG to MicroCapital in March 2011
[2] MicroCapital’s Microfinance Universe Profile: FINCA International, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+International
MicroCapital.org story, January 10, 2011, “MICROCAPITAL BRIEF: responsAbility Social Investments of Switzerland Makes Loans Totaling $13m to Banco Continental of Paraguay, Financiera Confianza of Peru”, https://www.microcapital.org/microcapital-brief-responsability-social-investments-of-switzerland-makes-loans-totaling-13m-to-banco-continental-of-paraguay-financiera-confianza-of-peru/
MicroCapital.org story, February 4, 2011, “MICROCAPITAL BRIEF: responsAbility Social Investments of Switzerland Makes Loans Totaling $10m to FINCA International Subsidiaries in Azerbaijan, Russia, Ecuador and Mexico”, https://www.microcapital.org/microcapital-brief-responsability-social-investments-of-switzerland-makes-loans-totaling-10m-to-finca-international-subsidiaries-in-azerbaijan-russia-ecuador-and-mexico/
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 Microfinance Leaders Fund (rAMLF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Microfinance+Leaders+Fund+%28rAMLF%29
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: Arvand, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Arvand
MicroCapital’s Microfinance Universe Profile: Bank Eskhata, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=the+eskhata+bank
MicroCapital’s Microfinance Universe Profile: FINCA Tajikistan, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+Tajikistan
MicroCapital’s Microfinance Universe Profile: Oxus Microfinance Tajikistan, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Oxus+Microfinance
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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